Rolled Forward and Up WBA Call Option +1.12% potential income return in 42 days
On November 05, 2021, I rolled forward and up 1 call option on WBA stock with a strike price of $50 and expiry on December 10. I don't have actually 100 shares to deliver if challenged (I have just 51). 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.
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.
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 NOV 05 '21 49 Call Option 0.69 USD
SLD 1 WBA DEC 10 '21 50 Call Option 1.19 USD
What happens next?
On the expiry date, December 10, 2021, WBA is trading under $50 per share - options expire worthlessly and I keep premium - if WBA trades above $50 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: $50+$0.56= $50.56