| 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 TAXABLE ACCOUNT | |||||||||
| YES, EARNINGS WILL BE DURING THIS TIMEFRAME | Verify-AMD | ||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 37 | July 12, 2023 | August 18, 2023 | |||||||
AMD |  | TIME AND DATE STAMP | |||||||
| Wednesday, July 12, 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-AMD | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today, (1) Covered Call contract(s) were sold on AMD (ticker: AMD) for the Jun-30-2023 Expiration Date, $115 Strike Price for a Premium of $6.61 AMD was trading for $114.07 a share. | |||||||||
| PREMIUM ONLY TRADE | |||||||||
| PMCC trades are typically all premium trades . If the stock moves above my strike, in this case my LEAPS will be profitable too. | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $114.07 | Jul-12 | $6.61 | 1 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $115.00 | Aug-18 | 37 | $661.00 | ||||||
| WHY I OPENED this CCW on AMD > Working with a client coaching them on the poor man's covered call we talked about this particular trade AMD does have earnings so we understand it could be very volatile but dialing up the near-term covered call we decided that we can make a profitable trade in the next 37 days ( 14% IF SHARES TAKEN | 12% IF NOT TAKEN) so we went ahead and bought this LEAPS call option which we did pay over 3% (3.40% TimeValue cost) for the time value portion >but< will pay 3% because this is a more volatile stock and it'll pay higher covered call premiums> 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 | ||||||
| AMD | Mar2024 | $65.00 | $52.95 | ||||||
| CONTRACTS | CONTROLLING | DELTA | INVESTED | ||||||
| 1 | 100 | 0.952 | $5,295.00 | ||||||
| Working with a client coaching them on the poor man's covered call we talked about this particular trade AMD does have earnings so we understand it could be very volatile but dialing up the near-term covered call we decided that we can make a profitable trade in the next 37 days we went ahead and bought this leaps call option which we did pay over 3% for the time value portion but will pay 3% because this is a more volatile stock and it'll pay higher covered call premiums | |||||||||
| 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 | .+/- % | |||||||
| $52.95 | $52.95 | #REF! | #REF! | ||||||
| WHATS THE CASH ON CASH PERCENTAGE GAIN | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $114.07 | $115.00 | $6.61 | 1 | ||||||
| Premium Only? | CoC% | Share Taken? | MET 3% GOAL | ||||||
| $661.00 | 5.79% | 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% preferred | |||||||||
| 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 | ||||||||
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