| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW PMCC TRADE | ||||||||
| STANDARD POOR MAN'S COVERED CALL TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW PMCC CCW TRADE BEGINS AND ENDS | ||||||||
| 28 | August 11, 2023 | September 8, 2023 | |||||||
HON |  | TIME AND DATE STAMP | |||||||
| Friday, August 11, 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-HON | |||||||||
| COVERED CALL | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using Honeywell International Inc (ticker: HON) when the stock was trading for $190.07 a share. I Sold (3Covered Call contract(s)using (3) shares for the August-25-2023 Expiration Date, $195.00 Strike Price receiving a Premium of $1.79 or $537 in upfront cash flow to begin this trade. | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this CCW on HON > With Honeywell Trading down considerably , this is a little KRUM trade as I wait and hope it moves higher ... if my shares are taken, I make money, we move on ... why do I feel like it wont get there and we just have this expire worthless and do it again ... the EXPECTED STOCK MOVE Calc says at this moment it can move to $199 in this timeframe ... I dont feel it will, we will see. | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| PROJECTED PROFIT POTENIAL (IF SHARES ARE TAKEN) | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $190.07 | Aug-11 | $1.79 | 3 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $195.00 | Sep-8 | 28 | $537.00 | ||||||
| Projected CoC% gain | |||||||||
| 3.16% | |||||||||
| 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 | |||||||||
| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) | |||||||||
| Premium | -50% Rule | 10% Rule | |||||||
| $1.79 | $0.90 | $0.18 | |||||||
| What does this mean? If within the first week the option falls 50% I will buy back the option and look to roll for another credit ... if the option falls to 10% of the value, I will buy back and roll. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | Verify-HON | ||||||||
| YES, THE EX-DIVIDEND DATE IS DURING THIS TIMEFRAME | |||||||||
| LEAPS CALL OPTION | |||||||||
| DETAILS OF THE LEAPS CALL OPTION I PURCHASED | |||||||||
| Below is the LEAPS Call Option purchase information. The preformance part is based on a DELTA MOVE in the LEAPS vs the ACTUAL stock move so the numbers are as close as I can get them as DELTAs can change | |||||||||
| Symbol | Expiration | Strike | Paid | ||||||
| HON | Mar2024 | $140.00 | $56.59 | ||||||
| Contracts | Controlling shares | Delta | Investment | ||||||
| 3 | 300 | 95.49 | $16,977.00 | ||||||
| Current Value | Current +/- | ||||||||
| $54.30 | (-) $2.29 | ||||||||
| USING THIS LEAPS CALL OPTION, HOW MUCH PREMIUM ? | |||||||||
| Below are all of the Covered Calls I have sold while owning this position. It does incluces the current active Covered Call Trade. | |||||||||
| Date Opened | Date Closed | Cash Flow | CoC% +/- | ||||||
| Aug-2 | Aug-8 | $621.00 | 3.66% | ||||||
| Aug-11 | Sep-8 | $537.00 | 3.16% | ||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| $1,158.00 | 6.82% | ||||||||
| 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. | |||||||||
| This is not a recommendation to buy or sell this stock | |||||||||
| Yes, at the time of this trade I do own a position (LEAPS Call Option) | |||||||||
| 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. | |||||||||
| 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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