NEW UCPTD Trade Alert - ROKU - Covered Call

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DISCLAIMER: This trade is based on this date. I'm not suggesting a move up or down. I'm showing my trade that I have already done. I'm not recommending this stock as a purchase. Think of it like this, I'm showing you the world thru my eyes.
NEW TRADE ALERT
Monday, January 6, 2020
Covered Call Trade opened using a Standard Covered Call Strategy
NEW Covered Call position with Roku Inc. (ROKU) this week
TRADE KRUM! (see details below)		DAYS	Cash on Cash %	Annualized
$1,377.00		32	9.55%	108.90%
Brief Description of WHY I did this trade and my expectations for it
Right now ROKU is moving +$5.80 today on what seems to be good news for its ROKU TV product ... I'm going to use this opportunity to collect a nice premuim on today's move thinking that it might rest a bit over the next couple days as the Iran news might heat up ... I'm now IN THE MONEY on my stock purchase price so this is all gravey for me ... I totally expect this to NOT expire over $150 and will BB this option cheaper ... but if it does I like the CoC % gain and we move on!
Trade Breakdown with the 'Krums Calc'
COMPANY	SYMBOL	SHARES	PRICE	TOTAL COST
Roku Inc.	ROKU	100	$144.23	$14,423.00
STRIKE	OPTION	OPTION GAIN	STOCK GAIN	TOTAL KRUM
$150.00	$8.00	$800.00	$577.00	$1,377.00
DIVIDEND		CASH ON CASH KRUM %		ANNUALIZED GAIN
$0.00	$0.00	9.55%		108.90%
No, they do not offer investors a dividend.
Current Stock Price	Implied Volatility	Imp Vol (+)	Imp Vol (-)	DELTA
$144.23	60.42%	$187.80	$100.66	0.44
		$187.80
$144.23			With Implied Volatility being 0.3021% to reach $187.801883 in this 32 day period, with this Covered CallStrike Im hoping the stock moves just 0.262094453303751% of that 0.6042% Implied Volatility
		$100.66
Important Trade Details
Trade details - 1 contract(s), Strike Price $150 , Premium of $8, with a Feb-7th expiration date receiving a total credit of $800 per share
Already had 100 shares for $141.07 , $14107 , total investment.
The will be a 32 day trade
This Out the Money (OTM) Covered Call trade has a potential Cash On Cash Return of :
CC - If shares are taken away $13.77 per share, or 9.55 %- Annualized 108.9%
CC - If my shares are not taken away $8 per share, or 5.55 %- Annualized 63.27%
Dividend during this 32 day period? No EX-Dividend date is - N/A- N/A, $0
Earnings Report during this 32 day period? No Earnings Report is (~) date of - N/A- N/A
Did this trade meet the Golden Rules?
SP500 type	Earnings?	Dividend	Volume?	Open Interest?
Big enough for me	No Earnings	No they do not	Yes they do	Yes > 100
read above ... nothing more to add here :) ROKU is a high flyer that could rocket or tank ... playing it for the Prem's and tight 32 day trades. Wish me luck :/
This Cash Secured Put trade has 3 typical outcomes
CC - Outcome #1 - the stock moves above my strike price of $150 at expiration, I have my shares taken away and I make MAX gain for this trade 9.55% Cash on Cash investment for this 32 day trade
CC - Outcome #2 - the stock does not move above my strike price of $150 at expiration, I do not have my shares taken away and I make only the option premium of $8 per share for this 32 day trade. I keep my shares.
Further research with - Using charts for technical analysis, Dividend information and Earnings Report Date
RSI, SUPPORT LINES	KELTNAR, OBV		DIVIDEND	EARNINGS REPORT
View Chart-ROKU	View Chart-ROKU		Verify-ROKU	Verify-ROKU
			No	No
			$0.00
Always look at a companies chart ... it tells a story and that story could be UP or DOWN
How I could 'Manage' this trade should the stock rise or fall prior to expiration
I could manage this Covered Call - #1 - The stock moves and closes on expiration above my strike price. My shares will be given assigned to the Call Buyer, I will be given cash for my shares (strike price)
I could manage this Covered Call - #2 - The stock does not close at or above my strike by expiration, I will likely not have my shares taken from me. I keep my shares, I keep the Covered Call premium. Trade ends. Shares become available to trade.
I could manage this Covered Call - #3 - Regardless of where the stock moves during the Covered Call timeframe, a news event or Ex-Date prompts the Call buyer or market maker to take my shares before expiration. Most common situation, the stock has moved up and now trades near or above the strike price making it profitable to exercise the Call option early for the Call Buyer to collect the dividend.
Education Corner
Great Covered Call video posted at
Covered Call - Description - A covered call is a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other securities. ... writing (i.e. selling) a call generates income in the form of the premium paid by the option buyer. Source - https://en.wikipedia.org/wiki/Covered_call
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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