4 stocks to sell covered calls this April

Updated: 4 April, 2022 seen 37

On April 1st, 2022, to celebrate my 11 years in Georgia I closed most of my stock and options positions. I took a huge loss, but again I must admit, my biggest problem was overtrading -too many open naked positions. Something I want to avoid in the future.

I wanted to close all the positions and buy only AAPL stock to sell covered calls on, but I was short with free capital, and instead, I established covered calls positions on 4 stocks and bought just.a few shares with AAPL stock. The plan is to have 100 shares with Apple stock this year, and once I will have 100 shares start selling covered calls to generate extra income. I'm actually looking to have 100 shares with Apple by the end of June 2022, and looking to execute first covered call from the Vilgåle apt. 

In this article, I will name 4 stocks I'm actually holding and selling call options on during the month of April.

This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.

Virgin Galactic (SPCE)

On April 1, 2022, I bought 100 shares of NYSE: SPCE stock paying $9.90 per share, and simultaneously sold 1 covered call with 7DTE with a strike price of $10. Credit received $45 (before commissions). In case my strike price will not be reached I will roll forward, in case my 100 shares will get called away - will establish put options.

Bank of America (BAC)

On April 1, 2022, I bought 100 shares of NYSE: BAC stock paying $40.86 per share, and simultaneously sold 1 covered call with 7DTE with a strike price of $41. Credit received $67 (before commissions).  In case my strike price will not be reached I will roll forward, in case my 100 shares will get called away - will establish put options.

Deutsche Bank (DB)

On April 1, 2022, I bought 200 shares of NYSE: DB stock paying $12.98 per share, and simultaneously sold 2 covered calls with 7DTE with a strike price of $13. Credit received $32 (per contract / before commissions). In case my strike price will not be reached I will roll forward, in case my 100 shares will get called away - will establish put options.

Tilray (TLRY)

On April 1, 2022, I bought 100 shares of NASDAQ: TLRY stock paying $7.65 per share, and simultaneously sold 1 covered call with 7DTE with a strike price of $8. Credit received $55 (before commissions). In case my strike price will not be reached I will roll forward, in case my 100 shares will get called away - will establish put options.

I was able to take a bit more than $200 from selling 4 covered calls with about $8,500 capital at risk. that translates into 2.3% potential income in 7 days. 

For the rest of April, I'm looking to keep selling call options on positions established and not to open new ones, with the exception being opening a new position only after the stock has been called away. Every week I will additionally invest into buying at least 2 additional shares with AAPl stock. 

For this April I'm looking on about $600-$800 options income from selling covered calls. Learn more about investing with covered calls in my newsletter