| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW PMCC TRADES | ||||||||
| STANDARD POOR MAN'S COVERED CALL TRADE IS NOW | ROLLED | ||||||||
Today I ROLLED (Closed then Opened) a CCW trade basically at once and have consolidated the trades here. | TIME AND DATE STAMP | ||||||||
| Thursday, November 30, 2023 | |||||||||
| CLOSED ORIGINAL CCW TRADE > DETAILS PREMIUM PROFIT ONLY | |||||||||
| Alibaba Group | BABA |  | |||||||
| CLOSED CCW TRADE DETAILS | |||||||||
| ORIGINAL CCW TRADE DETAILS BELOW (OPEN) | |||||||||
| On Nov-17 I placed this original trade and below are the details of that trade. | |||||||||
| Strike Price was | Strike Price | Closed | Premium was | ||||||
| $78.21 | $80.00 | 12 | $2.20 | ||||||
| Days On | Buy Back | Total Cash Flow I made | |||||||
| 12 | $0.74 | $1,460.00 | |||||||
| Final per share premium made? | Final Cash on Cash % | ||||||||
| $1.46 | 11.77% | ||||||||
| WHY I CLOSED THIS PMCC TRADE EARLY | |||||||||
| With Alibaba Group Holding Ltd - ADR trading lower and my option falling to where I could take a sizable 'option' profit off the board, I elected to because > > With over $1,400 on the table, we take this off and look to do another soon ... nice pocket change and with the option expiring in 2 weeks ... we'll check back | ||||||||
| DID I BUY BACK THIS OPTION USING THE 50% / 10% RULE? | |||||||||
AS THE TRADE PROGRESSED, THE OPTION FELL, OPTION PROFIT WAS AVAILABLE SO I DECIDED TO CLOSE THIS TRADE. | -50% Rule? | Percentage Down | |||||||
| YES | -66.36% | ||||||||
| NEW ROLL CCW TRADE DETAILS | |||||||||
| NEW CCW TRADE (ROLLED) DETAILS BELOW (OPEN) | |||||||||
| Today, Nov-30 I placed this NEW CCW trade and below are the details of that trade. | |||||||||
| Strike Price was | Strike Price | Expire | NEW Premium | ||||||
| $74.39 | $79.00 | Dec-29 | $1.05 | ||||||
| With the stock trading @ $74.39 I decided to sell the new covered call (short call) for the $79 Strike and received $29 in premium ... this will be a ($1.05) trade if it goes to expiration. | |||||||||
| Days | Contracts | Projected Cash Flow | |||||||
| 29 | 10 | $1,050.00 | |||||||
| Projected Cash Flow | |||||||||
| 28.38% | |||||||||
| WHY I OPENED THIS PMCC TRADE | |||||||||
| Trying to keep this trade alive and making monthly premiums, we sell this short call and do have hopes of the shares being taken ... making this a green trade all around > 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 | ||||||||
| USING THIS LEAPS CALL OPTION, HOW MUCH PREMIUM ? | |||||||||
| If my shares are taken, that means the stock has moved above my strike price of $79 which means I will make both the Covered Call Premium of $1050 and I will basically have to SELL my LEAPS call option which is projected to be priced at $12.43 making a profit | |||||||||
| 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 | Investment | ||||||
| BABA | Apr2023 | $70.00 | $12,400.00 | ||||||
| Contracts | Controlling shares | Delta | Paid? | ||||||
| 10 | 1000 | 0.742 | $12.40 | ||||||
| The Current LEAPS value > | Current Value | $9.05 | |||||||
| I AM CURRENTLY (+) or (-) this amount starting this trade > | -$3.35 | ||||||||
| The LEAPS value will move higher > | Projected Value | $12.43 | |||||||
| The 'Projected Value' is based on where the LEAPS is valued at the start of this trade and where the LEAPS value will be at the strike price. | |||||||||
| 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% +/- | ||||||
| Nov-17 | Nov-29 | $1,460.00 | 11.77% | ||||||
| Nov-17 | Nov-29 | $1,050.00 | 8.47% | ||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| $2,510.00 | 20.24% | ||||||||
| 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. | |||||||||
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| 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 | |||||||||
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