Rolled Forward 1 Covered Call on Tilray stock (NASDAQ:TLRY) - Potential income return +10.3% in 63 days

On July 12, 2021, I rolled forward 1 covered call on TLRY stock expiring on July 23, 2021. For this trade, we got a $13 premium (after commissions)

We have been in this trade since May 21, 2021

Our average buy price $17.18

With TLRY stock failing significantly under our strike price of $18, I decided to roll early and not wait till the expiry on the weekend

here is our trade setup:

  • BOT 1 TLRY Jul 16 '21 18 Call Option 0.08 USD

  • SLD 1 TLRY Jul 23 '21 18 Call Option 0.26 USD

what can happen next:

TLRY is trading below our strike price of $18 at the expiry date (July 23, 2021), in this case, we keep the premium and sell more covered calls to lower our cost basis. 

In case the TLRY stock is trading above our strike price of $18, our 100 shares get called away at the strike price of $18, and we realize our max gain +$177 or 10.3% potential return of income in 63 days

Break-even: $16.23