| 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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| DAYS | THIS NEW PMCC CCW TRADE BEGINS AND ENDS |
| 31 | September 12, 2023 | October 13, 2023 |
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HON | | TIME AND DATE STAMP |
| Tuesday, September 12, 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-HON |
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| 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 $189.08 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 $1.2 or $360 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 on HON > With Honeywell Trading UP , this is a little KRUM trade hoping the stock finishes @ $195, have my shares taken to make MAX Profit and more on this over 45 day trade , will buy back option if it falls |
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. |
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| PROJECTED PROFIT POTENTIAL (IF SHARES ARE TAKEN) |
| Stock Price - placed | Date | Total Prem$ | Contracts |
| $189.08 | Sep-12 | $1.20 | 3 |
| Strike Price | Expire | Days | Projected Cash Flow |
| $195.00 | Oct-13 | 31 | $360.00 |
| Projected CoC% gain |
| 2.12% |
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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 | |
| $1.20 | $0.60 | $0.12 |
| 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-HON |
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| YES, THE EX-DIVIDEND DATE IS 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 |
| HON | Mar2024 | $140.00 | $56.59 |
| Contracts | Controlling shares | Delta | Investment |
| 3 | 300 | 95.5 | $16,977.00 |
| Current Value | Current +/- |
| $51.80 | (-) $4.79 |
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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-2 | Aug-8 | $621.00 | 3.66% |
| Aug-11 | Aug-21 | $432.00 | 2.55% |
| Aug-24 | Sep-7 | $258.00 | 1.52% |
| Sep-12 | Oct-13 | $360.00 | 2.12% |
