| 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 | ||||||||
| 28 | June 20, 2025 | July 18, 2025 | |||||||
SMCX |  | TIME AND DATE STAMP | |||||||
| Friday, June 20, 2025 | |||||||||
| Defiance Daily Target 2X Long SMCI 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 | SMCX352.5 | ||||||||
| Yahoo Summary Page > | https://finance.yahoo.com/quote/SMCX?p=SMCX | ||||||||
| DETAILS FOR THIS CASH SECURED PUT TRADE | |||||||||
| Today a NEW Cash Secured Put position was opened using Defiance Daily Target 2X Long SMCI ETF (ticker: SMCX) when the stock was trading for $42.86 a shares. I sold (5) Cash Secured Put contract(s) using (500) shares worth of money for the May-18-2025 Expiration Date, $35 Strike Price receiving a Premium of $2.5 of $1250 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 > SMCX | |||||||||
| This trade begins as a (28) 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 $1250 which is 7.14% on money invested | |||||||||
| Further commentary as to why I opened this trade > | |||||||||
| SMCX ( 2x Leveraged ETF to Super Micro ) > As I’ve mentioned in my previous trades, SMCI appears to have moved past most—if not all—of the bad news, and is now starting to trend higher. That said, it remains range-bound in the short term. Looking at the chart for SMCX, the 2x leveraged ETF tracking SMCI, we can see that the $35 strike represents a solid near-term support level. This makes the setup attractive: if the trade continues moving higher, I can look to buy it back for a profit. On the other hand, if the price pulls back toward $35 and I’m assigned the shares, I’d be more than comfortable starting a new position there and writing another 30-day covered call from that point. Either way, this trade offers a strong 7.2% cash-on-cash return over 30 days, with a favorable balance of risk and reward. | |||||||||
| 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 $1250. 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 $5.9 (hypothetical based on the trade numbers at the time of this post) so that would be $2.5 for trade #1 and $5.9 for trade #2 which would equal (these being 2 week trades for each) $8.4 in ~2 weeks | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | |||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| PROJECTED PROFIT POTENIAL (CSP PREM ONLY) | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $42.86 | Jun-20 | $2.50 | 5 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $35.00 | Jul-18 | 28 | $1,250.00 | ||||||
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 | ||||||||
| 7.14% | |||||||||
| Cash Invested? | Projected Prem? | CoC% | |||||||
| $17,500.00 | $1,250.00 | 7.14% | |||||||
| 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 | |||||||
| $2.50 | $1.25 | $0.25 | |||||||
| 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 | |||||||||
