Rolling forward 1 Covered Call on Ford (NYSE:F) +3.77% Potential income return in 50 days

On April 30, 2021, we rolled forward 1 covered call on F stock expiring onMay 21, 2021. For this trade, we got a $12 premium (before commissions)

We have been in this trade since April 23, when we got assigned 100 shares at $12.5, see: Sold 1 Covered Call on Ford (NYSE:F) +3% Potential income return 3 in 22 days

here is our trade setup:

  • SLD 1 F MAY 21 '21 12.5 Call Option 0.12 USD

what can happen next:

F is trading below our strike price of $12.5  at the expiry date (May 21, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case F is trading above our strike price of $12.5, our 100 shares get called away at the strike price of $12.5, and (as we have already collected some premium from selling puts in the past) we realize our max gain of +$47.2 or +3.77% potential return of income in 50 days

Break-even: $12.04