Sold 1 Covered Call on Ford (NYSE:F) +3% Potential income return 3 in 22 days

On April 23, 2021, we sold 1 covered call on F stock expiring on April 30, 2021 (weekly options). For this trade, we got a $17 premium (before commissions)

We sold this covered call just shortly after we got assigned 100 shares at $12.5 each

here is our trade setup:

  • SLD 1 F APR 30 '21 12.5 Call Option 0.17 USD

what can happen next:

F is trading below our strike price of $12.5  at the expiry date (April 30, 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 +37.61 or +3% potential return of income in 22 days

Break-even: $12.13