Roll forward 1 Covered Call on SOLO - Potential income return +1.88% in 28 days

On April 30, 2021, we roll forwarded 1 covered call on SOLO stock expiring on May 07, 2021 (weekly options). For this trade, we got a $7 premium (before commissions)

We bought 100 shares of SOLO at $5

here is our trade setup:

  • SLD 1 SOLO MAY 07 '21 4.5 Call Option 0.07 USD

what can happen next:

SOLO is trading below our strike price of $4.5  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 SOLO is trading above our strike price of $4.5, our 100 shares get called away at the strike price of $4.5, and (as we have already collected some premium from selling puts and calls in the past) we realize our max gain +$9.4 or +1.88% potential return of income in 28 days

Break-even: $4.43