NEW UCPTD Trade Alert - Option Buy Back - TQQQ - CSP

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NEW TRADE ALERT
Wednesday, December 11, 2019
Cash Secured Put Option Buy Back
Closed a Cash Secured Put position with TQQQ (TQQQ) this week
Brief Description of WHY I did this trade and my expectations for it
With so much profit in this option ($9.25 was paid, current price being $0.57) I just decided to take this off the board, pocket the gains and use this money for another stock or CSP. This was a very good use of the Cash Secured Put in nasty down days in the markets ... caught TQQQ's at its lows, doing an ATM CSP at support ... it rallied and luckily for me stayed in the 60's then heading into the 70's ... love this trade.
Trade Breakdown with the BUY BACK Calc
COMPANY	SYMBOL	SHARES	STOCK PRICE	STRIKE
TQQQ	TQQQ	100	$73.74	$55.00
PREMIUM RECV	BUY BACK PRICE	DIFFERENCE	CASH PROFIT	CoC% GAIN
$9.25	$0.57	$8.68	$868.00	15.78%
Always look at a companies chart ... it tells a story and that story could be UP or DOWN

                      

Education Corner
Great Covered Call video posted at
Cash Secured Put - Description -The cash-secured put involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock. The goal is to be assigned and acquire the stock below today's market price. Whether or not the put is assigned, all outcomes are presumably acceptable. The premium income will help the net results in any event. The investor is bullish on the underlying stock and hopes for a temporary downturn in its price. If the stock drops below the strike, the put may be assigned. That would allow the put writer to buy the stock at the strike price. The effective purchase would be even lower: strike price less the premium received. There are two principal risks. First, the stock might not only dip but plummet well below the strike price. The investor must be comfortable with the strike price as an acceptable long-term acquisition price, no matter how low the market goes. Source - https://www.optionseducation.org/strategies/all-strategies/cash-secured-put
Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its performance. I have risked my own money and am accountable for the trade results.
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