Roll Forward 1 Covered Call on Intel Corporation (NASDAQ:INTC) - Potential income return 2.27% in 16 days

On April 23, 2021, we rolled forward 1 covered call on INTC stock expiring on May 07 30, 2021. For this trade, we got a $30 premium (before commissions).

Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, in Silicon Valley.

We have been in this trade since April 21 Owehn we bought 102 shares with Intel Corporation (NASDAQ:INTC) paying $62.97 per share and simultaneously sold 1 in the money covered call on it (buy/write) with a strike price of $62 which expires on April 23, 2021 (2 days).

Unfortunately, INTC share dropped under our strike price and we decided to start writing additional calls to lower our cost base.

here is our trade setup:

  • SLD 1 INTC MAY 07 '21 62 Call Option 0.30 USD

what can happen next:

INTC is trading below our strike price of $62 at the expiry date (MAY 07, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case INTC is trading above our strike price of $62, our 100 shares get called away at the strike price of $62 and we realize our max gain of $141,2 or2.27% potential total income return in 16 days

Break-even: $60.52