| All rights reserved - Core Position Trading, LLC-2023 |
 | NEW PMCC TRADE |
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| STANDARD POOR MAN'S COVERED CALL TRADE IS NOW | OPEN |
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| 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) |
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| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT |
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| NO EARNINGS DURING THIS TIMEFRAME | Verify-CVX |
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| YES, THE EX-DIVIDEND DATE IS DURING THIS TIMEFRAME |
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| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS |
| 45 | May 16, 2023 | June 30, 2023 |
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| CVX | | | TIME AND DATE STAMP |
| | Tuesday, May 16, 2023 |
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| 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'. |
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| View Chart-CVX |
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| DETAILS FOR THIS COVERED CALL TRADE |
| Today, (5) Covered Call contract(s) were sold on CVX (ticker: CVX) for the Jun-30-2023 Expiration Date, $155 Strike Price for a Premium of $4.8 CVX was trading for $154.14 a share. |
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| PREMIUM ONLY TRADE |
| PMCC trades are typically all premium trades . If the stock moves above my strike, in this case my LEAPS will be profitable too. |
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| Stock Price - placed | Date | Total Prem$ | Contracts |
| $154.14 | May-16 | $4.80 | 5 |
| Strike Price | Expire | Days | Projected Cash Flow |
| $155.00 | Jun-30 | 45 | $2,400.00 |
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| WHY I OPENED this CCW on > CVX > As I mentioned with this poor man's covered call Trade alert I believe Chevron is training near its support and with the dividend coming I believe this is a great opportunity to buy low sell High we're going to use the leverage of a leaps call option versus buying the shares this will be a very profitable trade if my Shares are taken away> 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. |
