| All rights reserved - Core Position Trading, LLC - 2020 | ||||
 | NEW TRADE ALERT | |||
| Cash Secured Put Trade opened using a Standard CSP 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 |  | |||
SIMO
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| TIME AND DATE STAMP | . | Monday, June 29, 2020 | |||
| My brief explanation why I ended this trade early | ||||
| AS YOU KNOW, SIMO has been on my radar once I noticed them on the TOP 30 Dashboard ... they trade in this amazing range (if you're asking me) and looking at the chart ... they always seem to rally then sell off to the Keltner Channel MID ... for 1/2 a year Wall Street will trade this range and it looks pretty darn bankable for me ... so I use this 52 day Cash Secured Put AT the MID (basically) for a little time to see if Wall Street does the same ... sell them off to the MID then rally them higher ... this 52 day trade would bring some 5.78% and if played the way I think ... I will NOT be assigned the shares and will have a chance to buy this back for a profit. IF I am assigned the shares ... I will write Covered Calls on the shares because a $45 cost basis looks like a good starting point. We will see. | ||||
| The Headline Krum! (ACTUAL) | ||||
| TRADE KRUM! | DAYS | Cash on Cash % | Annualized | |
| $778.96 | 52 | 5.78% | 40.56% | |
| Max Profit Projections for this trade (EXPECTATION) | ||||
| COMPANY | SYMBOL | SHARES | PRICE | TOTAL COST |
| SIMO | SIMO | 300 | $40.80 | $48,865.00 |
| EXPIRATION DATE | DAYS | STRIKE | OPTION | CoC % GAIN |
| Aug-21 | 52 | $45.00 | $2.60 | 5.78% |
| DIVIDEND | DIVIDEND GAIN | OPTION GAIN | STOCK GAIN | TOTAL KRUM |
| N/A | N/A | $780.00 | N/A | $780.00 |
| 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. | ||||
| Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com | ||||
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