NEW UCPTD Trade Alert - UPRO - Cash Secured Put

All rights reserved - Core Position Trading, LLC - 2020
	NEW TRADE ALERT
Cash Secured Put Trade opened using a Standard Covered Call Strategy
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/trade. Think of it like this, I'm 'Showing you the World thru my Eyes'.
NEW Cash Secured Put position was opened on
UPRO
TIME AND DATE STAMP | .		Wednesday, May 27, 2020
Brief Description of WHY I did this trade and my expectations for it
Week 4 - basically pasting from the email I sent earlier - I'm not feeling this market continues higher in the short term ... China is back in the news, Trump is going after the FAANG stocks for his social media, the press out of Minneapolis and with India's news of record highs with COVID ... and more news outlets constantly reminding us that the unemployment numbers are far worse than they expected ... I'm thinking I want more flexibility with a CSP. I would rather commit to buying someone's shares at $40 (little bit of downside with the 0.88 cush ... then if the markets get seriously sideways next week I can use exit strategies to try to keep producing credits. Should I be wrong (trust me, no crystal ball here) I collect about $1.40 prem, not being assigned, we move on!
Trade Breakdown with the BUY BACK Calc
COMPANY	SYMBOL	SHARES	STOCK PRICE	STRIKE
UPRO	UPRO	1000	$41.00	$41.00
PREMIUM RECV	BUY BACK PRICE	DIFFERENCE	CASH PROFIT	CoC% GAIN
$1.40	$0.00	$1.40	$1,400.00	3.41%
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 preformance. I have risked my own money and am accountable for the trade results.
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