Sold 8 Covered Calls on SNDL - Potential income return 20.16% in 36 days

On February 19, 2021, we sold 8 covered calls on SNDL stock expiring on March 19, 2021. For this trade, we got a $200 premium (before commissions).

This trade comes as #40 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 6.02% from our $3,000 monthly goal.  .While in total we have reached already 92.90% so far. Awesome.

We originally entered this trade as a put ratio back spread a week ago, see: Sold Put Bull Ratio Back Spreads on SNDL – 11.12 % potential income return in 8 days

here is our trade setup:

  • SLD 8 SNDL MAR 19 '21 2.5 Call Option 0.25 USD

what can happen next:

SNDL is trading below our strike price of $2.5 at the expiry date (March 19, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case SNDL is trading above our strike price of $2.5, our 800 shares get called away at the strike price of $2.5 and we realize our max gain $402.6 or 20.16% potential income return in 36 days

Break-even: $2.00

Selling covered calls with SNDL stock
Selling covered calls with SNDL stock
  • Running Total  7 Trades since February 9, 2021
  • Options income $496