| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW PMCC TRADE | ||||||||
| STANDARD POOR MAN'S COVERED CALL TRADE IS NOW | OPEN | ||||||||
| 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) | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | Verify-XLE | ||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 28 | June 2, 2023 | June 30, 2023 | |||||||
XLE |  | TIME AND DATE STAMP | |||||||
| Friday, June 2, 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-XLE | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today, (2) Covered Call contract(s) were sold on XLE (ticker: XLE) for the Jun-30-2023 Expiration Date, $81 Strike Price for a Premium of $1.44 XLE was trading for $79.7 a share. | |||||||||
| PREMIUM ONLY TRADE | |||||||||
| PMCC trades are typically all premium trades . If the stock moves above my strike, in this case my LEAPS will be profitable too. | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| Mar-19 | Jun-2 | Dec-31 | 2 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| Mar-21 | Jun-30 | 28 | $288.00 | ||||||
| WHY I OPENED this CCW on > XLE > Markets are popping and with oil moving higher XLE is moving ... I can sell this CCW making my entire position profitable ... will manage as I see fit> 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. | |||||||||
| 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 | ||||||
| WHY I BOUGHT this LEAPS Call Option > Believing the markets are near a short term LOW and energy being a very impressive preformer off its support ... this is trading in the LOW 25% of its trading range ... so we pick up this LEAP and we look to do a CCW for 30 days ... | |||||||||
| How is the LEAP Call Option preforming at this moment | |||||||||
| As of this post, this is the MID PRICE VALUE for my LEAP Call Option | |||||||||
| WHAT I PAID | CURRENT MID | .+/- % | |||||||
| $31.95 | $32.90 | 2.97% | |||||||
| WHATS THE CASH ON CASH PERCENTAGE GAIN | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| Mar-19 | Mar-21 | Dec-31 | 2 | ||||||
| Premium Only? | CoC% | Share Taken? | DO NOT MEET 3% GOAL | ||||||
| 288 | 1.81% | PROFIT | |||||||
| 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% perferred | |||||||||
| How have I done with all trades using this LEAP? | |||||||||
| Date | Contracts | Cash Profit | CLOSED | ||||||
| May-5 | 2 | $198.00 | |||||||
| WHY I CLOSED this PMCC CCW Trade > With about 20 days left on this trade and the option having fallen -50% we're going to go ahead and take this off the board pocket the $200 bucks and we're going to look to roll this for another credit Maybe the $80 strike | |||||||||
| Date | Contracts | Cash Profit | CLOSED | ||||||
| May-11 | 2 | $198.00 | |||||||
| WHY I CLOSED this PMCC CCW Trade > with this option selling off some -49% I just took it off the board and we wait for a green day to use it again. | |||||||||
| Date | Contracts | Cash Profit | OPEN | ||||||
| Jun-2 | 2 | $288.00 | |||||||
| Trade is OPEN > will add commentary when Closed | |||||||||
| 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 | |||||||||
| © 2023 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved | Disclaimer | ||||||||
