New Covered Call on FuelCell Energy stock (NASDAQ:FCEL) - Potential income return 2.72% in 7 days

On May 28, 2021, we sold 1 covered call on FCEL stock expiring on june 04, 2021 (7DTE). For this trade, we got a, $31 premium (before commissions)

I sold this covered call just shortly after getting assigned 100 shares at $10.5.

here is our trade setup:

  • SLD 1 FCEL June 06 '21 10.5 Call Option 0.31 USD

what can happen next:

FCEL is trading below our strike price of $10.5 at the expiry date (June 04, 2021), in this case, we keep the premium and sell more covered calls to lower our cost basis. 

In case the FCEL stock is trading above our strike price of $10.5, our 100 shares get called away at the strike price of $10.5, and we realize our max +$28.6 or 2.72% potential return of income in 7 days

Break-even: $10.22