Roll forward 1 Covered Call on (NYSE:GOLD) - Potential income return 2.75% in 11 days

On April 23, 2021, we roll forwarded 1 covered call on NYSE:GOLD  stock expiring on April 30, 2021. For this trade, we got $24 (before commissions)

We have been in this trade since April 19, when we bought 104 shares with GOLD at $22.2, see: Sold 1 Covered Call on (NYSE:GOLD) - Potential income return 1.8% in 4 days

here is our trade setup:

  • SLD 1 GOLD APR 30'21 22.5 Call Option 0.24 USD

what can happen next:

GOLD is trading below our strike price of $22.5  at the expiry date (April 30, 2021), in this case, we keep the premium and sell more covered calls to lower our cost basis. 

In case GOLD is trading above our strike price of $22.5, our 100 shares get called away at the strike price of $22.5 and we realize our max gain 61.2 or 2.75% potential return of income in 11 days. 

Break-even: $21.85