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Sold 1 Call Option on WBA – 0.34% potential income return in 7 days
On November 26, 2021, I sold 1 call option on WBA stock with a strike price of $48 and expiry next Friday.
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:
SLD 1 WBA DEC 03 '21 48 Call Option 0.19 USD
What happens next?
On the expiry date, December 03, 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 roll up and forward my strike price
Break-even price: $49+$0.16= $49.16