NEW UCPTD Trade Alert - WYNN - CCW Buy Back (Premium 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
Wynn Resorts
TIME AND DATE STAMP | .		September 8, 2020
My brief explanation why I ended this trade early
Buying back this option early (expires this Friday) with a plan
WYNN was trading around $78/79 when I placed this $85 strike trade 29 days ago and the option actually expires this coming Friday ... with the stock trading at $83x and the option for which I received $4 trading 1/2 of what I paid ... I could buy back this option at a profit and if my hunch is right, we could get a couple green days and I can sell the $90 strike, 30 days and collect another $5 premium ... keeping this trade rolling for more credits even though Im down on the stock (CB $97) ... I will consider this trade tomorrow ... but the plan will be to sell a call soon. Looking at the chart below... we could be SELLING a Call right into some positive stock movement, again, if my hunch is right.
The Headline Krum! (ACTUAL RESULT)
TRADE KRUM!	DAYS	Cash on Cash %	Annualized
$198.96	29	N/A	#VALUE!
Below are the details of the Buy Back
ORIGINAL PREM	BUY BACK PRICE	DIFFERENCE	PREMIUM PROFIT
$4.00	$2.00	$2.00	$198.96
Max Profit Projections for this trade (EXPECTATION)
COMPANY	SYMBOL	SHARES	PRICE	TOTAL COST
Wynn Resorts	WYNN	100	$79.80	$34,090.00
EXPIRATION DATE	DAYS	STRIKE	OPTION	CoC % GAIN
Sep-11	29	$85.00	$4.00
DIVIDEND	DIVIDEND GAIN	OPTION GAIN	STOCK GAIN	TOTAL KRUM
$0.00	$0.00	$400.00	$520.00	$920.00
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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