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Established New Covered Call on Deutsche Bank NYSE:DB - 1.47% potential gain in 1 day
On May 12, 2022, I bought 100 shares of NYSE: DB stock paying $9.48 per share, and simultaneously sold 1 covered call on them with a strike price of $9.5 and expiry tomorrow. Credit received $14
This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
here is the trade setup:
BOT 100 DB Stock 9.48USD
SLD 1 DB MAY 13 '22 9.5 Call Option 0.14USD
I bought 100 shares at $9.48 apiece, in total paying $948 and sold 1 covered call with the tomorrow’s expiry, for which I received a premium of $14 (before commissions)
What happens next?
On the expiry date, May 13, 2022, NYSE: DB is trading under $9.5per share - options expire worthlessly and I keep premium and start over - if DB trades above $9,5 on the expiry date, my 100 shares will get called away and I will realize my max profit $14 ($2 value gain and $12 options premium) or potential 1.47% income yield in 7 days.
Break-even price: $9.48-$0.12= $9.36
Running Total 1 Trades since May 12, 2022
Options income: $12