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

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