| All rights reserved - Core Position Trading, LLC-2021 | ||||
 | NEW CCW TRADE | |||
| Covered Call Trade opened using a Standard Covered Call (~30d) | ||||
| NEW Covered Call position was opened on | ||||
| TIME AND DATE STAMP | Thursday, December 2, 2021 | |||
Rocket Group |  | |||
| 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'. | ||||
I CAN NOT HAVE MY SHARES TAKEN SO THIS TRADE IS 100% PREMIUM ONLY
I WILL ROLL THIS OPTION IF IT MOVES PAST
MY $17 STRIKE.
| BASIC COVERED CALL TRADE DETAILS (If Shares Taken) | ||||
| EXPIRE | STRIKE | PREMIUM | SHARES | $ PROFIT |
| Dec-23 | $17.00 | $0.30 | 3500 | |
| THIS TRADE TRADE BEGINS AND ENDS | ||||
| 21 | December 2, 2021 | December 23, 2021 | ||
| BRIEF EXPLANATION WHY I DID THIS TRADE | ||||
| MINDSET WHEN OPENED - Below I explain why I did this trade | ||||
| CCW - Looking to keep these 3,500 shares of RKT working while I continue to battle back from a higher stock purchase price (cost basis is closer to $19.50) ... | ||||
| WHEN TRADE CLOSES - I explain my thoughts on how this closed out. | ||||
| Trade is OPEN - I will add commentary when this trade closed |
| PREMIUM PROFIT ONLY (shares are not taken) | ||||
| PREMIUM ONLY | OPTION GAIN | DIVIDEND? | CASH ON CASH % | |
| $1,050.00 | $1,050.00 | $0.00 | 1.91% | |
| How I could 'Manage' this trade? | ||||
| 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. | ||||
| Selling Premium Education Corner | ||||
| 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 own shares. I am by no means recommending this stock for purchase | ||||
| Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy. | ||||
| Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com | ||||
| © 2021 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved | Disclaimer | |||
| This area below is used ONLY IF I purchased a Protective Put as a part of this trade. The combination of the Covered Call Write CREDIT and the Protective Put purchase DEBIT are calculated as one trade. | ||||
| Covered Call with a Protective Married Put (Collar) | ||||
| Price @ trade | CCW Strike | CCW Prem | Put Strike | Put Cost |
| N/A | N/A | N/A | ||
| Option Profit/Cost/Total | #VALUE! | $0.00 | ||
| Cost Breakdown for this insurance: | $0.00 | reducing my profit | #VALUE! | |
| Yes - I have purchased a protective put for this trade (details below) | ||||
| STRIKE | N/A | #REF! | ||
| STOCK PURCHASE $ | True downside protection for the CCW is | I tried to buy the Protective Put @ the downside protection price (not totally perfect) | ||
| PROTECTIVE PUT | $15.43 | |||
| Losing $ on stock purchase | Making money on the Protective Put | |||
| What is a Protective Put - A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of owning a stock or asset. The hedging strategy involves an investor buying a put option for a fee, called a premium. | ||||
| What is the Covered Call with a Married Put - A stock owner will SELL or Write a Covered Call and then BUY a Put options for downside protection. | ||||
| © 2021 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved | Disclaimer | |||
