| All rights reserved - Core Position Trading, LLC-2023 |
 | NEW PMCC TRADE |
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| STANDARD POOR MAN'S COVERED CALL TRADE IS NOW | OPEN |
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| FIRST TRADE USING THIS LEAP CALL OPTION |
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| DAYS | THIS NEW PMCC CCW TRADE BEGINS AND ENDS |
| 35 | August 25, 2023 | September 29, 2023 |
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AMD | | TIME AND DATE STAMP |
| Friday, August 25, 2023 |
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| 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'. |
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| View Chart-AMD |
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| COVERED CALL |
| DETAILS FOR THIS COVERED CALL TRADE |
| Today a NEW Covered Call position was opened using Advanced Micro Devices, Inc. (ticker: AMD) when the stock was trading for $101.9 a share. I Sold (5Covered Call contract(s)using (5) shares for the September-29-2023 Expiration Date, $103.00 Strike Price receiving a Premium of $5.25 or $2825 in upfront cash flow to begin this trade. |
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| COMMENTARY AS TO WHY I OPENED THIS TRADE |
| WHY I OPENED this CCW onAMD>Feeling AMD got beaten up a bit too much yesterday (8/24/2023) -8% because of NVDA news and now AMD news ... just a little buy low LEAPS, sell high CCW ... picked up (5) LEAPS Capp Options for this trade ... if my shares are taken we more a profit. |
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. |
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| PROJECTED PROFIT POTENTIAL (IF SHARES ARE TAKEN) |
| Stock Price - placed | Date | Total Prem$ | Contracts |
| $101.90 | Aug-25 | $5.25 | 5 |
| Strike Price | Expire | Days | Projected Cash Flow |
| $103.00 | Sep-29 | 35 | $2,825.00 |
| Projected CoC% gain |
| 14.12% |
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| 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 |
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| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) |
| Premium | -50% Rule | 10% Rule | |
| $5.25 | $2.63 | $0.53 |
| 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. |
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| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT |
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| NO EARNINGS DURING THIS TIMEFRAME | Verify-AMD |
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| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME |
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| LEAPS CALL OPTION |
| DETAILS OF THE LEAPS CALL OPTION I PURCHASED |
| Below is the LEAPS Call Option purchase information. The performance 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 |
| AMD | Mar2024 | $65.00 | $40.01 |
| Contracts | Controlling shares | Delta | Investment |
| 5 | 500 | 0.96 | $20,005.00 |
| Current Value | Current +/- |
| $40.20 | (+) $-0.190000000000005 |
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| USING THIS LEAPS CALL OPTION, HOW MUCH PREMIUM ? |
| Below are all of the Covered Calls I have sold while owning this position. It does includes the current active Covered Call Trade. |
| Date Opened | Date Closed | Cash Flow | CoC% +/- |
| Aug-25 | Sep-29 | $2,825.00 | 14.12% |
| | | #DIV/0! |
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| $2,825.00 | 14.12% |
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