Roll Forward and up 1 Covered Call on FuelCell Energy stock (NASDAQ:FCEL) - Potential income return 11.71% in 35 days

On June 25, 2021, we rolled forward and rolled up 1 covered call on the FuelCell Energy stock (NASDAQ:FCEL) with a new expiry date set on July 02, 2021. The aftermath of this trade: +$7.6 (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 and dropping under $9 on the expiry date, we decided to roll forward our strike price and roll to the next week

here is our trade setup:

  • SLD 1 FCEL JUL 02 '21 10.5 Call Option 0.1 USD

what can happen next:

FCEL is trading below our strike price of $10.5 at the expiry date (July 02, 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 $123 or 11.71% potential total income return in 35 days

Break-even: $9.30