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 | NEW CCW TRADE | |||
| Covered Call Trade opened using a Standard Covered Call (~30d) | ||||
| NEW Covered Call position was opened on | ||||
| TIME AND DATE STAMP | Friday, Dec 17, 2021 | |||
Southern Co. |  | |||
| 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'. | ||||
| BASIC COVERED CALL TRADE DETAILS (If Shares Taken) | ||||
| EXPIRE | STRIKE | PREMIUM | SHARES | $ PROFIT |
| Jan-14 | $69.00 | $0.55 | 500 | $1,125.00 |
| REMEMBER, ALL CALCULATIONS FOR THIS TRADE ARE BASED ON WHERE THE STOCK WAS TRADING WHEN THIS TRADE WAS PLACED AND *NOT* MY STOCK PURCHASE PRICE. | ||||
| BRIEF EXPLANATION WHY I DID THIS TRADE | ||||
| MINDSET WHEN OPENED - Below I explain why I did this trade | ||||
| CCW - Southern Co is a Buy & Hold stock for me where I hold shares for some stock appreciation and covet its dividend. During the companies off events months I like selling covered calls when the stock is at the top of its trading range ... SO @ $67.30 seems Over Bought with an RSI 72 so this is a good time to sell the OTM CCW with the hopes the stock never challenges my strike price, close this trade profitable and still own the shares. I commonly refer to this as my 'Double my Dividend' using CCW trade and expect to NOT have my shares taken. | ||||
| WHEN TRADE CLOSES - I explain my thoughts on how this closed out. | ||||
| Trade is OPEN > will add commentary when Closed | ||||
| THIS TRADE TRADE BEGINS AND ENDS | ||||
| 28 | December 17, 2021 | January 14, 2022 | ||
| PREMIUM PROFIT ONLY (shares are not taken) | ||||
| PREMIUM ONLY | OPTION GAIN | DIVIDEND? | CASH ON CASH % | |
| $275.00 | $275.00 | $0.00 | 0.82% | |
| Premium Only means I didn't have my shares taken. Trade expired or I bought back | ||||
| DETAILED TRADE INFORMATION | ||||
| COMPANY | SYMBOL | SHARES | PRICE@TRADE | TOTAL COST |
| Southern Co. | SO | 500 | $67.30 | $33,650.00 |
| EXPIRATION DATE | DAYS | STRIKE | OPTION | OPTION GAIN |
| Jan-14 | 28 | $69.00 | $0.55 | $275.00 |
| DIVIDEND | DIVIDEND GAIN | STOCK GAIN | CoC % GAIN | TOTAL KRUM |
| $0.00 | $0.00 | N/A | 0.82% | $275.00 |
| All calculations above are based on collecting [ Stock move + CCW + DIV if offered] | ||||
| What's the expected move in the stock? | ||||
| Current Stock Price | Implied Volatility | Imp Vol (+) | Imp Vol (-) | DELTA |
| $67.30 | 22.07% | $74.73 | $59.87 | 0.3507 |
| Delta = the expected % chance the stock gets to the Strike | 0.3507 | |||
| $74.73 | ||||
| $67.30 |  | With Implied Volatility being 0.11035% to reach $74.726555 in this 28 day period, with this Covered Call Strike I'm hoping the stock moves just 0.0850899702823178% of that 0.2207% Implied Volatility | ||
| $59.87 | ||||
| Disclaimer - Yes - at the time of this posting I do own shares. I am by no means recommending this stock for purchase | ||||
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