| All rights reserved - Core Position Trading, LLC - 2025 | |||||||||
 | CLOSED PMCC TRADE | ||||||||
| THIS PMCC TRADE IS CLOSED / NO ROLL | CLOSED | ||||||||
| ADDED CASH FLOW | $450.00 | ||||||||
| BUT SHARES ARE DOWN | |||||||||
| BECAUSE I DID NOT ROLL FOR ANOTHER CREDIT, I'M TAKING A 'WAIT AND SEE' APPROACH AND WILL MONITOR THE MARKETS DAILY FOR ANOTHER CHANCE TO PUT THESE SHARES 'IN PLAY' HOPING TO ACHIEVE A PROFIT ON THE COST BASIS OF MY SHARE PURCHASE | |||||||||
| DAYS ON | THIS PMCC TRADE IS CLOSED / NO ROLL | ||||||||
| 2 | January 6, 2025 | January 8, 2025 | |||||||
MRK |  | TIME AND DATE STAMP | |||||||
| Wednesday, January 8, 2025 | |||||||||
| 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-MRK | ||||||||
| UNIQUE TRADE IDENTIFIER | MRK1080.53 | ||||||||
| COVERED CALL | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today, (15) Covered Call contract(s) bought back on Merck & Co Inc (ticker: MRK) | |||||||||
| Because I bought this option back early, I did not make max profit. The final profit / cash flow collected is posted below. Note, instead of making the original premium profit projection of ~$0.53 per share or $0.159, I collected less which equaled ~$450. of the total projected cash flow for this trade. | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I CLOSED this PMCC Trade on > Merck & Co Inc (MRK) | |||||||||
| Can not believe MRK rallied to $102.97 and 1 day later its at $98 ... its rallied from that to $99x , we buy this back because of ALL THE TIME left in this option ... some 25 days and the option fell over -50% ... we buy back and will wait , but will look to ROLL in the coming days as I hope the markets rally | |||||||||
| Details of the option buyback | |||||||||
| The option has fallen such that its down some -56.6% at the time of this buy back and with (23) days left it makes sense to take this off the board and look to roll for another credit using this added time for the next Covered Call. | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| PROJECTED PROFIT POTENTIAL (IF SHARES ARE TAKEN) | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $100.06 | Jan-6 | $0.53 | 15 | ||||||
| Strike Price | Expire | Days | Collected Cash Flow | ||||||
| $108.00 | Jan-31 | 2 | $450.00 | ||||||
| Buy Back | Final Made ? | Total CoC% gain | |||||||
| -$0.23 | $0.30 | 0.88% | |||||||
| 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 | |||||||||
| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) | |||||||||
| Premium | -50% Rule | 10% Rule | |||||||
| $0.53 | $0.27 | $0.05 | |||||||
| 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 | |||||||||
 | LEAPS CALL OPTION INFORMATION | | |||||||
| 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 | Paid | ||||||
| MRK | Mar-21 | $75.00 | $39.48 | ||||||
| Contracts | Controlling shares | Delta | Investment | ||||||
| 5 | 500 | 0.9671 | $50,920.00 | ||||||
| Current Value | Current +/- | ||||||||
| $25.27 | (-) $-8.05 | ||||||||
| HISTORY OF THE LEAPS PURCHASES | |||||||||
| Date | Stock $ | Strike | Paid | Contracts | Total $ | ||||
| 9/27/2024 | $113.22 | $75.00 | -$39.48 | 5 | $19,740.00 | ||||
| 10/11/2024 | $109.50 | Delta | -$34.91 | 5 | $17,455.00 | ||||
| 11/7/2024 | $101.47 | 0.9671 | -$27.45 | 5 | $13,725.00 | ||||
| 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 | Date Closed | Cash Flow | CoC% +/- | ||||||
| Sep-27 | Oct-7 | $695.00 | 1.36% | ||||||
| Oct-11 | Oct-24 | $850.00 | 1.67% | ||||||
| Nov-7 | Nov-22 | $375.00 | 0.74% | ||||||
| Nov-25 | Dec-10 | $375.00 | 0.74% | ||||||
| Jan-6 | Jan-8 | $450.00 | 0.88% | ||||||
| $0.00 | 0.00% | ||||||||
| $0.00 | 0.00% | ||||||||
| $0.00 | 0.00% | ||||||||
| $0.00 | 0.00% | ||||||||
| $0.00 | 0.00% | ||||||||
| $0.00 | 0.00% | ||||||||
| $2,745.00 | 5.39% | ||||||||
| DIVIDEND TREE PURCHASE (IF ANY) | | |||||||
| DIVIDEND TREE | |||||||||
| DETAILS OF THE DIVIDEND STOCK I PURCHASED WITH PROFIT | |||||||||
| Using Covered Call profits , I want to buy dividend paying stocks to provide a passive income for me and my family , below I share if I purchased any | |||||||||
| DID I ADD TO A 'DIVIDEND TREE' WITH THE PROFITS? | |||||||||
| Using Covered Call profits , I want to buy dividend paying stocks to provide a passive income for me and my family , below I share if I purchased any | |||||||||
| DIVIDEND PAYING STOCK | SYM | Date | Shares | Total Cost | |||||
| YieldMax Ultra Option Income Strategy ETF | ULTY | Jan-8 | 47 | $398.56 | |||||
| On Jan - 8 using profits from a trade, I bought 47 shares of ULTY at market - Filled at $8.48 - $400 | |||||||||
| Yahoo Summary Link > | https://finance.yahoo.com/quote/ULTY?p=ULTY | ||||||||
| 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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