| 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
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| TIME AND DATE STAMP | . | July 23, 2020 | |||
| My brief explanation why I ended this trade early | ||||
| Time to do another ... with my JPM strike being $99 and it trading at $98.75 ... my shares might be taken which isn't a bad thing bad with no earnings and the dividend being delivered ... I can write another 30 day, OTM strike and profit some more ... and that's the plan ... simple as that. | ||||
| The Headline Krum! (ACTUAL) | ||||
| TRADE KRUM! | DAYS | Cash on Cash % | Annualized | |
| $638.96 | 17 | 1.35% | 29.04% | |
| Max Profit Projections for this trade (EXPECTATION) | ||||
| COMPANY | SYMBOL | SHARES | PRICE | TOTAL COST |
| JP Morgan Chase | JPM | 500 | $94.47 | $8,496.00 |
| EXPIRATION DATE | DAYS | STRIKE | OPTION | CoC % GAIN |
| Jul-24 | 17 | $99.00 | $1.90 | |
| DIVIDEND | DIVIDEND GAIN | OPTION GAIN | STOCK GAIN | TOTAL KRUM |
| $0.00 | $0.00 | $950.00 | $2,265.00 | $3,215.00 |
| 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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