| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW CCW TRADES | ||||||||
| STANDARD COVERED CALL TRADE(S) NOW | ROLLED | ||||||||
Today I ROLLED (Closed then Opened) a CCW trade basically at once and have consolidated the trades here. | TIME AND DATE STAMP | ||||||||
| Tuesday, August 1, 2023 | |||||||||
| CLOSED ORIGINAL CCW TRADE > DETAILS PREMIUM PROFIT ONLY | |||||||||
| Valero Energy | VLO |  | |||||||
| TRADE 1 > COLLECTED | TRADE 2 > PROJECTIONS | ||||||||
| -$1,700.00 | $4,520.00 | ||||||||
| CLOSED CCW TRADE DETAILS | |||||||||
| ORIGINAL CCW TRADE DETAILS BELOW (OPEN) | |||||||||
| On Jul-11 I placed this original trade and below are the details of that trade. | |||||||||
| Strike Price was | Strike Price | Days | Premium was | ||||||
| $115.54 | $126.00 | 31 | $0.95 | ||||||
THIS WAS THE TRADE WITH THE PROFIT PROJECTIONS | Contracts | Projected Cash Flow | |||||||
| 10 | $950.00 | ||||||||
| ORIGINAL CCW TRADE DETAILS BELOW (CLOSED) | |||||||||
| Premium was | Buy Back was | Total Cash Flow I made | |||||||
| $0.95 | -$3.67 | -$1,700.00 | |||||||
AS THE TRADE PROGRESSED, THE OPTION FELL, OPTION PROFIT WAS AVAILABLE SO I DECIDED TO CLOSE THIS TRADE. | -50% Rule? | Percentage Down | |||||||
| N/A | |||||||||
| REASONING FOR BUYING BACK THIS CCW OPTION (FINAL) | |||||||||
| WHY I CLOSED this CCW Trade > Because VLO moved past my strike price and tomorrow being the ex-dividend date , I will have my shares taken away if I do not take action , so I bought back my option , losing money and then I sold a new option , basically $1 below the current stock price because that represents the $1 dividend as the stock will fall based on its dividend tomorrow morning , I pushed out the expiration date to the end of August so this is just a classic roll to avoid having my shares taken away because of a dividend | |||||||||
| ROLLED CCW TRADE DETAILS | |||||||||
| NEW CCW TRADE (ROLLED) DETAILS BELOW (OPEN) | |||||||||
| Today, Aug-1 I placed this NEW CCW trade and below are the details of that trade. | |||||||||
| Valero Energy | VLO | | |||||||
| Strike Price was | Strike Price | Expire | Days | ||||||
| $128.77 | $127.00 | Aug-25 | 24 | ||||||
| NEW Premium | Contracts | Projected Cash Flow | |||||||
| $4.52 | 10 | $4,520.00 | |||||||
| REASONING FOR ROLLING THIS MONEY VS JUST SITTING (FINAL) | |||||||||
| WHY I OPENED this CCW on > VLO > Because VLO moved past my strike price and tomorrow being the ex-dividend date , I will have my shares taken away if I do not take action , so I bought back my option , losing money and then I sold a new option , basically $1 below the current stock price because that represents the $1 dividend as the stock will fall based on its dividend tomorrow morning , I pushed out the expiration date to the end of August so this is just a classic roll to avoid having my shares taken away because of a dividend> 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. | |||||||||
| ________________________________________________________________________________ | |||||||||
| 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. | |||||||||
| 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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