| 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-VLO | ||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 25 | June 26, 2023 | July 21, 2023 | |||||||
VLO |  | TIME AND DATE STAMP | |||||||
| Monday, June 26, 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-VLO | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today, using my own (1000) shares of VLO (ticker: VLO) when the stock was trading for $113.87 a share I Sold (10) Covered Call contract(s) for the Jul-21-2023 Expiration Date, $124 Strike Price for a Premium of $0.81 | |||||||||
| I own these shares with an original cost basis of $129 | |||||||||
| PREMIUM ONLY TRADE | |||||||||
| IF my shares are taken, I will in fact profit > details of share profit are posted below | |||||||||
| PROJECTED PROFIT POTENIAL (STOCK MOVE + CCW PREM + DIV) | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $113.87 | Jun-26 | $0.81 | 10 | ||||||
| Strike Price | Expire | Days | Possible Dividend | ||||||
| $124.00 | Jul-21 | 25 | $0.00 | ||||||
| Verify-VLO | |||||||||
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 | ||||||||
| $810.00 | |||||||||
| WHY I OPENED this CCW on > VLO > I seem to be cherry-picking as one day it'll be up next it'll be down next it'll be up next it'll be down so I keep writing these covered calls with these deep out of the money strikes , inevitably , buying them back pocketing $300 and $400 each time , I ultimately believe the stock moves back to my cost basis of $129 I'm just going to keep collecting these 30-day cover call premiums as we use the stock for positive cash flow until the entire position becomes green> as always, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| WHAT SS THE CASH ON CASH % PERCENTAGE GAIN (IF ANY) | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $113.87 | $124.00 | $0.81 | 10 | ||||||
| Premium Only? | CoC% | Share Taken? | DO NOT MEET 3% GOAL | ||||||
| $810.00 | 0.71% | PROFIT | |||||||
| WHAT IF MY SHARES ARE TAKEN | |||||||||
| Cost Basis - shares | Would Collect | Possible Share Profit | |||||||
| $129.00 | $124.00 | -$5,000.00 | |||||||
| SHARES TAKEN - I WILL LOSS money on the shares but will make money on all the Covered Calls I've sold, this will be an OVERALL profitable trade. as my share cost basis equals the strike price | |||||||||
| 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 | |||||||||
| DETAILS OF THE STOCK PURCHASE | |||||||||
| I have owned these shares with an original cost basis of $129 | |||||||||
| MY COST BASIS ON THESE SHARES | |||||||||
| Cost Basis - shares | Acquired? | Shares | Total Cost | ||||||
| $129.00 | Assigned (CSP) | 1000 | -$129,000.00 | ||||||
| HOW MUCH AS THIS MONEY INVESTED MADE USING THIS STOCK? | |||||||||
| Date | Type | Actual Prem $ | Total | ||||||
| Jun-6 | CCW | $0.35 | $350.00 | ||||||
| May-16 | CCW | $0.86 | $860.00 | ||||||
| May-11 | CCW | $0.65 | $650.00 | ||||||
| Apr-17 | CSP | $3.52 | $3,520.00 | ||||||
| Jun-21 | CCW | $0.31 | $310.00 | ||||||
| DIV | $1,020.00 | ||||||||
| How much cash flow I've generated using this money invested > | $6,710.00 | ||||||||
| How much (if any) am I down on the shares ? | -$15,130.00 | ||||||||
| What does this mean? I'm currently DOWN on the shares purchase by this much ... I DO NOT use CC Prems for cost basis reduction ... so this is what I down on the stock right now or as of this trade | |||||||||
| 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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