| All rights reserved - Core Position Trading, LLC - 2025 | |||||||||
 | NEW PMCC TRADE | ||||||||
| STANDARD POOR MAN'S COVERED CALL TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW PMCC CCW TRADE BEGINS AND ENDS | ||||||||
| 16 | April 30, 2025 | May 16, 2025 | |||||||
LABU |  | TIME AND DATE STAMP | |||||||
| Wednesday, April 30, 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 | LABU671.54 | ||||||||
| UNIQUE TRADE IDENTIFIER | View Chart-LABU | ||||||||
| COVERED CALL | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using (LABU) | |||||||||
| Direxion Daily S&P Biotech Bull 3X Shares was trading for $57.84 a share when I placed this trade. I then sold (4) Covered Call contract(s) using/controlling (400) shares for the May-16-2025 Expiration Date, $67.00 Strike Price receiving a Premium of $1.54 or $616 in up front cash flow to begin this trade. I used a LIMIT ORDER trying to gain the MID price which in this case I was able. | |||||||||
| PROJECTED PROFIT POTENTIAL (IF SHARES ARE NOT TAKEN) | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $57.84 | Apr-30 | $1.54 | 4 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $67.00 | May-16 | 16 | $616.00 | ||||||
| PREMIUM ONLY CALCULATIONS | Projected CoC% gain | ||||||||
| This is the money invested > | $11,404.00 | 5.40% | |||||||
| 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 $67 which means I will make both the Covered Call Premium of $1.54 and I will basically have to SELL my LEAPS call option which is projected to be priced at $27.97. 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 (1) trades. | |||||||||
| TOTAL CLOSEOUT RETURNS ON MONEY INVESTED | |||||||||
CLOSEOUT equals LEAPS sold + any Covered Call premiums collected | CLOSEOUT Projections | CLOSEOUT CoC% +/- | |||||||
| $769.14 | -153.00% | ||||||||
| 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 > LABU | |||||||||
| This trade on LABU starts out as a > (16) day trade where Im trying to capture anywhere from 3% - 5% for a monthly Covered Call Trade. This trade will make $616 dollars which represents 5.03% premium profit on money invested. Should my shares be taken I could make more, break even of lose money based on where my LEAPS Call Option is priced (see below for those calculations) | |||||||||
| Further commentary and feelings on this trade | |||||||||
| LABU ( 3x Leveraged ETF to the S&P500 Bio Techs ) Feeling that I want to get some premium here in the month of May because my LEAPS call option for this trade expire in the month of June we go ahead and do this 17-day trade pick up this $616 and we hope that the shares move above $67 for which lose money on my leaps call option and with the covered calls that I've collected this could be a 6.7% return on investment and considering this thing fell all the way down to $32 during this time frame I can only feel happy that it's rally back to $57 $58 and might be able to get out of this trade green > IF my shares are taken at this strike price, my expected LEAPS value will be $27.972855 , my cost basis is $-28.51 | |||||||||
| 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 $34.4004 , my cost basis is $-31.2 | |||||||||
| > 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. | |||||||||
| GOLDEN RULES OF COVERED CALL WRITING (AVOIDING EARNINGS) | |||||||||
| WILL THEY HAVE EARNINGS? | Verify-LABU | 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 | Verify-LABU | 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 | |||||||
| $1.54 | $0.77 | $0.15 | |||||||
| 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 TAXABLE 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 | |||||||||
| WHY I TOOK A POSITION IN THIS STOCK > LABU | |||||||||
| LABU ( 3x Leveraged ETF to the S&P500 Bio Techs ) Enter this trade because LABU is near the bottom ... feeling the overall markets will move up and down ... bought these LEAPS call option to support this trade (2) now , my cost basis (or where the stock needs to trade is now $74.99 a share) but my LEAPS call option will be priced $50.x so this strike works perfect , pick up a decent premium + a stock move (ie, LEAPS move) - 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 $50.531835 , my cost basis is $-36.52 | |||||||||
| Symbol | Expiration | Strike | Investment | ||||||
| LABU | Jun2025 | $40.00 | -$7,304.00 | ||||||
| Contracts | Controlling shares | Delta | Paid? | ||||||
| 2 | 200 | 0.9335 | -$36.52 | ||||||
| The Current LEAPS value > | Current Value | $19.45 | |||||||
| I AM CURRENTLY (+) or (-) this amount starting this trade > | -$17.07 | ||||||||
| The LEAPS value will move higher > | Projected Value | $27.97 | |||||||
| The 'Projected Value' is where the LEAPS is valued at the start of this trade and where the LEAPS value will be at the strike price. | |||||||||
| 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% +/- | ||||||
| Mar-19 | Apr-11 | $368.00 | 3.23% | ||||||
| Apr-30 | May-16 | $616.00 | 5.40% | ||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| 0.00% | |||||||||
| $984.00 | 8.63% | ||||||||
| TRACK THE PROGRESS OF EVERY TRADE - LINK BELOW | |||||||||
| https://docs.google.com/spreadsheets/d/e/2PACX-1vTkFUQ6I2Laewehm2it-qIL7OAJQ7TA8BpudaVMVL5qwg7SD7Ue9eYIt7szmOsL9HKN6TSP659yNhc_/pubhtml?gid=705057581&single=true | |||||||||
| - | |||||||||
| 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 | |||||||||
| © 2025 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved | |||||||||
| Disclaimer | |||||||||
Wednesday, April 30, 2025
Tuesday, April 29, 2025
OPEN CSP Trade | MSFU > $770 > 3.67% (17) days > UT (MSFU301.1)
| All rights reserved - Core Position Trading, LLC - 2025 | |||||||||
| NEW CSP TRADE | ||||||||
| STANDARD CASH SECURED PUT TRADE IS NOW | OPEN | ||||||||
| DAYS | THIS NEW CSP TRADE BEGINS AND ENDS | ||||||||
| 17 | April 29, 2025 | May 16, 2025 | |||||||
MSFU |  | TIME AND DATE STAMP | |||||||
| Tuesday, April 29, 2025 | |||||||||
| Direxion Daily MSFT Bull 2X Shares | |||||||||
| 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 | MSFU301.1 | ||||||||
| Yahoo Summary Page > | https://finance.yahoo.com/quote/MSFU?p=MSFU | ||||||||
| DETAILS FOR THIS CASH SECURED PUT TRADE | |||||||||
| Today a NEW Cash Secured Put position was opened using Direxion Daily MSFT Bull 2X Shares (ticker: MSFU) when the stock was trading for $31.82 a shares. I sold (7) Cash Secured Put contract(s) using (700) shares worth of money for the May-16-2025 Expiration Date, $30 Strike Price receiving a Premium of $1.1 of $770. 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 CSP on > MSFU | |||||||||
| This trade begins as a (17) 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 $770. which is 3.67% on money invested | |||||||||
| Further commentary as to why I opened this trade > | |||||||||
| MSFU ( 2x Leveraged ETF to Microsoft ) > Feeling that Microsoft is moving nicely sideways to higher , I feel that if the markets were to sell off they would pull such that the gap fill would be around $29.47 ... if assigned we can then do another 30 days for about +6.1% if needed | |||||||||
| 2 trade plan (Cash Secured Put + Covered Call) if needed a second trade > | |||||||||
| This trade is , trade #1 ... a CSP for a premium profit of $770.. If this trade expires worthless of I buy the option back profitable later , all good but if I were to be assigned the shares and the stock price in a worse case scenario fell an additional -$0 , I could then do an at my cost basis CCW making a possible $2.8 (hypothetical based on the trade numbers at the time of this post) so that would be $1.1 for trade #1 and $2.8 for trade #2 which would equal (these being 2 week trades for each) $3.9 in ~2 weeks | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY KIDS ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | |||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| PROJECTED PROFIT POTENIAL (CSP PREM ONLY) | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $31.82 | Apr-29 | $1.10 | 7 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $30.00 | May-16 | 17 | $770.00 | ||||||
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 | ||||||||
| 3.67% | |||||||||
| Cash Invested? | Projected Prem? | CoC% | |||||||
| $21,000.00 | $770.00 | 3.67% | |||||||
MET 3% GOAL | |||||||||
| 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 | |||||||
| $1.10 | $0.55 | $0.11 | |||||||
| 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 (the cash secured put). 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 | |||||||||
| © 2025 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved | |||||||||
| Disclaimer | |||||||||
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