Sold 2 Covered Calls on HUGE - Potential income return 68.52% in 9 days

On February 10, 2021, we sold 2 covered calls on HUGE stock expiring on February 19, 2021. For this trade, we got a $90 premium (before commissions).

This trade comes as #24 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 2.84% from our $3,000 monthly goal.  .While in total we have reached already 59.50% so far. Awesome.

here is our trade setup:

  • BOT 200 HUGE Stock 3.19USD
  • SLD 2 HUGE FEB 19 '21 5 Call Option 0.45 USD

what can happen next:

HUGE is trading below our strike price of $5 at the expiry date (February 19, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case HUGE is trading above our strike price of $5, our 200 shares get called away at the strike price of $5 and we realize our max gain $437.2 or 68.52% potential total income return in 9 days

Break-even: $2.77

Selling covered calls with HUGE stock
Selling covered calls with HUGE stock
  • Running Total  2 Trades since February 10, 2021
  • Options income $85