NEW UCPTD Trade Alert - WKHS - CCW BB (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
Workhorse Group
TIME AND DATE STAMP | .		December 7, 2020
My brief explanation why I ended this trade early
CLOSED 4 days early in hopes for a green day by Friday
With a mere 0.15 left on this CCW that I got $1.31 for I figured why not buy it back and hope to get a green day sometime this week and sell another 30 day collecting some more krums on these 1,000 shares ... sure, I could have waited but I might even turn a Dec-18 trade for some tight weekly cash ... you know Christmas gifts aren't cheap LOL!!!
The Headline Krum! (ACTUAL RESULT)
TRADE KRUM!	DAYS	Cash on Cash %	Annualized
$1,168.96	26	6.06%	N/A
Below are the details of the Buy Back
ORIGINAL PREM	BUY BACK PRICE	DIFFERENCE	PREMIUM PROFIT
$1.32	$0.15	$1.17	$1,168.96
Max Profit Projections for this trade (EXPECTATION)
COMPANY	SYMBOL	SHARES	PRICE	TOTAL COST
Workhorse Group	WKHS	1000	$19.28	$21,510.00
EXPIRATION DATE	DAYS	STRIKE	OPTION	CoC % GAIN
Dec-11	26	$25.00	$1.32
DIVIDEND	DIVIDEND GAIN	OPTION GAIN	STOCK GAIN	TOTAL KRUM
$0.00	$0.00	$1,320.00	$5,720.00	$7,040.00
All calculations above are based on collecting [ Stock move + CCW + DIV if offered]
Always look at a company's 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 Cash Secured Put - #1 - The stock moves HIGHER then my strike price and at or before expiration I can either let the option expire worthless as the stock will not be assigned to me considering it is now trading HIGHER then my strike. I can buy back the option cheaper and release the obligation, collecting the difference between what I received and what I paid to release the obligation.
I could manage this Cash Secured Put - #2 - The stock dips below my strike price and I'm assigned the shares OR I can buy back the option prior to expiration, most likely paying more for the option then I was paid, losing money but not being assigned the shares.
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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