Opening (IRA): TQQQ April 19th 50 Monied Covered Call
... for a 47.75 debit.
Comments: Dabbling a smidge in the leveraged ETF due to its high IV (56.3% 30-day).
Selling the -75 delta call against a one lot to emulate a 25 delta short put, but with "built-in" defense via the short call, which can be rolled down, out, or down and out to reduce cost basis and setup break even.
As usual with the sort of thing, will look to add at intervals, assuming I can get into setups that have a cost basis lower than this starter position.
Metrics:
BPE/Break Even: 47.75/share
Max Profit: 2.25 ($2.25)
ROC %-age at Max/50% Max: 4.71%/2.36%
Comments: Dabbling a smidge in the leveraged ETF due to its high IV (56.3% 30-day).
Selling the -75 delta call against a one lot to emulate a 25 delta short put, but with "built-in" defense via the short call, which can be rolled down, out, or down and out to reduce cost basis and setup break even.
As usual with the sort of thing, will look to add at intervals, assuming I can get into setups that have a cost basis lower than this starter position.
Metrics:
BPE/Break Even: 47.75/share
Max Profit: 2.25 ($2.25)
ROC %-age at Max/50% Max: 4.71%/2.36%
Trade closed manually:
Money, taking, running where I can ... . Closed for a 48.54 credit. .79 ($79) winner.