Roll Forward 1 Covered Call on FuelCell Energy stock (NASDAQ:FCEL) - Potential income return 12.34% in 49 days

On July 02, 2021, we rolled forward 1 covered call on the FuelCell Energy stock (NASDAQ:FCEL) with a new expiry date set on July 09, 2021. The aftermath of this trade: +$6.6 (after commissions)

We have been in this trade since the end of May, when we got assigned 100 shares at $10.5, see: New Covered Call on FuelCell Energy stock (NASDAQ:FCEL) - Potential income return 2.72% in 7 days

With the FCEL not reaching our strike price of $10.5 and actually dropping under $9 on the expiry date, we decided to roll forward our strike price and roll to the next 14 days.

here is our trade setup:

  • SLD 1 FCEL JUL 09 '21 10.5 Call Option 0.09 USD

what can happen next:

FCEL is trading below our strike price of $10.5 at the expiry date (July 09, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case FCEL 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 gain of $129.6 or 12.34% potential total income return in 49 days

Break-even: $9.24