NEW UCPTD Trade Alert - RKT - Cash Secured Put

 

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
RocketMortgage
TIME AND DATE STAMP | .		Thursday, September 3, 2020
My brief explanation why I ended this trade early
Taking advantage of a seriously DOWN DAY ... reference my email this morning (Sep-3) on Rocket Mortgage and how I feel this is a perfect opportunity to slip in and do this Cash Secured Put (CSP) for a stock that I actually want to own ... I'm not coming this a NEW Wheel ... but it could be ... for $37,500 invested, this $4,798 Krum! pays me 12% Cash on Cash % gain in 43 days ... will take that anytime on what I believe is a good company ... a company's stock I want to own.
The Headline Krum!
TRADE KRUM!	DAYS	Cash on Cash %	Annualized
$4,798.96	43	12.80%	N/A
Max Profit Projections for this trade (EXPECTATION)
COMPANY	SYMBOL	SHARES	PRICE	TOTAL COST
RocketMortgage	RKT	1500	$25.00	$37,500.00
EXPIRATION DATE	DAYS	STRIKE	OPTION	CoC % GAIN
Oct-16	43	$25.00	$3.20	12.80%
DIVIDEND	DIVIDEND GAIN	OPTION GAIN	STOCK GAIN	TOTAL KRUM
N/A	N/A	$4,800.00	N/A	$4,800.00
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.
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