Trade Alert: Rolled 5 Covered Calls on FCEL – 26.06% potential income return in 95 days

On September 10, 2021, I rolled forward 5 covered calls on FCEL stock with an expiry set in the next 42 days (October 22, 2021). For this trade, I got a premium of $198 (after commissions)

FuelCell Energy, Inc. is an American fuel cell power company. It designs, manufactures, operates, and services Direct Fuel Cell power plants that run on natural gas and biogas.

I've been in this trade originally since July 19, 2021 when opened a credit spread. Since then, this trade has been rolled once:

This trade comes as the #21 in the month of September, according to my trading plan for this month, the premium generated from this trade makes me about 19.8% of my $1,000 monthly goal.  While in total I have reached already 38.52% so far. Awesome.

Here is the trade setup:

  • SLD 5 FCEL OCT 22 '21 7 Call Option 0.42 USD

For this trade, I got a premium of 198USD (after commissions). In case my strike price will be reached on the expiry date I will realize a 26.06% potential income return in 95 days

What happens next?

On the expiry date, October 22 2021, FCEL is trading above $7 per share -  my 500 shares get called away and I realize my max return - $181+$218+$198+$250 = $847

If the strike price will not be reached, I will roll forward these contracts and collect more premiums.

The Break-even price for this trade = $5.32