| All rights reserved - Core Position Trading, LLC-2024 | |||||||||
 | NEW PMCC TRADE | ||||||||
| STANDARD POOR MAN'S COVERED CALL TRADE IS NOW | OPEN | ||||||||
| FIRST TRADE USING THIS LEAPS CALL OPTION | |||||||||
| DAYS | THIS NEW PMCC CCW TRADE BEGINS AND ENDS | ||||||||
| 30 | August 7, 2024 | September 6, 2024 | |||||||
CVX |  | TIME AND DATE STAMP | |||||||
| Wednesday, August 7, 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'. | |||||||||
| TRACK THE ENTIRE TRADE PROGRESS HERE > Click Link | View Chart-CVX | ||||||||
| UNIQUE TRADE IDENTIFIER | CVX1501.44 | ||||||||
| COVERED CALL | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using (CVX) | |||||||||
Chevron Corp was trading for $145.03 a share when I placed this trade. I then sold (3) Covered Call contract(s) using/controlling (1.44) shares for the September-6-2024 Expiration Date, $150.00 Strike Price receiving a Premium of $1.44 or $432 in up front cash flow to begin this trade. I used a LIMIT ORDER trying to gain the MID price which in this case I was able. | |||||||||
| PROJECTED PROFIT POTENTIAL (IF SHARES ARE NOT TAKEN) | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $145.03 | Aug-7 | $1.44 | 3 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $150.00 | Sep-6 | 30 | $432.00 | ||||||
| PREMIUM ONLY CALCULATIONS | Projected CoC% gain | ||||||||
| This is the money invested > | $12,081.00 | 3.58% | |||||||
| 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 $150 which means I will make both the Covered Call Premium of $1.44 and I will basically have to SELL my LEAPS call option which is projected to be priced at $-40.27. 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 (30) trades. | |||||||||
| TOTAL CLOSEOUT RETURNS ON MONEY INVESTED | |||||||||
CLOSEOUT equals LEAPS sold + any Covered Call premiums collected | CLOSEOUT Projections | CLOSEOUT CoC% +/- | |||||||
| $1,876.63 | 15.53% | ||||||||
| 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 PMCC Trade on > (Chevron Corp) | |||||||||
| This trade on CVX starts out as a > (30) day trade where Im trying to capture anywhere from 3% - 5% for a monthly Covered Call Trade. This trade will make $432 dollars which represents 3.57% on money invested. | |||||||||
| Further commentary and feelings on this trade | |||||||||
| CVX earnings has past, the stock is treading water , I figure this is a good time to get in the game as oil itself is down near $72 ... which could be both are at near term bottom's giving us a nice chance to move higher > American Bulls say this about the stock pattern > Signal Update Our system’s recommendation today is to STAY IN CASH. The previous SELL signal was issued on 07/29/2024, 8 days ago, when the stock price was 157.10. Since then CVX has fallen by -8.83%. Market Outlook The market is finally giving hints of a bullish resurgence. Today a bullish pattern is detected. Based on this pattern, in response to emerging market bullishness the system established new confirmation and stop loss levels. The signal tells us to STAY IN CASH, but the chance of a bullish confirmation that will change the signal to BUY is quite high. The Delayed Intraday Module is ON. We strongly suggest you to follow the price action on an intraday basis in order to profit most from the early phase of a possible bull run. | |||||||||
| With this new Strike Price, what is the projected LEAPS Value? | |||||||||
| If this trades as its projected, I will make money on the LEAPS Call Option > IF my shares are taken at this strike price, my expected LEAPS value will be $45.085433 , my cost basis is $-40.27 | |||||||||
| GOLDEN RULES OF COVERED CALL WRITING (DIVIDEND EX-DATE) | |||||||||
| WILL COMPANY HAVE AN EX-DATE | Verify-CVX | YES | |||||||
| 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 | |||||||
| $1.44 | $0.72 | $0.14 | |||||||
| 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 | |||||||||
 | CLOSED TRADE ENDS | NEW TRADE BEGINS |  | |||||||
| 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 | ||||||
| CVX | Jan2024 | $105.00 | $12,081.00 | ||||||
| Contracts | Controlling shares | Delta | Paid? | ||||||
| 3 | 300 | 0.9689 | -$40.27 | ||||||
| The Current LEAPS value > | Current Value | $40.27 | |||||||
| I AM CURRENTLY (+) or (-) this amount starting this trade > | $0.00 | ||||||||
| The LEAPS value will move higher > | Projected Value | $45.09 | |||||||
| 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. | |||||||||
| THE INITIAL TRADE SETUP FOR THIS TRADE | |||||||||
| - | |||||||||
| 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 | Expire/Closed | Cash Flow | CoC% +/- | ||||||
| Aug-7 | Sep-6 | $432.00 | 3.58% | ||||||
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| $432.00 | 3.58% | ||||||||
| 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 | |||||||||
| Disclaimer - Yes - at the time of this posting I do own LEAPS Call Options. That could mean in my taxable , non-taxable accounts or both. I am by no means recommending this stock for purchase | |||||||||
| 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 | |||||||||
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