... with a cost basis of 31.93. Notes: Another broken trade in which I took on shares. (See Post Below). Some work needs to be done on improving the 27 short call ... .
Good evening all, Our levels have stayed steady. I believe that the price will not move much the upcoming month. If you would like to add revenue to your positions sell covered calls and puts. You can collect a nice premium while we wait for movement later on.
I've been meaning to do a post for a very long time here on a do-it-yourself quasi-annuity via covered call, and here it is. To oversimplify things, most annuities involve you making an initial payment, after which you receive fixed payouts, generally represented by an annualized rate of return. Here, I look at modeling a do-it-youself annuity using a covered...
SQ is up over 165% from the coronavirus low, 100 is a nice round number near an ATH. Selling the July 100 covered call for $1.50
First off I was going to make this a private idea because it is long term.. and if you follow me then you know I DO NOT like long term predictions. Intra-day clues and signs are much more valuable to traders like me, but today's end was so crazy I thought it might be a move that is following a longer term trend. It definitely made me go "hmm". What Happened:...
... for a 66.40 debit. Metrics: Max Loss: 66.40 (assuming the stock goes to zero) Max Profit: 3.60 Return on Capital at Max: 5.42% Break Even/Cost Basis In Shares: 66.40 Notes: Selling nondirectional premium in the margin account, (See Post Below), but looking for a quickee dirtee in the IRA. The natural alternative is to sell the 70 put, paying 3.50, with a...
This is a continuation of long-running trade that I kicked the can on. (See Post Below). With price finishing the day wayyy below my 10 short put, I will find shares in my account next week via assignment. In anticipation of that occurring, I previously sold a February 21st 5.5 call and have a cost basis of 5.22. I'm fine with being called away at 5.50 should...
Posting a revised visual depiction of this trade (see Post Below) showing the 80 short call strike that covers the stock, plus the December 20th 115 short call I sold against on the post-earnings pop to $90 or so, along with my cost basis. With price breaking my short call here slightly, I may add short call to cut net delta in the position, particularly given...
I got this stock when it was assigned to me at a landed cost of $3.65 and today on this 20% pop I sold 6 strike calls for 60 cents so this either reduces my landed cost to $3.05 or gets me out at equal to $6.60 for very close to a 100% gain
Entered a position with the large gap down and apparent "trap" in the following days. Only long 100 shares, will look to add at the green levels and trade around a position. Selling the CC is over earnings if it gaps up and gets called away fine otherwise helps the DCA a little bit.
Multiple days of bullishness on ATVI bounce of around 15% from bottom. I sold one call and will sell the other after 1-2 more days of bullishness.
This is the covered call for the other half of my position on ATVI. It is trading into the 100 sma on the daily. May $57.50 for .54
... for a 3.22 debit. Max Profit: $78/contract Max Loss/Buying Power Effect: $322 per contract Break Even/Cost Basis: 3.22/share Notes: A speculative shot on a high implied volatility biotech underlying ... .
... for a 9.26/contract debit. Max Profit: $74/contract Max Loss: $926/contract Break Even/Cost Basis: 9.26/share Theta: 1.67 Delta: 23.56 Notes: Going directly to a monied covered call in this high implied volatility underlying (121%) with a mildly bullish delta metric. Now that I look at it, the 10 short put (25.78 delta) in October has a better max (1.03)...
... for a 10.02/contract debit. Max Profit: $98/contract Max Loss: $1002/contract Break Even/Cost Basis: 10.02/share Theta: 1.23 Delta: 46.78 Notes: High rank and implied (84/57). Going with the cost basis reduction setup without a timer on it ... .
Opened a 'poor mans covered call' on GLD. Going long on this alternative asset class to diversify the portfolio. My overall bias is higher gold based on the technical price trend since 2016 and expect we'll soon see a reversion towards the mean/median price range. Bought the OCT 112 CALL at 86 deltas, 105 days to expiration as a stock replacement for 8.12 and...
... for a 29.39/debit per one lot. Metrics: Max Loss: 29.39 per contract on setup Max Profit: 1.61 per contract on setup (5.48% ROC) Break Even: 29.39 on setup Delta: 37.54 Theta: 1.40 Notes: Roll the short call out on significant loss of value,* to maintain the desired net delta of the position, and/or to defend the break even. I would note a couple of...
Rather than just holding HPQ stock with hope that it may go higher this year, collecting a 2.5% yield while waiting, I instead plan to sell options premium this week against my $22 cost basis for a higher return on capital. Implied volatility on HPQ is over 30% and rising as we near the earnings report date of May 29 after the close. Of the past 8 quarterly...