... for a 27.54 debit. Comments: High IVR/IV at 97.9/81.9% and a monthly dividend to take advantage of. However, the monthly dividend has varied widely -- with the last two distributions paying .36 (February 8th) and .73 (March 8th) with an annual dividend of 8.72 (.73 average monthly) (31.7% annualized as a function of current price). I'm primarily looking to...
... for a 60.31 debit. Comments: For lack of something better to do, looking to grab the March dividend here, which should be in the vicinity of .60/share. The top 5, options liquid dividend-yielding ETF's are: EWZ (10.90%) (paid twice a year in June and December); EFA (5.27%) (paid twice a year in June and December); XLE (3.78%) (paid in March, June,...
... for a 85.43 debit. Comments: Looking to attempt to grab the March dividend, which has been averaging around .80 over the past four distributions. Metrics: Buying Power Effect/Break Even/Cost Basis in Shares: 85.43 Max Profit: 2.57 ($257) ROC at Max (ex. dividend): 3.01% ROC at Max (w/dividend): 3.94% (assuming an .80 distribution) ROC at 50% Max (ex....
Comments: Doing something long-dated here in 20 year+ paper to get in at a cost basis that is coincident with a 10 year yield at 4.10%. Metrics: Buying Power Effect/Cost Basis: 91.40/contract Max Profit: 8.60 ($860)/contract ROC at Max as a Function of Buying Power Effect: 9.41% (Excluding Dividends) ROC at 50% Max as a Function of Buying Power Effect: 4.70%...
Price is landing on an important support area. This a gold and copper mining company, the stock pays 4.5% dividend yield. I see gold going up in medium term, next year I believe gold will be trading around 2200 and will pull up this stock. I own this stock for the dividends and I believe is going to hit the 45 next year. I'm collecting the dividends while I'm...
Buy low, sell high. STILL in this ETF. I bought to close my last covered call for a small gain. This one only has 25 days until expiration and 2 days of theta. Plus if I get called away here, that would be jamming. AND paid .25!
Comments: This started out as an October 20th 76 short put (See Post Below) and then proceeded to crater quite massively, resulting in early, random assignment of shares. In an attempt to get my cost basis immediately within earshot of where the underlying is currently trading, I went extremely long-dated and sold the Jan '25 77 for 7.05 against my one lot,...
In the absence of some kind of face-ripping rally, I'm going to be assigned shares in TLT here shortly, starting with what began as an October 20th 93 short put and an October 20th 89 short put. Here, I'm using short puts as an acquisitional tool, attempting to acquire shares in multi-year weakness, after which I'll proceed to cover the shares with short calls. ...
... for a 31.42 debit. Comments: Going covered call (neutral to bullish assumption) on this weakness with a 30 delta short call in the November 17th expiry. Max Profit: 3.58 ($358) Break Even: 31.42/share ROC %-age at Max As a Function of Buying Power Effect: 11.39% ROC %-age at 50% Max: 5.70%
I have some SHARES of this bad boy. Cost basis $15.27. Figured I would sell on an up day AT a resistance of some kind and get paid an extra 2%. Plus if I get called away here = happy dance!
Just bought uncovered puts exp 10/27 strike 2.5. I expect a bounce of the trendline and keep the puts premium when expire worthless. However I don't mind if they get assigned. I would get stocks very cheap price and then I would sell covered calls. I chose this stock because its options are sell at a very attractive price.
I'm already in. Just looks like its consolidating and building pressure! :-)
... for a 311.89 debit. Comments: Since I still have QQQ short delta hedge on and no long deltas on against, selling a May 12th 326 covered call here by buying a one lot and selling a 40 delta call against, giving me 60 long delta as a hedge against my QQQ long put diagonal. I could also do this with a long call diagonal with similar delta metrics (i.e., buy a...
Comments: Updating to bring this more to the top of my ideas page ... . As of the last roll: Cost basis of 301.72 in my stock with 6.31 of extrinsic in the short call. (See Post Below). Will generally mechanically roll the short call at mopex until my cost basis is below current price, potentially rolling it down further if price pulls too far away from the...
Selling the regular April $29 covered call. Using the premium to buy a 25.50 April put. This creates an unlosable position into April. My DCA is 23.95 ish. On 4000 shares I get paid $1,200 for this trade. And either WIN or WIN :-) SWEET.
Do you ... fade this move? Pictured here is a long call diagonal with the long leg out in June at the +90 delta, and the short leg out in April at the -30 to synthetically emulate the net delta of a covered call position (i.e., long stock/short call) where the short call of the covered call setup would be at the -40 delta strike. Metrics: Assumption: Neutral*...
Testing assorted points placed on chart to represent covered calls I'm taking. Each point is the break-even price of each position. By hovering over a point, details of each trade will be given. Some points are connected to other points. These lines are Rollout trades where new calls were sold.
Comments: The one rung I couldn't strike improve very much with duration, so opted to let this rung go to assignment. I collected a total of 10.46 in credits (See Post Below), so the way I generally look at assignments is that the credits collected of10.46 ($1046) represent a realized gain. Unfortunately, the difference between the strike price (300.00) and...