| All rights reserved - Core Position Trading, LLC-2023 |
 | NEW CCW TRADE |
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| NEW (OTM) COVERED CALL TRADE IS NOW | OPEN |
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| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS |
| 11 | November 13, 2023 | November 24, 2023 |
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| PSX | | TIME AND DATE STAMP |
| Monday, November 13, 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-TQQQ |
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| DETAILS FOR THIS COVERED CALL TRADE |
| Today a NEW (OTM) Covered Call position was opened using Phillips 66 (ticker: PSX) |
| Phillips 66 , when the stock was trading for $113.93 a share I Sold (5) (OTM) Covered Call contract(s) using (500) shares for the November-24-2023 expiration date, strike price of $115 receiving a premium of $1 or $500 in up front cash flow to begine this trade. These shares I'm using have were aquired via () and have a cost basis of $113.84 per share. |
| > 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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| COMMENTARY AS TO WHY I OPENED THIS TRADE |
| WHY I OPENED this CCW on > PSX > CCW + DIV CAPTURE Trade > using PSX, its Ex-Date is Nov-16th, were picking the $115 strike in hopes the stock moves there and I have my shares taken in 3 days at $115 ... if not, we pick up the dividend in hopes over the next 11 days the stock finishes above the strike of $115 having the shares taken, making max profit > I also feel the stock is trading in a near term range I feel I can manage, I've decided to buy shares and write the OTM strike in hopes the stock will recover a bit and move higher allowing me to catch a little stock apprecation and covered call premium and having my shares taken for another possible MAX profit trade. |
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| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT |
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| NO EARNINGS DURING THIS TIMEFRAME | Verify-TQQQ |
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| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME |
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| PROJECTED PROFIT POTENTIAL (STOCK MOVE + CCW PREM + DIV) |
| If I collect everything ... stock appreciation (if any) the entire covered call premium (ie, no buy back) and if a dividend is distributed during this timeframe below is the projected MAX PROFIT projections for this trade. |
| Stock Move | Total Prem$ | Dividend | Projected Cash Flow |
| $3.12 | $500.00 | $525.00 | $1,560.00 |
| | | | | Verify-TQQQ | Cash on Cash % |
| | | | | | 2.74% |
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| PROJECTED PREMIUM + DIVIDEND ONLY POTENTIAL (CCW PREM + DIV) |
| If the stock finishes below the strike price and my shares are not taken for either the dividend or it finishing in the money at expiration, below is the projected PROFIT projections for this trade. |
| Total Prem$ | Dividend | Projected Cash Flow |
| $500.00 | $525.00 | $1,025.00 |
| Verify-TQQQ | Cash on Cash % |
| | 1.80% |
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| PROJECTED PREMIUM ONLY POTENTIAL (CCW PREM EXPIRE WORTHLESS) |
| If the stock finishes below the strike price and my shares are not taken and no dividend was offered then this becomes a premium trade only and below is the projected PROFIT projections for this trade. |
| Total Prem$ | Projected Cash Flow |
| $500.00 | $500.00 |
| Cash on Cash % |
| 0.88% |
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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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| WHAT IF MY SHARES ARE TAKEN |
| What if my shares were expectedly taken on this trade prior to expiration or I didn't manage it correctly by ending the trade early if I didn't want my shares taken prior to the expire date? |
| Cost Basis - per share | Shares taken | I would Profit or Loss this |
| $113.84 | $115.00 | $580.00 |
| SHARES TAKEN - I WILL BREAK EVEN as my share cost basis equals the strike price |
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| MY COST BASIS ON THESE SHARES |
| Cost Basis - shares | Acquired? | Shares | Total Cost |
| $113.84 | Bought | 500 | -$56,920.00 |
