| All rights reserved - Core Position Trading, LLC-2021 |
 | NEW PMCC TRADE |
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| Covered Call Trade opened using a Standard Covered Call (~30d) |
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| NEW Poor Man's Covered Call position was opened on |
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| TIME AND DATE STAMP | | Tuesday, November 30, 2021 |
PayPal | | |
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| 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'. |
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| Why did I use stock for a PMCC trade? |
| MINDSET WHEN OPENED - Below I explain why I did this trade |
| PMMC - PayPal had earnings and Wall Street did some downgrades for which caused the stock to fall some -40% from its highs ... this seems a bit much for one of the most cutting edge, high profile banks with growth ... this is a value play in my mind |
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| My brief explanation for this trade and how it closed |
| MINDSET WHEN OPENED - Below I explain why I did this trade |
| PayPal just seems to be sold off a bit much ... so I'm going to start some 30 Delta 30 day Covered Calls making sure I use 30 OR LESS Deltas to ensure I make a profit while I feel the stock moves higher and my near term 30 day CCW strike is not challenged ... this CCW strike actually has a 27 Delta and pays a decent 1.86% which is perfect for such an OTM Strike. |
| WHEN TRADE CLOSES - I explain my thoughts on how this closed out. |
| Trade is OPEN - I will add commentary when this trade closed |
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| This (31) day trade begins and ends for the dates below |
| 31 | November 30, 2021 | December 31, 2021 |
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| PREMIUM PROFIT Only |
| PREMIUM ONLY | CASH ON CASH % MONEY INVESTED | |
| $343.00 | 3.69% |
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| Details of the LEAP Call option I'm using for this PMCC |
| SYMBOL | LEAP | STRIKE | PAID | INVESTMENT |
| PYPL | Jan2023 | $95.00 | $93.06 | -$9,306.00 |
| PMMC - PayPal had earnings and Wall Street did some downgrades for which caused the stock to fall some -40% from its highs ... this seems a bit much for one of the most cutting edge, high profile banks with growth ... this is a value play in my mind |
| CONTRACTS | 1 | DELTA | 0.95 |  |
| PMCC Golden Rule - BUY the ~80 or greater DELTA |
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| Details of this 30 Day CCW / ~30 DELTA Strike | $343.00 |
| EXPIRATION DATE | CONTRACTS | STRIKE | PREMIUM | CASH PROFIT |
| Dec-31 | 1 | $200.00 | $3.43 | $343.00 |
| PayPal just seems to be sold off a bit much ... so Im going to start some 30 Delta 30 day Covered Calls making sure I use 30 OR LESS Deltas to ensure I make a profit while I feel the stock moves higher and my near term 30 day CCW strike is not challenged ... this CCW strike actually has a 27 Delta and pays a decent 1.86% which is perfect for such an OTM Strike. |
| DAYS | 31 | DELTA | 0.2716 | |
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