Generating Income with Tilray Brands (TLRY) Stock through Covered Calls

As a seasoned investor, I am always on the lookout for opportunities to grow and earn passive income from my stock portfolio. One stock that has caught my attention is Tilray Brands (NASDAQ: TLRY).

On February 9, 2023, I decided to increase my exposure to this stock by purchasing 17 additional shares at $3.00 per share.

This article is not intended as trading advice. The information shared is based on my personal experience and should not be taken as a recommendation to buy or sell any particular stock or investment product.

I've been following Tilray Brands since 2020 and have been selling both call and put options to generate extra income from this stock.

Today, I hold 33 shares of Tilray Brands with an average cost per share of $3.20. My goal is to reach 100 shares by April/May 2023, so that I can start selling covered calls and generate even more passive income from this stock. I'm confident that I'll reach my target, given that I have just 67 more shares to go.

In case I already had 100 shares today, I could sell a covered call option with a strike price of $3.5 and an expiry date of March 17, 2023 (36 days from now). This could potentially earn me a premium of $0.11 per share, realizing $41 in total income.

In the case that the call option expires worthlessly, I would still earn $11, and I would start over by writing additional call options.

Stock analysts forecast

Tilray Brands has received a positive outlook from analysts, with a median target price of 3.50 and a high estimate of 9.00. The median estimate represents a potential increase of 18.64% from the last price of 2.95.

For those who are unfamiliar with Tilray Brands, it is an American pharmaceutical, cannabis-lifestyle, and consumer packaged goods company. The company is headquartered in New York City and operates in the United States, Canada, Australia, New Zealand, Latin America, and also has growing facilities in Germany and Portugal

This article was made with the assistance of an artificial intelligence language model.