| All rights reserved - Core Position Trading, LLC-2024 | |||||||||
 | NEW CCW TRADE | ||||||||
| NEW (OTM) COVERED CALL TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 9 | May 1, 2024 | May 10, 2024 | |||||||
TNA |  | TIME AND DATE STAMP | |||||||
| Wednesday, May 1, 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 | TNA380.6 | ||||||||
| COVERED CALL | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using 3x Shares (ticker: TNA) | |||||||||
| Direxion Daily Small Cap Bull 3x Shares , when the stock was trading for $35.5 a share , I Sold (18) (OTM) Covered Call contracts(s) using (1800) shares for the May-10-2024 Expiration Date, $38.00 Strike Price receiving a Premium of $0.6 or $1080 cash flow. | |||||||||
| WHAT SS THE CASH ON CASH % PERCENTAGE GAIN (IF ANY) | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $35.50 | $38.00 | $0.60 | 18 | ||||||
| Premium Only? | CoC% | Share Taken? | DO NOT MEET 3% GOAL | ||||||
| $1,080.00 | 1.69% | PROFIT | |||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this PMCC on > 3x ETF Shares (TNA) | ||||||||
(9) day trade where I'm trying to capture anywhere from 3% - 5% for a monthly Covered Call trade. This trade will make $1080 dollars which represents 1.58% on money invested. Further commentary > With a cost basis of $38, we do this simple 9 day trade for a tidy $1,080 if they take my shares, if not we can ROLLING for credits until we do have our shares taken. | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| PROJECTED PROFIT POTENTIAL (STOCK MOVE + CCW PREM + DIV) | |||||||||
| If I collect everything ... stock appreciation (if any) the entire covered call premium (ie, no buy back) and if a dividend is distributed during this timeframe below is the projected MAX PROFIT projections for this trade. | |||||||||
| Stock Move | Total Prem$ | Dividend | Projected Cash Flow | ||||||
| $0.00 | $1,080.00 | $0.00 | $1,080.00 | ||||||
| Cash on Cash % | |||||||||
| 1.58% | |||||||||
| 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 Lose this | |||||||
| $38.00 | $38.00 | $0.00 | |||||||
| SHARES TAKEN - I WILL NOT LOSE money as my stock purchase price is lower making this a profitable trade. | |||||||||
| MY COST BASIS ON THESE SHARES | |||||||||
| Cost Basis - shares | Acquired? | Shares | Total Cost | ||||||
| $38.00 | Bought | 1800 | -$68,400.00 | ||||||
| How much (if any) am I down on the shares ? | -$4,500.00 | ||||||||
| What does this mean? I'm currently DOWN on the shares purchase by this much ... I DO NOT use CC Prems for cost basis reduction ... so this is what I down on the stock right now or as of this trade | |||||||||
| 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. | |||||||||
| 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. | |||||||||
| 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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