All rights reserved - Core Position Trading, LLC-2023
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Friday, June 30, 2023
Thursday, June 29, 2023
OPEN UCPTD Trade | (OTM) CSP on BABA > $1,550 projected (29) day cash flow
| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW CSP TRADE | ||||||||
| STANDARD CASH SECURED PUT TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW CSP TRADE BEGINS AND ENDS | ||||||||
| 29 | June 29, 2023 | July 28, 2023 | |||||||
BABA |  | TIME AND DATE STAMP | |||||||
| Thursday, June 29, 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'. | |||||||||
| DETAILS FOR THIS CASH SECURED PUT TRADE | |||||||||
| Today a NEW Cash Secured Put position was opened using Alibaba Group Holding Ltd - ADR (ticker: BABA) when the stock was trading for $83.36 a shares. I sold (5) Cash Secured Put contract(s) using () shares worth of money for the Jul-14-2023 Expiration Date, $83.00 Strike Price receiving a Premium of $3.10 of $1,550 in upfront cash flow to begin this trade. This would be an (OTM) Cash Secured Put. | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this CSP on > BABA > With the stock trading near what I believe is the $82 support line I'm going to use this $83 strike to collect some decent premium but I believe of the next 30 days the stock should reverse and move a little bit higher I'm actually thinking the stock will move away from this $83 strike and I will be able to buy this back mid contract for much less | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | |||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| PROJECTED PROFIT POTENIAL (CSP PREM ONLY) | |||||||||
| Being this is a Premium only trade, I will make MAX Profit if assigned the shares or expiring OTM worthless | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $83.36 | Jun-29 | $3.10 | 5 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $83.00 | Jul-28 | 29 | $1,550.00 | ||||||
| Projected CoC% gain | |||||||||
| 3.73% | |||||||||
| Cash Invested? | Projected Prem? | CoC% | |||||||
| $41,500.00 | $1,550.00 | 3.72% | |||||||
MET 3% GOAL | |||||||||
| General plan for my Cash Secured Puts Cash on Cash % investments > I like to generate a 2% 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 2 ot 3% perferred | |||||||||
| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) | |||||||||
| Premium | -50% Rule | 10% Rule | |||||||
| $3.10 | $1.55 | $0.31 | |||||||
| What does this mean? If within the first week the option falls 50% I will buy back the option and look to roll for another credit ... if the option falls to 10% of the value, I will buy back and roll. | |||||||||
| 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 | |||||||||
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