Sold 1 Covered Call on Bristol Myers Squibb (NYSE:BMY) - Potential income return 1.41% in 8 days

On April 15, 2021, we bought 100 shares with Bristol Myers Squibb (NYSE: BYM) and simultaneously sold 1 covered call (buy/write) on it expiring on April 23, 2021 (weekly options). For this trade, we got a $45 premium (before commissions)

This trade comes as the #71 in the month of April, according to our trading plan for this month, the premium generated from this trade makes us about 1.52% from our $2,800 monthly goal.  While in total we have reached already 117.83% this month so far. Awesome.

Bristol Myers Squibb is an American pharmaceutical company, headquartered in New York City. Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, HIV/AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis, and psychiatric disorders.

ere is our trade setup:

  • BOT 100  BMY Stock 64.51 USD 
  • SLD 1 BMY APR 23 '21 65 Call Option 0.45 USD

what can happen next:

BMY is trading below our strike price of $65  at the expiry date (April 23, 2021), in this case, we keep the premium and sell more covered calls to lower our cost basis. 

In case BMY is trading above our strike price of $65, our 100 shares get called away at the strike price of $65 and we realize our max gain $91.6 or 1.41% potential return of income in 8 days. 

Our plan is not to let this stock go yet, and if our strike price will get challenged we will try to roll up and forward for a credit. Ideally, we see holding this stock for at least a year

Break-even: $64.09

Selling covered calls with BMY stock
Selling covered calls with BMY stock
  • Running Total : 2 Trades since April 15, 2021
  • Options income $37.6