| All rights reserved - Core Position Trading, LLC - 2025 | |||||||||
 | NEW CCW TRADE | ||||||||
| NEW (OTM) COVERED CALL TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 178 | March 25, 2025 | September 19, 2025 | |||||||
MSTX |  | TIME AND DATE STAMP | |||||||
| Tuesday, March 25, 2025 | |||||||||
| Defiance Daily Target 2x Long MSTR ETF | |||||||||
| 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 | MSTX678 | ||||||||
| Yahoo Summary Page > | https://finance.yahoo.com/quote/MSTX?p=MSTX | ||||||||
| COVERED CALL | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using ticker: MSTX | |||||||||
| Defiance Daily Target 2x Long MSTR ETF > when the stock was trading for $36.66 a share , I Sold (4) (OTM) Covered Call contracts(s) using (400) shares for the Sep-19-2025 Expiration Date, $67.00 Strike Price receiving a Premium of $8 or $3200 in upfront cash flow. | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this CCW on > MSTX | |||||||||
| This MSTX trade begins as a (178) day trade where I'm trying to capture anywhere from 3% - 5% for a monthly Covered Call trade. This trade will make $3200 dollars which represents 12.01% on money invested. NOTE = PREMIUM ONLY TRADE (read details below) | |||||||||
| Further commentary as to why I opened this trade > | |||||||||
| MSTX (MicroStrategy 2x ETF) > My cost basis is $66.58 this goes back to a cash secured put (CSP) that I did in 2024 where I was assigned the shares with an $81 strike ... I documented and said that I was going to use $11 (they paid a special ROC dividend of $14.x) of the special dividend they paid at the end of 2024 for cost basis reduction and I did that so my new cost basis on the shares is $66.58 ... I haven't used the shares in a while and I want to get them in the game this will be 12% cash on cash and I will get out of the shares free and clear at the strike price I will take this $3,200 in up front money and probably invest $3,000 of it into a dividend paying stock so for the next 178 days that I have this position on I could at least collect a weekly dividend from something like QDTE or RDTE | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| WHAT IS THE CASH ON CASH % PERCENTAGE GAIN (IF ANY) | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $36.66 | $67.00 | $8.00 | 4 | ||||||
| PROJECTED PROFIT POTENTIAL (STOCK MOVE + CCW PREM + DIV) | |||||||||
| If I collect everything ... stock appreciation (if any) the entire covered call premium (ie, no buy back) and if a dividend is distributed during this timeframe below is the projected MAX PROFIT projections for this trade. | |||||||||
| Stock Move | Total Prem$ | Dividend | Projected Cash Flow | ||||||
| $168.00 | $3,200.00 | $0.00 | $3,368.00 | ||||||
| Cash on Cash % | |||||||||
| 12.65% | |||||||||
| PROJECTED PREMIUM + DIVIDEND ONLY POTENTIAL (CCW PREM + DIV) | |||||||||
| If the stock finishes below the strike price and my shares are not taken for either the dividend or it finishing in the money at expiration, below is the projected PROFIT projections for this trade. | |||||||||
| Total Prem$ | Dividend | Projected Cash Flow | |||||||
| $3,200.00 | 0 | $3,200.00 | |||||||
| Cash on Cash % | |||||||||
| 12.02% | |||||||||
| PROJECTED PREMIUM ONLY POTENTIAL (CCW PREM EXPIRE WORTHLESS) | |||||||||
| If the stock finishes below the strike price and my shares are not taken and no dividend was offered then this becomes a premium trade only and below is the projected PROFIT projections for this trade. | |||||||||
| Total Prem$ | Projected Cash Flow | ||||||||
| $8.00 | $3,200.00 | ||||||||
PREMIUM ONLY | Cash on Cash % | ||||||||
| 12.02% | |||||||||
| 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 | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| GOLDEN RULES OF COVERED CALL WRITING (AVOIDING EARNINGS) | |||||||||
| WILL THEY HAVE EARNINGS? | NO | ||||||||
| Try to avoid Earnings Reports > Earnings can be a stocks most volitile moment so its important to try to avoid writing a covered call thru or near earnings. Even great stocks can move +/- 10% on earnings | |||||||||
| GOLDEN RULES OF COVERED CALL WRITING (DIVIDEND EX-DATE) | |||||||||
| WILL COMPANY HAVE AN EX-DATE | NO | ||||||||
| 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 | |||||||
| $8.00 | $4.00 | $0.80 | |||||||
| 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. | |||||||||
| 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 | |||||||
| $66.58 | $67.00 | $168.00 | |||||||
| MY COST BASIS ON THESE SHARES | |||||||||
| Cost Basis - shares | Acquired? | Shares | Total Cost | ||||||
| $66.58 | Bought | 400 | $26,632.00 | ||||||
| How much (if any) am I down on the shares ? | -$11,968.00 | ||||||||
| 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 | |||||||||
 | HOW YOU WOULD BENEFIT FROM THIS TRADE | | |||||||
| BUY SHARES > SELL CALL | |||||||||
| For this trade, I already own the shares, so my total profit may or may not include stock appreciation. In your case, you would purchase the shares outright at the current trading price I’ve provided. You would then proceed to sell a near-term covered call, aiming to achieve the same premium for the same strike price and expiration date. | |||||||||
| OF COURSE, this is all projected and the final results could have you LOSING MONEY. Ensure you understand this trade and that it meets your risk tolerance. I wish you good luck. | |||||||||
| Stock Price was | Strike Price | Expire | Premium | ||||||
| $36.66 | $67.00 | Sep-19 | $8.00 | ||||||
| 100 Shares | IF Sold | Your Projected Profit | |||||||
| $3,666.00 | $6,700.00 | [ Stock Move + Premium - Cost Basis ] | |||||||
| $3,834.00 | |||||||||
| 104.58% | |||||||||
 | 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? | |||||||||
| Dividend Paying Stock | SYM | Date | Shares | Total Cost | |||||
| Roundhill Small Cap 0DTE Covered Call Strategy ETF | RDTE | Mar-25 | 64 | $2,366.72 | |||||
| On Mar - 28 using profits from a trade, I bought 64 shares of RDTE at market - Filled at $36.98 - $2400 < - > I then took 25% of the total premium profit and bought 17 shares of XDTE paying $46.87 per share for taxes purposes | |||||||||
| Yahoo Summary Link > | https://finance.yahoo.com/quote/FALSE?p=FALSE | ||||||||
 | TAX BUCKET DEPOSIT (IF ANY) | | |||||||
| TAX BUCKET | |||||||||
| DID I SAVE SOME MONEY FOR TAXES? | |||||||||
| Saving money from profits to help pay for taxes is important so I moved over this amount and bought this dividend ETF as a place holder for the tax year | |||||||||
| DIVIDEND PAYING STOCK | SYM | Date | Shares | Total Cost | |||||
| Roundhill S&P 500 0DTE Covered Call Strategy ETF | XDTE | Mar-25 | 17 | $796.79 | |||||
| I took 25% of the total premium profit $-470 and bought (17) shares of XDTE to keep all year and collect dividends on and come tax time I will sell equal dollars in said ETF to pay the tax man | |||||||||
| Yahoo Summary Link > | https://finance.yahoo.com/quote/XDTE | ||||||||
| 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 shares. 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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