| 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 TAXABLE ACCOUNT |
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| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS |
| 28 | May 5, 2023 | June 2, 2023 |
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| XLE | | | TIME AND DATE STAMP |
| | Friday, May 5, 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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| DETAILS FOR THIS COVERED CALL TRADE |
| Today, (2) Covered Call contract(s) were sold on XLE (ticker: XLE) for the May-3-2023 Expiration Date, $81.5 Strike Price for a Premium of $1.85 XLE was trading for $80.23 a share. |
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| PREMIUM ONLY TRADE |
| PMCC trades are typically all premium trades . If the stock moves above my strike, in this case my LEAPS will be profitable too. |
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| Stock Price - placed | Date | Total Prem$ | Contracts |
| $80.23 | May-5 | $1.85 | 2 |
| Strike Price | Expire | Days | Projected Cash Flow |
| $81.50 | Jun-2 | 28 | $370.00 |
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| WHY I OPENED this CCW on > XLE> Right now the energy sector seems to be trading off its near-term support and I like that because I want to buy low sell high and right now the energy sector is bouncing off its near-term support so we took advantage of that by buying a leap call option on the energy sector XLE ETF and now we're going to write that 30-day near-term covered call collecting $370 in premium and a little stock appreciation as my strike price is much higher than where I purchased the leaps call option of course I will manage this trade and if it's profitable we will buy the near-term cover call option back for a loss yet sell our leaps call option for a profit as it's a 95 Delta leap the leap will move 95% of a $1 move in XLE making this trade Max profitable> 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. |
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| Details LEAP Call option I'm using for this PMCC |
| SYMBOL | LEAP | STRIKE | PAID |
| XLE | Jan2024 | $47.00 | $31.95 |
| CONTRACTS | CONTROLLING | DELTA | INVESTED |
| 2 | 200 | 0.955 | $6,390.00 |
