Covered Calls with Reinis Fischer

Share this post
Sold 1 Covered Call on (NYSE:GOLD) - Potential income return 1.8% in 4 days
coveredcalls.reinisfischer.com

Sold 1 Covered Call on (NYSE:GOLD) - Potential income return 1.8% in 4 days

Reinis Fischer
Apr 23, 2021
Share this post
Sold 1 Covered Call on (NYSE:GOLD) - Potential income return 1.8% in 4 days
coveredcalls.reinisfischer.com

On April 19, 2021, we bought 104 shares with NYSE:GOLD and simultaneously sold 1 covered call on it expiring on April 23, 2021 (weekly options). For this trade, we got a $17 premium (before commissions)

NYSE:GOLD - Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries. It is headquartered in Toronto, Ontario, Canada.

In case our shares will get called away Friday, we will keep 4 single shares. Our ultimate goal is to collect at least 100 free shares

here is our trade setup:

  • BOT 104  GOLD Stock 22.20 USD 

  • SLD 1 GOLD APR 23'21 22.5 Call Option 0.17 USD

what can happen next:

GOLD is trading below our strike price of $22.5  at the expiry date (April 23, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case GOLD is trading above our strike price of $22.5, our 100 shares get called away at the strike price of $22.5 and we realize our max gain $39.6 or 1.8% potential return of income in 4 days. 

Break-even: $22.06

  • Running Total: 10 Trade since April 8, 2021

  • Options income $62

Share this post
Sold 1 Covered Call on (NYSE:GOLD) - Potential income return 1.8% in 4 days
coveredcalls.reinisfischer.com
Comments

Create your profile

0 subscriptions will be displayed on your profile (edit)

Skip for now

Only paid subscribers can comment on this post

Already a paid subscriber? Sign in

Check your email

For your security, we need to re-authenticate you.

Click the link we sent to , or click here to sign in.

TopNewCommunity

No posts

Ready for more?

© 2022 Reinis Fischer
Privacy ∙ Terms ∙ Collection notice
Publish on Substack Get the app
Substack is the home for great writing