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 | NEW CSP TRADE | ||||||||
| STANDARD CASH SECURED PUT TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW CSP TRADE BEGINS AND ENDS | ||||||||
| 8 | August 1, 2024 | August 9, 2024 | |||||||
NVDL |  | TIME AND DATE STAMP | |||||||
| Thursday, August 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 | NVDL431.25 | ||||||||
| DIVIDEND WHEEL TRADE | |||||||||
| The 'Dividend Wheel' trade uses a dividend paying stock that I own , we buy and hold the stock thru its ex-dividend date , collecting the dividend , we then sell the position , using the cash from that sale I will then use the Cash Secured Put to sell weekly(s) CSP's trying to collect what basically equals the per share dividend I just received from said dividend stock I sold ... we will do this all month until we much exit the options positions to have the cash back to purchase the dividend stock again prior to the ex-date , collect the dividend and repeat the process. Taking ALL added cash flow and buying MORE shares of this dividend paying stock. | |||||||||
| For this dividend wheel I sold my YMAX ( SOLD YMAX @ $18.16for $27,240) with the idea that once the stock/funds ex-date approaches we will re-enter this position. | |||||||||
| DETAILS FOR THIS CASH SECURED PUT TRADE | |||||||||
| Today a NEW Cash Secured Put position was opened using NVDL (ticker: NVDL) when the stock was trading for $51.19 a shares. I sold (5) Cash Secured Put contract(s) using (1000) shares worth of money for the Aug-9-2024 Expiration Date, $43 Strike Price receiving a Premium of $1.25 of $625 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 > NVDL | |||||||||
| This trade starts out as an (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 $625 dollars which represents 2.9% on money invested. | |||||||||
| Further Commentary as to why I did this trade | |||||||||
| Dividend Wheel using YMAX money I've saved > as they do not have an ex-date until ~Aug-15th so the hope is to just cherry pick OTM strikes and not be assigned ... we use NVDL use trade , NVDA would have to fall -8% for this to take , it very well could but Im guessing with NVDA already down to $109 this might hold up and not be assigned THIS TRADE WILL RENDER ~34 MORE SHARES IN YMAX | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | |||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| PROJECTED PROFIT POTENIAL (CSP PREM ONLY) | |||||||||
| Being this is a Premium only trade, I will make MAX Profit if assigned the shares or expiring OTM worthless | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $51.19 | Aug-1 | $1.25 | 5 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $43.00 | Aug-9 | 8 | $625.00 | ||||||
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 | ||||||||
| 2.91% | |||||||||
| Cash Invested? | Projected Prem? | CoC% | |||||||
| $21,500.00 | $625.00 | 2.91% | |||||||
CLOSE TO 3% | |||||||||
| 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 | |||||||
| $1.25 | $0.63 | $0.13 | |||||||
| 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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