OPEN PMCC Trade | YINN > $950 collected in (11) days

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			NEW PMCC TRADE
STANDARD POOR MAN'S COVERED CALL TRADE IS NOW									OPEN
DAYS		THIS NEW PMCC CCW TRADE BEGINS AND ENDS
11		December 4, 2023				December 15, 2023
YINN						TIME AND DATE STAMP
						Monday, December 4, 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-YINN
COVERED CALL
DETAILS FOR THIS COVERED CALL TRADE
Today a NEW Covered Call position was opened using 3x Shares (YINN)
Direxion Daily FTSE China Bull 3x Shares was trading for $19.9 a share when I placed this trade. I then sold (10) Covered Call contract(s) using/controlling (1000) shares for the December-29-2023 Expiration Date, $20.5.00 Strike Price receiving a Premium of $0.95 or $950 in up front cash flow to begin this trade. I used a LIMIT ORDER trying to gain the MID price which in this case I was able.
PROJECTED PROFIT POTENTIAL (IF SHARES ARE NOT TAKEN)
Stock Price - placed			Strike Price		Total Prem$		Contracts
$19.90			Dec-4		$0.95		10
Strike Price			Expire		Days		Projected Cash Flow
$20.50			Dec-15		11		$950.00
PREMIUM ONLY CALCULATIONS							Projected CoC% gain
This is the money invested >					$6,300.00		15.08%
WHAT IF YOUR SHARES ARE TAKEN? (CLOSEOUT LEAPS SOLD)
If my shares are taken, that means the stock has moved above my strike price of $20.5 which means I will make both the Covered Call Premium of $0.95 and I will basically have to SELL my LEAPS call option which is projected to be priced at $6.79. This will result in a profit as my LEAPS will be sold higher then where I bought it I will have used this LEAPS call option for (3) trades.
TOTAL CLOSEOUT RETURNS ON MONEY INVESTED
CLOSEOUT equals LEAPS sold + any Covered Call premiums collected				CLOSEOUT Projections			CLOSEOUT CoC% +/-
				$1,440.00			22%
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
COMMENTARY AS TO WHY I OPENED THIS TRADE
		WHY I OPENED this CCW on YINN > YINN hits my radar last week as being in BABA, I noticed that this is the 3X ETF to the China Large Cap ETF FXI ... so with it trading near its (1) year low I just feel if Im going to take a position, this is a good spot ... obviously VERY risky ... but it is the INDEX to the largest of China stocks which wont collapse if your asking me ... will manage as it goes. > IF my shares are taken at this strike price, my expected LEAPS value will be $6.79 , my cost basis is $6.3 > I have an ITM Apr2024, $15 Strike, 0.78 Delta LEAPS Call Option in place to support this trade. I paid $6.30 > Where does my LEAPS currently stand? (+) > The stock is trading above what would be my 'cost basis' for the shares (ie, the LEAPS is up) so if my shares are taken I will make money on the LEAPS Call Option
> 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.
GOLDEN RULES OF COVERED CALL WRITING (AVOIDING EARNINGS)
WILL THEY HAVE EARNINGS?						Verify-YINN			NO
Try to avoid Earnings Reports > Earnings can be a stocks most volitile moment so its important to try to avoid writing a covered call thru or near earnings. Even great stocks can move +/- 10% on earnings
GOLDEN RULES OF COVERED CALL WRITING (DIVIDEND EX-DATE)
WILL COMPANY HAVE AN EX-DATE						Verify-YINN			NO
Try to avoid EX-Dates > Companies that have dividends will trade differently in and around its EX-Date ... keep this in mind when writing a covered call as you might have your shares taken if its profitable for the Call Buyer.
-50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK)
Premium			-50% Rule		10% Rule
$0.95			$0.48		$0.10
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 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 © 2023 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved Disclaimer