Sold 1 Naked Call on LI - Potential income return 1.56% in 42 days

On March 19, 2021, we sold 1 naked call on LI stock expiring on April 30, 2021. For this trade, we got a $57 premium (before commissions).

This trade comes as #131 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 2.73% from our $2,000 monthly goal. While in total we have reached already 259.22% so far. Awesome.

here is our trade setup:

  • SLD 1 LI APR 30 '21 35 Call Option 0.57 USD

what can happen next:

LI is trading below our strike price of $35 at the expiry date (April 30, 2021), in such case, we keep the premium.

In case LI is trading above our strike price of $35, we are troubled as we have to deliver 100 shares at the price of USD 35, to avoid that we will try to roll up and for credit. Our max gain $54.2 or 1.56% potential total income return in 42 days

Break-even: $35.54