| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | CLOSED CSP TRADE | ||||||||
| STANDARD CASH SECURED PUT TRADE IS NOW | CLOSED | ||||||||
| WINNER! | $805.00 | ||||||||
| DAYS ON | THIS CASH SECURED PUT TRADE IS CLOSED / NO ROLL | ||||||||
| 7 | June 7, 2023 | June 14, 2023 | |||||||
BABA |  | TIME AND DATE STAMP | |||||||
| Wednesday, June 14, 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-BABA | |||||||||
| DETAILS FOR THIS CASH SECURED PUT TRADE | |||||||||
| Today, (5) Cash Secured Put contract(s) bought back on Alibaba Group Holding Ltd - ADR (ticker: BABA) for the Jun-30-2023 Expiration Date, $84.00 Strike Price for a Premium of $2.50 > BABA was trading for $86.00 a share. Because I bought this option back early, I did not make max profit. The final profit / cash flow collected it posted below. Instead of making the original premium, I collected $1.61 or 0.644% of the total projected cash flow for this trade. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| CASH SECURED PUTS ARE PREMIUM ONLY TRADES | |||||||||
| Because I bought this option back, i was not assigned shares and this is a premium profit trade only. | |||||||||
| Stock Price - placed | Date | Expire WAS | Days On | ||||||
| $86.00 | Jun-7 | Jun-30 | 7 | ||||||
| Strike Price | Contracts | BUY BACK | Cash Flow Collected | ||||||
| $84.00 | 5 | -$0.89 | $805.00 | ||||||
| Cash Invested? | Cash Flow Collected | ||||||||
| $42,000.00 | 1.92% | ||||||||
| WHY THIS CASH SECURED PUT WAS CLOSED (ASSIGNED/BUYBACK) | |||||||||
| WHY I CLOSED this CSP Trade > With this option falling more than 50% and having over $800 on the table and profit I decided to buy it back we're going to use this money in combination with some other on the sideline cash and make another play somewhere else | |||||||||
| 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% preferred | |||||||||
| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) | |||||||||
| Premium | -50% | 10% Rule | My Buy Back was? | ||||||
| $2.50 | $1.25 | $0.00 | -$0.89 | ||||||
| -50% Rule? | Percentage Down | ||||||||
| YES | -64.40% | ||||||||
| 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 - No - at the time of this posting I did not own the shares of this equity ... I risk my own money on this trade and am accountable for the trade results | |||||||||
| 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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