Sold 1 Covered Call on (NYSE:GOLD) - Potential income return 2.46% in 8 days

On April 08, 2021, we bought 100 shares with NYSE:GOLD and simultaneously sold 1 covered call on it expiring on April 16, 2021 (weekly options). For this trade, we got a $19 premium (before commissions)

NYSE:GOLD - Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries. It is headquartered in Toronto, Ontario, Canada.

I decided to invest in this stock the same amount of money I'm losing kilograms at the gym. The plan is to invest in this stock weekly, every Friday (as long as there is a weight loss)

Here come my first 2 kilograms invested in.

here is our trade setup:

  • BOT 100  GOLD Stock 21.10 USD 
  • SLD 1 GOLD APR 16 '21 21.5 Call Option 0.19 USD

what can happen next:

GOLD is trading below our strike price of $21.5  at the expiry date (April 16, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case GOLD is trading above our strike price of $21.5, our 100 shares get called away at the strike price of $21.5 and we realize our max gain $52 or 2.46% 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.

Break-even: $20.98

Selling covered calls on Gold NYSE stock
Selling covered calls on Gold NYSE stock