NEW UCPTD Trade Alert - JPM - CCW Buy Back (profit)

All rights reserved - Core Position Trading, LLC - 2020
	NEW TRADE ALERT
Closed a Covered Call position prior to Expiration (Premium Profit)
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'.
Closed a Covered Call position prior to expiration
JP Morgan Chase
TIME AND DATE STAMP | .		June 29, 2020
My brief explanation why I ended this trade early
With Wall Street CLUBBING the bank stocks last week on the Fed's news about many banks's dividend NOT being stable ... JP Morgan got smacked as well and now that the stock is NOWHERE near the $106 strike price and the premium trading for a mere 0.15 (vs the 0.90 I received) I decided to buy back, keep the Krum and see if the markets buy back the banks they sold off ... little value play ... maybe JPM gets closer to $97/98 and we'll do it again ... EX-Date is Jul-02 so NO DIVIDEND is added to this trade.
The Headline Krum! (ACTUAL)
TRADE KRUM!	DAYS	Cash on Cash %	Annualized
$408.96	4	0.84%	76.37%
Max Profit Projections for this trade (EXPECTATION)
COMPANY	SYMBOL	SHARES	PRICE	TOTAL COST
JP Morgan Chase	JPM	500	$97.73	$48,865.00
EXPIRATION DATE	DAYS	STRIKE	OPTION	CoC % GAIN
Jul-10	4	$106.00	$0.97
DIVIDEND	DIVIDEND GAIN	OPTION GAIN	STOCK GAIN	TOTAL KRUM
$0.00	$0.00	$485.00	$4,135.00	$4,620.00
All calculations above are based on collecting [ Stock move + CCW + DIV if offered]
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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