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 | NEW CSP TRADE | ||||||||
| STANDARD CASH SECURED PUT TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW CSP TRADE BEGINS AND ENDS | ||||||||
| 1 | September 6, 2024 | September 6, 2024 | |||||||
SOXL |  | TIME AND DATE STAMP | |||||||
| Friday, September 6, 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 | SOXL260.6 | ||||||||
| Yahoo Summary Page > | https://finance.yahoo.com/quote/SOXL?p=SOXL | ||||||||
| DETAILS FOR THIS CASH SECURED PUT TRADE | |||||||||
| Today a NEW Cash Secured Put position was opened using Direxion Daily Semiconductor Bull 3X Shares (ticker: SOXL) when the stock was trading for $25.66 a shares. I sold (10) Cash Secured Put contract(s) using (1000) shares worth of money for the Sep-6-2024 Expiration Date, $26 Strike Price receiving a Premium of $0.6 of $600 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 CCW on > Direxion Daily Semiconductor Bull 3X Shares (SOXL) | |||||||||
| This SOXL trade begins as a > (1) 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 $600 dollars which represents 2.3% on money invested. | |||||||||
| Further commentary as to why I opened this trade > | |||||||||
| I will be assigned 1,000 shares of SOXL at $29 on Monday. I'm planning to buy another 1,000 shares today (exact timing TBD), but let’s assume I get them at $26.11. This would give me a total of 2,000 shares with a cost basis of $27.55. I could then write a covered call with a $27.50 strike price expiring on September 20th and collect around $1.80 to $2.00, depending on the stock’s price. This would result in $1,000 from the cash-secured put (assigned shares) and approximately $1,900 from the covered call. If the shares are taken, that’s $3,900 in 3 weeks, or a 10.5% return on the invested money. Why am I doing this with SOXL instead of other stocks I'm down on? 1) I have the cash for another 1,000 shares. 2) I believe the market has flushed out most of the semiconductor stock fluff (i.e., near the bottom). 3) SOXL's low was back in October 2024 when the markets were destroyed, falling to $23. I can work with a stock trading at $23 and a cost basis of $27.55, especially with such high premiums. Additionally, since SOXL is a sector-based stock, it’s more diversified than owning NVDA or AMD. Using a basket of stocks avoids single-stock risk, and I’m okay with that. | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | |||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| PROJECTED PROFIT POTENIAL (CSP PREM ONLY) | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $25.66 | Sep-6 | $0.60 | 10 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $26.00 | Sep-6 | 0 | $600.00 | ||||||
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 | ||||||||
| 2.31% | |||||||||
| Cash Invested? | Projected Prem? | CoC% | |||||||
| $26,000.00 | $600.00 | 2.31% | |||||||
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 | |||||||
| $0.60 | $0.30 | $0.06 | |||||||
| 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. | |||||||||
| MY FAVORITE CASH SECURED PUT TRAINING VIDEO | |||||||||
| CLICK HERE TO WATCH CSP TRAINING |  | ||||||||
| https://www.youtube.com/watch?v=JhmmSJBt_dg | |||||||||
| BASIC CSP TRAINING | |||||||||
| 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 a position in this stock. 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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