Rolled Forward and up NYSE:GOLD Covered Call 4.82% potential income in 10 days
On February 11, 2022, I rolled forward and up 1 covered call on NYSE:GOLD stock, a position I originally established at the start of February 2022 by investing $1,969, see: Established New Covered Call on NYSE: GOLD
NYSE:GOLD - Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries. It is headquartered in Toronto, Ontario, Canada.
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Here I made a quick YouTube video about is Barrick Gold a buy from the technical perspective - moving averages, crossovers e.t.c
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.
NYSE:GOLD is up by some impressive 11% YTD, and as I think mostly because of Russia - Ukraine rising tensions. Once the tensions will be down, down will go the stock price.
I have been trading calls and put options with great success on NYSE: GOLD stock for about a year.
here is the trade setup:
BOT 1 GOLD Feb11'22 20 CALL 0.24 USD
SLD 1 GOLD Feb18'22 20.5 CALL 0.33 USD
Here I bought back today’s expiry 20 call option, paying $24, and sold a new covered call with 50 cents higher strike price at 20.5 for which I got paid $33 (before commissions)
What happens next?
On the expiry date, February 18, 2022, NYSE: GOLD is trading under $20.5 per share - options expire worthlessly and I keep premium - if GOLD trades above $20.5 on the expiry date, my 100 shares will get called away and I realize my max profit $95 ($14+$81) or potential 4.82% income yield in 10 days.
Break-even price: $19.69-0.14= $19.55