NEW UCPTD Trade Alert - SBUX - Covered Call (2 days)

All rights reserved - Core Position Trading, LLC - 2020
	NEW TRADE ALERT
Covered Call + Dividend Capture 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'.
Covered Call position was open on
SBUX
TIME AND DATE STAMP | .		Friday, August 7, 2020
The trade idea and what is the expectation
SBUX 2 DAY TRADE ... don't get caught up in the total Krum of just $245 if my shares were taken ... now, that's a Krum and I'll take it but what I'm trying to do with this trade is apart of a BIGGER PLAN in the future ... yes, John has PLANS LOL! ... tomorrow is the EX-Date and I needed to own the shares today ... the plan, own the shares ... but then Write an ITM Covered Call to ENSURE the best chance of my shares being taken on Friday ... meaning, collect a premium GREATER THAN the Strike + Stock Price (ex: $75 strike, stock trading at $75.80 ... CC Premium was 0.90) ... so no one will take my shares for tonight's 0.41 dividend ... so I'll hold the shares ... tomorrow SBUX will trade -0.41 which might be MORE than $75 ... which then I will have my shares taken for a SUPER LOW RISK Krum! ... now, if SBUX trades UNDER $75, then I keep my shares, the 0.90 Prem and 0.41 Div ... we will probably sell a 30 day CCW because SBUX has NO events in the near term ... I do not think they report same store sales ... so I should be in the clear. The BIGGER PLAN is to do this with dividend payers that pay +$1 dividends for some serious Krums! Wish me luck!
Trade Breakdown with the BUY BACK Calc
COMPANY	SYMBOL	SHARES	STOCK PRICE	STRIKE
SBUX	SBUX	500	$75.82	$75.00
PREMIUM RECV	DIVIDEND	DIFFERENCE	CASH PROFIT	CoC% GAIN
$0.90	$0.41	$0.49	$245.00	0.65%
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
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 preformance. I have risked my own money and am accountable for the trade results.
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