Sold 1 Naked Call on JNJ - Potential income return 0.071% in 10 days

On March 30, 2021, we bought 1 naked call bear spread on JNJ stock expiring on April 9, 2021. For this trade, we got a $17 premium (before commissions).

These trades come as the #198 and #199 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 0.61% from our $2,000 monthly goal.  While in total we have reached already 304.3% so far. Awesome.

here is our trade setup:

  • BOT  1  JNJ    APR 09 '21 + 172.5 - 170 Call Bear Spread   -0.17

what can happen next:

JNJ is trading below our strike price of $170 at the expiry date (APR 09, 2021), in such case, we keep the premium.

In case JNJ is trading above our strike price of $170, we are troubled as we have to deliver 100 shares at the price of USD 170, to avoid that we will try to roll up and for credit. Our max gain $12.2 or 0.071% potential total income return in 10 days

Break-even: $170.12