Roll Forward and Up 1 Covered Call on FuelCell Energy stock (NASDAQ:FCEL) - Potential income return 19.12% in 21 days

On June 11, 2021, we rolled forward and rolled up 1 covered call on the FuelCell Energy stock (NASDAQ:FCEL) with a new expiry date on June 18, 2021. The aftermath of this trade: +$23.8(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 $11 on the expiry date, we rolled forward and up this contract to the next week.

here is our trade setup:

  • SLD 1 FCEL JUN 18 '21 11.5 Call Option 0.26 USD

what can happen next:

FCEL is trading below our strike price of $11.5 at the expiry date (June 18, 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 $11.5, our 100 shares get called away at the strike price of $11.5 and we realize our max gain of $200.8 or 19.12% potential total income return in 21 days

Break-even: $9.51