| All rights reserved - Core Position Trading, LLC-2022 | ||||
 | NEW CCW TRADE | |||
| Covered Call Trade opened using a CCW + DIV Capture | ||||
| NEW Covered Call position was opened on | ||||
| TIME AND DATE STAMP | Friday, January 21, 2022 | |||
Citigroup |  | |||
| 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 |
| Feb-18 | $62.50 | $2.76 | 300 | $501.00 |
| $501 POSSIBLE PROFIT IS I DO NOT HAVE I COLLECT THE DIVIDEND AND HAVE MY SHARES TAKEN - 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 - Citigroup is trading such that when I ran the number I could make 2% in 10 days if shares are taken for the div ... if they are not I still collect a decent 2.6% profit ... if Im stuck with the shares after all this the charts suggest its more oversold and will trade sideways to higher. We will see but i totally expect my shares to be taken | ||||
| WHEN TRADE CLOSES - I explain my thoughts on how this closed out. | ||||
| Trade is OPEN - I will add commentary when this trade closed | ||||
| THIS TRADE TRADE BEGINS AND ENDS | ||||
| 28 | January 21, 2022 | February 18, 2022 | ||
| MAX PROFIT STOCK MOVE + PREMIUM + DIVIDEND | ||||
| MAX PROFIT | STOCK GAIN | PREMIUM | DIVIDEND? | CASH ON CASH % |
| $501.00 | -$480.00 | $828.00 | $153.00 | 2.61% |
| Max Profit means that I make all of this and my shares have been taken. | ||||
| DETAILED TRADE INFORMATION | ||||
| COMPANY | SYMBOL | SHARES | PRICE@TRADE | TOTAL COST |
| Citigroup | C | 300 | $64.10 | $19,230.00 |
| EXPIRATION DATE | DAYS | STRIKE | OPTION | OPTION GAIN |
| Feb-18 | 28 | $62.50 | $2.76 | $828.00 |
| DIVIDEND | DIVIDEND GAIN | STOCK GAIN | CoC % GAIN | TOTAL KRUM |
| $0.51 | $153.00 | -$480.00 | 2.61% | $348.00 |
| All calculations above are based on collecting [ Stock move + CCW + DIV if offered] | ||||
| Downside Protection summary (if this trade goes bad) | ||||
| CURRENT STOCK PRICE | STRIKE PRICE | D/P PRICE | $ PROTECTION | % PROTECTION |
| $64.10 | $62.50 | $60.83 | $3.27 | 5.10% |
| Breakeven price? (Stock Price - Prem - Div = Downside breakeven Price) | $60.83 | |||
| What's the expected move in the stock? | ||||
| Current Stock Price | Implied Volatility | Imp Vol (+) | Imp Vol (-) | DELTA |
| $64.10 | 22.07% | $71.17 | $57.03 | 0.4783 |
| Delta = the expected % chance the stock gets to the Strike | 0.4783 | |||
| $71.17 | ||||
| $64.10 |  | With Implied Volatility being 0.11035% to reach $71.173435 in this 28 day period, with this Covered CallStrike Im hoping the stock moves just 0.135310998439938% of that 0.2207% Implied Volatility | ||
| $57.03 | ||||
| What is Implied Volatility? - Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. - source: Zacks Investment Research | ||||
| 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 | ||||
| © 2022 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 | $60.83 | |||
| 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. | ||||
| © 2022 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved | Disclaimer | |||
