Discover more from Covered Calls with Reinis Fischer
Rolled Forward and Down Dow Inc Covered Call +1.72% potential income return in 28 days
On October 29, 2021, I rolled forward and down 1 covered call on Dow inc. stock, a position I originally established at the start of October by investing $5,850.
Dow Inc. is an American commodity chemical company. It was spun off DowDuPont on April 1, 2019, at which time it became a public company and was added to the Dow Jones Industrial Average. The company is headquartered in Midland, Michigan.
This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
This trade comes as the #40 in the month of October, according to my trading plan for this month, the premium generated from this trade makes me about 3.2% of my $600 monthly goal. While in total I have reached already 108.93% so far. Awesome!
here is the trade setup:
SLD 1DOW NOV 05 '21 58 Call Option 0.22 USD
What happens next?
On the expiry date, November 5, 2022, DOW is trading under $58 per share - options expire worthlessly and I keep premium - if DOW trades above $58 on the expiry date, my 100 shares will get called away and I realize my max profit $101 (-$50+$151) or potential 1.72% yield in 28 days.
Break-even price: $58.5-$1.51= $56.99