On December 03, 2021, I rolled forward and down 1 call option on WBA stock with a strike price of $49 and expiry on December 31. I don't have actually 100 shares to deliver if challenged (I have just 81). In case of danger, I will try to roll up and forward this call option.
Walgreens Boots Alliance, Inc. is a holding company headquartered in Deerfield, Illinois that owns the retail pharmacy chains Walgreens and Boots, as well as several pharmaceutical manufacturing, wholesale, and distribution companies.
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WBA is one of the dividend stocks I actually want to acquire and collect both the dividend and sell call options. I have a plan to buy 10 additional shares with WBA every week until I will reach 100 shares to sell covered calls safely. Hopefully will get there by the end of the year.
here is the trade setup:
BOT 1 WBA DEC 10 '21 50 Call Option 0.04 USD
SLD 1 WBA DEC 31 '21 49 Call Option 0.39 USD
What happens next?
On the expiry date, December 31, 2021, WBA is trading under $49 per share - options expire worthlessly and I keep premium - if WBA trades above $49 I'm troubled as I need to deliver shares I don’t have, to avoid such scenario I will try to roll up and forward my strike price
Break-even price: $49+$0.87= $49.87