| All rights reserved - Core Position Trading, LLC - 2025 | |||||||||
 | NEW PAPER TRADE | ||||||||
| PAPER TRADE COVERED CALL IS NOW | OPEN | ||||||||
| THE ENTIRE PURPOSE IS TO CONTINUE THE EDUCATION IN DOWN MARKETS | |||||||||
| As mentioned in a previous members' email, I will be conducting 'paper trades' during these uncertain market conditions to continue our education and discussions on selling premium. I will approach each of these trades as if I were investing real money to maintain integrity, and I will provide educational insights on my entry and exit decisions along the way. | |||||||||
| DAYS | THIS NEW CCW PAPER TRADE BEGINS AND ENDS | ||||||||
| 10 | March 25, 2025 | April 4, 2025 | |||||||
LABU | TIME AND DATE STAMP | ||||||||
| Tuesday, March 25, 2025 | |||||||||
| Direxion Daily S&P Biotech Bull 3X Shares | |||||||||
| DISCLAIMER: This PAPER TRADE is based on this date. I'm not suggesting a move up or down. I'm showing my PAPER TRADE that I have already done. I'm not recommending this stock as a purchase/PAPER TRADE. Think of it like this, I'm 'Showing you the World thru my Eyes'. | |||||||||
| UNIQUE TRADE IDENTIFIER | LABU716.4 | ||||||||
| DETAILS FOR THIS COVERED CALL PAPER TRADE | |||||||||
| Today, (1) Covered Call contract(s) were sold on Direxion Daily S&P Biotech Bull 3X Shares (ticker: LABU) for the Apr-4-2025 Expiration Date, $71 Strike Price for a Premium of $6.4 LABU was trading for $74.98 a share. | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| Today a NEW (ITM) Covered Call Paper Trade position was opened using (ticker: LABU) | |||||||||
| This (10) day trade , where I'm trying to capture anywhere from 3.5% to 4.5% for a 30 days trade will make me a projected 4.75% Cash on Cash on money invested | |||||||||
| Further Commentary as to why I did this trade | |||||||||
LABU ( 3x Leveraged ETF to the S&P500 Bio Techs ) LABU trading at the bottom of the correction hit ~$69 ... so if you bought shares here with near term support being $72 on the chart ... its very likely you would have your shares taken ... and if it broke that near term support and headed back to re-test that $69 strike , you could get off a very profitable @ $71 cost basis for at least $5% 2 week trade | |||||||||
| PROJECTED PROFIT POTENTIAL (CCW PREM ONLY) | |||||||||
| If this trade goes as planned, I will have my shares taken at my strike price and I will only collect the difference between the Real Money and Time Value which is the plan | |||||||||
| COST BASIS | STRIKE | PREM | Projected Cash Flow | ||||||
| $74.98 | $71.00 | $6.40 | $640.00 | ||||||
| DAYS ON | INTRINSIC VALUE | TIME VALUE | Cash on Cash % | ||||||
| 10 | $3.98 | $2.42 | 3.23% | ||||||
| This being an ITM Covered Call ... I did collect the premium of $6.4 but remember that I'm giving away my shares cheaper at $71 or $2.42 in total premium profit | |||||||||
| MY COST BASIS ON THESE SHARES | |||||||||
| Cost Basis - shares | Acquired? | Shares | Total Cost | ||||||
| $74.57 | Bought | 100 | -$7,457.00 | ||||||
 | HOW YOU WOULD BENEFIT FROM THIS TRADE | | |||||||
| ITM CC 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 | ||||||
| $74.98 | $71.00 | Apr-4 | $6.40 | ||||||
| 100 Shares | IF Sold | Your Projected Profit | |||||||
| $100.00 | $7,100.00 | [ Stock Move + Premium - Cost Basis ] | |||||||
| $640.00 | |||||||||
| 8.54% | |||||||||
| MY FAVORITE COVERED CALL TRAINING VIDEO | |||||||||
| CLICK HERE TO WATCH CCW TRAINING |  | ||||||||
| https://youtu.be/gYDt4S6Ixhk | |||||||||
| BASIC CCW TRAINING | |||||||||
| CASH SECURED PUT > SAME STRIKE | |||||||||
| I DID THE ITM CC , YOU COULD DO THE CSP , SAME STRIKE | |||||||||
| I bought shares and then sold the ITM CCW ... you could select the same Strike Price and sell a Cash Secured Put ... basically the same trade with similair Cash on Cash % on money invested' | |||||||||
| COST BASIS | STRIKE | PREM | Projected Cash Flow | ||||||
| $71.00 | $71.00 | ~ $2.41 | $241.00 | ||||||
| Cash on Cash % | |||||||||
| 3.21% | |||||||||
| 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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