| 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 | ||||||||
| 30 | June 21, 2023 | July 21, 2023 | |||||||
VLO |  | TIME AND DATE STAMP | |||||||
| Wednesday, June 21, 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 $112.5 a share I Sold (10) Covered Call contract(s) for the Jul-21-2023 Expiration Date, $123 Strike Price for a Premium of $0.89 | |||||||||
| I own these shares with an original cost basis of $129 | |||||||||
| PREMIUM ONLY TRADE | |||||||||
| IF my shares are assigned, this will be basically a BREAK EVEN trade where my shares will be take at my Cost Basis for the share purchase | |||||||||
| PROJECTED PROFIT POTENIAL (STOCK MOVE + CCW PREM + DIV) | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $112.50 | Jun-21 | $0.89 | 10 | ||||||
| Strike Price | Expire | Days | Possible Dividend | ||||||
| $123.00 | Jul-21 | 30 | $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 | ||||||||
| $890.00 | |||||||||
| WHY I OPENED this CCW on > VLO > Just watching the price action on VLO with no earnings and no dividend and the markets being a bit stable , its a green day so we make this little krum trade ... take notice, IF my shares are taken in some crazy event (this would suck as my CB is $129) this overall trade would make me money... not much but it would be green ... that will NOT happen as I will manage this trade not allowing my shares to be taken at this strike (crossing fingers I can manage this, not adding to my CB)my cost basis is $129 a share I feel this strike price will not be challenged in the time frame I picked> as always, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| WHAT SS THE CASH ON CASH % PERCENTAGE GAIN (IF ANY) | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $112.50 | $123.00 | $0.89 | 10 | ||||||
| Premium Only? | CoC% | Share Taken? | DO NOT MEET 3% GOAL | ||||||
| $890.00 | 0.79% | BREAK EVEN | |||||||
| WHAT IF MY SHARES ARE TAKEN | |||||||||
| Cost Basis - shares | Would Collect | Possible Share Profit | |||||||
| $129.00 | $123.00 | -$6,000.00 | |||||||
| SHARES TAKEN - I WILL BREAK EVEN as my share cost basis equals the strike price | |||||||||
| POSSIBLE OUTCOMES FOR THIS TRADE | |||||||||
| 3) Covered Call (no Dividend offered) - if shares are not taken at Expiration, option expires worthless I make just $0.89 per share, or 0.689922480620155 %- Annualized 8.39405684754522% | |||||||||
| CC - If the stock goes LOWER, I BUY BACK this option and then determine whether I wait for the stock to rebound or consider Writing another Covered Call if its deemed profitable | |||||||||
| 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 | $0.89 | $890.00 | ||||||
| DIV | $1,020.00 | ||||||||
| How much cash flow I've generated using this money invested > | $7,290.00 | ||||||||
| How much (if any) am I down on the shares ? | -$16,500.00 | ||||||||
| 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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