Roll Forward and up 2 Covered Calls on Corbus Pharmaceuticals (NASDAQ:CRBP) - Potential income return 1.62% in 297 days

On May 21, 2021, we rolled forward and up 2 covered calls on CRBP stock with expiry on June 18, 2021. For this trade, we got a small $11 premium (after commissions).

This trade was originally established as a credit spread back on August 27, 2020, and since then we have been selling covered calls. Our average stock buys price $2.46

Corbus Pharmaceuticals Holdings, Inc. is a Phase 3 clinical-stage pharmaceutical company focused on the development and commercialization of novel therapeutics to treat inflammatory and fibrotic diseases by leveraging its pipeline of rationally designed, endocannabinoid system-targeting drug candidate.

Here is our trade setup:

  • SLD 2 CRBP JUNE 18 '21 2.5 Call Option 0.08 USD

what can happen next:

CRBP is trading below our strike price of $2.5 at the expiry date (June 8, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis.

In case CRBP is trading above our strike price of $2.5, our 200 shares get called away at the strike price of $2.5 and we realize our max gain of $9+ or  1.62% potential income in 297 days

Break-even: $1.92