Real Covered Call Trade Walkthrough – Canadian Example
Real Covered Call Trade Walkthrough – Canadian Example
Many guides talk about how covered calls work — but let’s walk through a real Canadian example using Optrader.ca.
Step 1: Screening with Optrader
We start on demo.optrader.ca, and filter by:
- ROO % ≥ 2.5%
- Open Interest ≥ 100
- Earnings filter ON (exclude stocks with earnings before expiry)
- Delta: 0.2–0.4 for moderate assignment risk
- News Sentiment: Positive
The top pick: ABX.TO (Barrick Gold)
Expiry: Aug 16, 2025
Strike: $30
Premium: $0.98
Stock Price: $29.12
Step 2: Trade Entry
We own 100 shares of ABX.TO at $29.12. We sell 1 call option at the $30 strike for $0.98 (covered).
- Total Premium Collected: $98
- Max Return: $98 premium + $88 capital gain = $186
- Return on Option (ROO): ~6.4% in 23 days
Step 3: Managing the Position
We monitor news using Optrader’s AI sentiment module. No earnings are due, and sentiment stays positive.
Stock hovers around $30.00 until expiry.
Step 4: Outcome at Expiry
- Final stock price: $29.94
- Option expires worthless – we keep the premium
- Unrealized gain on shares: +$82
Total outcome: $98 profit from option, $82 unrealized gain = +$180, or 6.1% ROI in 3 weeks.
Lessons from the Trade
- ✅ Screening tools reduce bad setups
- ✅ Earnings filters help avoid surprise volatility
- ✅ Optrader’s ROO and sentiment filters increase success rates
- ✅ Letting the option expire gave us full premium and future trade flexibility
Want to find trades like this? Try the free Canadian options screener with built-in premium filters and sentiment tools.
