| All rights reserved - Core Position Trading, LLC-2024 | |||||||||
 | NEW CSP TRADE | ||||||||
| STANDARD CASH SECURED PUT TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW CSP TRADE BEGINS AND ENDS | ||||||||
| 8 | April 4, 2024 | April 12, 2024 | |||||||
AMD |  | TIME AND DATE STAMP | |||||||
| Thursday, April 4, 2024 | |||||||||
| 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'. | |||||||||
| UNIQUE TRADE IDENTIFIER | AMD1753.4 | ||||||||
| DETAILS FOR THIS CASH SECURED PUT TRADE | |||||||||
| Today a NEW Cash Secured Put position was opened using AMD (ticker: AMD) when the stock was trading for $175 a shares. I sold (5) Cash Secured Put contract(s) using (1000) shares worth of money for the Mar-22-2024 Expiration Date, $175 Strike Price receiving a Premium of $3.4 of $1700 in upfront cash flow to begin this trade. This would be an (OTM) Cash Secured Put. | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this CSP on > AMD > (8) day trade where I'm trying to capture anywhere from 1.2% - 1.3% for a weekly Cash Secured Put and 3% or more for a monthly expiration. This trade will make $1700 dollars which represents 1.94% on money invested. Further commentary > I still believe AMD is trading in and around its current support level which I believe is right around $177 to $175 so in the next 6 days if I'm assign the shares at $175 I have no problems turning around and writing a longer term cover call , I feel confident with this strike price , of course if the markets were to breakdown, AMD will fall as well making for a more interesting trade where I might be assigned or manage by buying back and Rolling down | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | |||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| PROJECTED PROFIT POTENIAL (CSP PREM ONLY) | |||||||||
| Being this is a Premium only trade, I will make MAX Profit if assigned the shares or expiring OTM worthless | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $175.00 | Apr-4 | $3.40 | 5 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $175.00 | Apr-12 | 8 | $1,700.00 | ||||||
NOTE: I will take any profits from this trade and buy equal amounts of a dividend paying stocks for passive income (TBD) | Projected CoC% gain | ||||||||
| 1.94% | |||||||||
| Cash Invested? | Projected Prem? | CoC% | |||||||
| $87,500.00 | $1,700.00 | 1.94% | |||||||
YES, MEETS MY 1% FOR A WEEKLY CSP | |||||||||
| General plan for my Cash Secured Puts Cash on Cash % investments > I like to generate a 2% 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 2 ot 3% perferred | |||||||||
| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) | |||||||||
| Premium | -50% Rule | 10% Rule | |||||||
| $3.40 | $1.70 | $0.34 | |||||||
| 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. | |||||||||
| 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. | |||||||||
| Disclaimer - No - at the time of this posting I did not own the shares of this equity ... I risk my own money on this trade and am accountable for the trade results | |||||||||
| 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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