Sold 1 Call Option on WBA – 0.3% potential income return in 4 days

On October 25, 2021, I sold 1 call option on WBA stock with a strike price of $51 and expiry this Friday. I don't have actually 100 shares to deliver if challenged (I have some 31). In case of danger, I will 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.

This trade comes as the #31 in the month of October, according to my trading plan for this month, the premium generated from this trade makes me about 2.1% of my $600 monthly goal.  While in total I have reached already 87.9% so far. Awesome!

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:

  • SLD 1 WBA OCT 29 '21 51 Call Option 0.18 USD

What happens next?

On the expiry date, October 29, 2021, WBA is trading under $51 per share -  options expire worthlessly and I keep premium - if WBA trades above $51 I'm troubled as I need to deliver shares I don’t have, to avoid such scenario I will roll up and forward my strike price

Break-even price: $51+$0.15= $51.15