| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW CCW TRADE | ||||||||
| NEW STANDARD COVERED CALL TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 25 | July 10, 2023 | August 4, 2023 | |||||||
SQ |  | TIME AND DATE STAMP | |||||||
| Monday, July 10, 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-SQ | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using Block Inc (ticker: SQ) when the stock was trading for $68.95 a share. I Sold (13) Covered Call contract(s) using (1300) shares for the August-4-2023 Expiration Date, $74.00 Strike Price receiving a Premium of $2.53 or $3289. in upfront cash flow to begin this trade. This would an (OTM) Covered Call trade. These shares I'm using have were acquired via (purchasing these shares outright) and have a cost basis of $73.28 per share. | |||||||||
| > 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. | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this CCW on > SQ > Square (SQ) is moving in the right direction for me as my cost basis is $74.60 ... I decided to buy an additional 300 shares at its current stock price of $68.95 and we went ahead and sold the August 4th $74 Strike ... which makes this a green trade for my stock purchase ... Although I don't make much money and I would have my shares taken away where I did not lose money on the shares, this trade will end and we will have worked through a trade where I was down over -$12,000 at one point ... I will manage this trade as the covered call is one day expiration after earnings. I'm figuring that I'm going to hold the shares anyway. We might as well take a chance and trade through earnings. I'm not really worried about upside with the stock price because at this point I've been down -$12,000 ... I just want to have a green trade | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | Verify-SQ | ||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| PROJECTED PROFIT POTENIAL (STOCK MOVE + CCW PREM + DIV) | |||||||||
| If I collect everything ... stock apprecation (if any) the entire covered call premium (ie, no buy back) and if a dividend is distributed during this timeframe below is the projected MAX PROFIT projections for this trade. | |||||||||
| Stock Move | Total Prem$ | Dividend | Projected Cash Flow | ||||||
| $936.00 | $3,289.00 | $0.00 | $4,225.00 | ||||||
| Verify-SQ | Cash on Cash % | ||||||||
| 4.44% | |||||||||
| PROJECTED PREMIUM + DIVIDEND ONLY POTENIAL (CCW PREM + DIV) | |||||||||
| If the stock finishes below the strike price and my shares are not taken for either the dividend or it finishing in the money at expireation, below is the projected PROFIT projections for this trade. | |||||||||
| Total Prem$ | Dividend | Projected Cash Flow | |||||||
| $3,289.00 | $0.00 | $3,289.00 | |||||||
| Verify-SQ | Cash on Cash % | ||||||||
| 3.45% | |||||||||
| PROJECTED PREMIUM ONLY POTENIAL (CCW PREM EXPIRE WORTHLESS) | |||||||||
| If the stock finishes below the strike price and my shares are not taken and no dividend was offered then this becomes a premium trade only and below is the projected PROFIT projections for this trade. | |||||||||
| Total Prem$ | Projected Cash Flow | ||||||||
| $3,289.00 | $3,289.00 | ||||||||
| Cash on Cash % | |||||||||
| 3.45% | |||||||||
| 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 | |||||||||
| WHAT IF MY SHARES ARE TAKEN | |||||||||
| What if my shares were expectitlty taken on this trade prior to expireation or I didnt manage it correctly by ending the trade early if I didnt want my shares taken prior to the expire date? | |||||||||
| Cost Basis - per share | Shares taken | I would Profit or Loss this | |||||||
| $73.28 | $74.00 | $936.00 | |||||||
| SHARES TAKEN - I WILL NOT LOSE money as my stock purchase price is lower making this a profitable trade. | |||||||||
| MY COST BASIS ON THESE SHARES | |||||||||
| Cost Basis - shares | Acquired? | Shares | Total Cost | ||||||
| $73.28 | Bought | 1300 | -$95,264.00 | ||||||
| HOW MUCH AS THIS MONEY INVESTED MADE USING THIS STOCK? | |||||||||
| Using this money invested, have I been able to generate any cash flow off this money invested using this stock? below I outline selling premium trades associated with this money invested. | |||||||||
| Date | Type | Actual Prem $ | Total | ||||||
| Apr-4 | CCW | 12/30/1899 | $540.00 | ||||||
| Apr-4 | CCW | 12/30/1899 | $980.00 | ||||||
| May-11 | CCW | 12/30/1899 | $2,260.00 | ||||||
| May-16 | CCW | 12/30/1899 | $510.00 | ||||||
| May-16 | CCW | 12/30/1899 | $250.00 | ||||||
| How much cash flow I've generated using this money invested > | $4,540.00 | ||||||||
| How much (if any) am I down on the shares ? | -$5,629.00 | ||||||||
| 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 | |||||||||
| 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. | |||||||||
| 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. | |||||||||
| 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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