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 | NEW CCW TRADE | |||
| Covered Call Trade opened using a CCW + DIV Capture | ||||
| NEW Covered Call position was opened on | ||||
| TIME AND DATE STAMP | Friday, February 11, 2022 | |||
3M 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'. | ||||
| BRIEF EXPLANATION WHY I DID THIS TRADE | ||||
| MINDSET WHEN OPENED - Below I explain why I did this trade | ||||
| CCW - 3M hits my CCW+DIV Capture radar and acting on the hunch I bought 200 shares and sold the ITM Mar-11 ... I feel MMM is or will have a little push higher for the dividend run this company will experience because of its high dividend. I hope my shares are taken, if not will manage the trade as such I wanted more in premium but the stock started to go away from me so I took what I could get here ... its still a CoC% gain I will take IF my shares are taken as the dividend will cause my shares taken just next week. |
| DETAILED TRADE INFORMATION | ||||
| COMPANY | SYMBOL | SHARES | PRICE@TRADE | TOTAL COST |
| 3M Co | MMM | 200 | $160.50 | $32,222.00 |
| EXPIRATION DATE | DAYS | STRIKE | OPTION | OPTION GAIN |
| Mar-11 | 28 | $160.00 | $3.50 | $700.00 |
| DIVIDEND | DIVIDEND GAIN | STOCK GAIN | CoC % GAIN | TOTAL KRUM |
| $1.48 | $296.00 | -$100.00 | 2.40% | $600.00 |
| All calculations above are based on collecting [ Stock move + CCW + DIV if offered] | ||||
| 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. |
| 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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