Sold 1 Covered Call on Virgin Galactic Holdings (NYSE:SPCE) - Potential income return 6.69% in 7 days

On April 16, 2021, we bought 107 shares with Virgin Galactic Holdings (NYSE:SPCE) and simultaneously sold 1 covered call (buy/write) on it expiring on April 23, 2021 (weekly options). For this trade, we got a $76 premium (before commissions)

This trade comes as the #74 in the month of April, according to our trading plan for this month, the premium generated from this trade makes us about 2.62% from our $2,800 monthly goal.  While in total we have reached already 123.51% this month so far. Awesome.

Virgin Galactic is an American spaceflight company within the Virgin Group. It is developing commercial spacecraft and aims to provide suborbital spaceflights to space tourists. Virgin Galactic's suborbital spacecrafts are air launched from beneath a carrier airplane known as White Knight Two.

ere is our trade setup:

  • BOT 107 SPCE Stock 23.14 USD 
  • SLD 1 SPCE APR 23 '21 24 Call Option 0.76 USD

what can happen next:

SPCE is trading below our strike price of $24  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 SPCE is trading above our strike price of $24, our 100 shares get called away at the strike price of $24 and we realize our max gain $159.6 or 6.89% potential return of income in 7 days. 

Break-even: $22.41

Investing with covered calls: SPCE
Investing with covered calls: SPCE
  • Running Total 30 Trades since April 27, 2020

  • Options Income: $529