| All rights reserved - Core Position Trading, LLC-2023 |
 | CLOSEOUT TRADE |
| |
| POOR MAN'S COVERED CALL POSITION CLOSEOUT | CLOSEOUT |
| | | | |
| A Poor Man's Covered Call (PMCC) is a long call diagonal debit spread that is used to replicate a covered call position. An investor will purchase a LEAPS Call Option In lieu of purchasing the shares, using the LEAP Call Option as protection, then Writing near-term Cover Calls (CCW) |
| | | | |
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT |
| | | | |
| THIS TRADE IS CLOSED, SHARES SOLD OR TAKEN |
| | | | |
| WINNER | $1,125.00 |
|
| TIME AND DATE STAMP |
| Wednesday, May 24, 2023 |
|
| DISCLAIMER: This trade is based on this date. I'm not suggesting a move up or down. I'm showing my trade that I have already done. I'm not recommending this stock as a purchase/trade. Think of it like this, I'm 'Showing you the World thru my Eyes'. |
|
 |
|
| THIS PMCC TRADE ENDED IN A PROFIT |
| INVESTED | LEAPS SALE | LEAPS | CoC% | CoC$ |
| -$28,575.00 | $31,250.00 | 5 | 8.84% | $2,525.00 |
| CCW | CCW PREM |
| 1 | -$1,400.00 |
| TOTAL PROFIT |
| 3.94% | $1,125.00 |
|
| THIS TRADE LASTED (8) DAYS 3.94% ON CASH INVESTED |
| 8 | May 16, 2023 | May 24, 2023 |
|
| DETAILS FOR THIS COVERED CALL TRADE ARE AS FOLLOWS |
| I went ahead and closed this trade early because I believe with 36 days left I could take this money invested and make MORE THAN the $1,400 that I would make if I let this option go to expiration ... so that's the goal ... buy back this CC option ... pocket this profit then use this money to then generate more money with this investment (ie, money) I would have made ... probably using a Cash Secure Put on another stock |
|
| Details LEAP Call option I'm using for this PMCC |
| SYMBOL | LEAP | STRIKE | PAID | INVESTMENT |
| CVX | Jan2024 | $97.50 | $57.15 | -$28,575.00 |
| WHY I BOUGHT this LEAPS Call Option > Believing that most of the oil stocks are trading near support this is a opportunity for me to use a poor man's covered call using one of the biggest oil companies and when running this through the initial trade setup I find that the time value on this leap call option I purchase is less than 1% in my very first trade is very favorable |
| CONTRACTS | 5 | DELTA | .954 | YES |
| PMCC Golden Rule - BUY the ~80 or greater DELTA |
|
| How is the LEAP Call Option preforming at this moment |
| As of this post, this is the MID PRICE VALUE for my LEAP Call Option |
| WHAT I PAID | CURRENT MID PRICE | .+/- % |
| $57.15 | $62.20 | 8.84% |
