| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW CCW TRADE | ||||||||
| STANDARD COVERED CALL TRADE IS NOW | OPEN | ||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| I WAS ASSIGNED THESE SHARES VIA (CSP) CASH SECURED PUT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | Verify-CHRD | ||||||||
| YES, THE EX-DIVIDEND DATE IS DURING THIS TIMEFRAME | |||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 15 | May 11, 2023 | May 26, 2023 | |||||||
VLO |  | TIME AND DATE STAMP | |||||||
| Thursday, May 11, 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'. | |||||||||
| View Chart-CHRD | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today, using my own (1000) shares of VLO (ticker: VLO) when the stock was trading for $110.64 a share I Sold (10) Covered Call contract(s) for the May-26-2023 Expiration Date, $117.00 Strike Price for a Premium of $1.05 | |||||||||
| I own these shares with an original cost basis of $129.00 | |||||||||
| PREMIUM ONLY TRADE | |||||||||
| Because I received my shares through a CSP much higher, if my shares are taken I will not make any money on the sale of the shares at this strike price. | |||||||||
| PROJECTED PROFIT POTENIAL (STOCK MOVE + CCW PREM + DIV) | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $110.64 | May-11 | $1.05 | 10 | ||||||
| Strike Price | Expire | Days | Possible Dividend | ||||||
| $117.00 | May-26 | 15 | $1.02 | ||||||
| Verify-CHRD | |||||||||
This projected profit outcome includes a stock move + covered call premium collection and if a dividend is during this timeframe, add that. | Projected Cash Flow | ||||||||
| $2,070.00 | |||||||||
| WHY I OPENED this CCW on > VLO > Feeling that I need to make some money with these 1,000 shares I'm going to go ahead and write this deep out of the money covered call the $117 strike and try to pick up both the $1 dividend and not have my shares taken away I need to manage this trade because my cost basis on the shares equals $129 if my Shares are taking away I will lose money on this trade so I will be managing this trade hopefully the $117 strike is out just enough or even a dividend capture run in the stock won't challenge my strike price> as always, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| WHATS THE CASH ON CASH PERCENTAGE GAIN | |||||||||
| NOTE: This is a Premium only trade (for the most part) because if my shares are taken/assigned I will not make anything on the stock sale. | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $110.64 | $117.00 | $1.05 | 10 | ||||||
| Premium Only? | CoC% | Share Taken? | DO NOT MEET 3% GOAL | ||||||
| $1,050.00 | 0.95% | EVEN | |||||||
| POSSIBLE OUTCOMES FOR THIS TRADE | |||||||||
| 1) CANT NOT LET THIS HAPPEN! | |||||||||
| Projected Cash Flow | |||||||||
| 2) CANT NOT LET THIS HAPPEN! | |||||||||
| Projected Cash Flow | |||||||||
| 3) Covered Call - if shares are not taken at Expiration, option expires worthless I make just $1.05 per share, or 0.94% | |||||||||
| Projected Cash Flow | $2,070.00 | ||||||||
| General plan for my Covered Call Write Cash on Cash % investments > I like to generate a 3% Cash on Cash return on my money invested ... depending on the timeframe ... 1 week, 1% is ok but if 30 days I want more like 3 to 4% preferred | |||||||||
| MY COST BASIS ON THESE SHARES | |||||||||
| Cost Basis - shares | Acquired? | Shares | Total Cost | ||||||
| $129.00 | Assigned (CSP) | 1000 | -$129,000.00 | ||||||
| WOULD I SUGGEST THIS TRADE? | |||||||||
| VLO is a HIGH TO MODERATE (RISK LEVEL 7|8|9) WITH HIGH VOLILITY and only the well experienced options trader should get involved IF you're asking me. VLO ... so be careful but if you do trade this stock know that the premiums will pay you well for your efforts. I can help guide you through a trade if you have questions later | |||||||||
| ___________________________________________________________________________________ | |||||||||
| Trading stocks and options have risk. Required reading prior to placing money at risk with options is the ODD which is posted below. "The Characteristics & Risks of Standardized Options" Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange traded options. | |||||||||
| 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. | |||||||||
| Disclaimer - Yes - at the time of this posting I do own shares. That could mean in my taxable , non-taxable accounts or both. I am by no means recommending this stock for purchase | |||||||||
| Feel free to email me if you have questions and/or concerns about this post - corepositiontrading@gmail.com - I usually will get back with you in 48 hours or sooner | |||||||||
| © 2023 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved | Disclaimer | ||||||||
