| 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 | ||||||||
| 18 | August 4, 2025 | August 22, 2025 | |||||||
MSTX |  | TIME AND DATE STAMP | |||||||
| Monday, August 4, 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 | MSTX381.3 | ||||||||
| 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 $32.15 a share , I Sold (10) (OTM) Covered Call contracts(s) using (1000) shares for the (August)-22-2025 Expiration Date, $38.00 Strike Price receiving a Premium of $1.3 or $1300 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 (18) day trade where I'm trying to capture anywhere from 3% - 5% for a monthly Covered Call trade. This trade will make $1300 dollars which represents 3.42% on money invested. | |||||||||
| Further commentary as to why I opened this trade > | |||||||||
| MSTX (MicroStrategy 2x ETF) > As I mentioned in my weekend update on this MSTX trade ... I will take what the markets give me and we get this 18 day trade off and collect $1,300 in up front premium ... this is my cost basis so in less then a month we collect $1,300 here and $1,400 for the cash secured put ... nice for less than a month's work for this money | |||||||||
| > as with every trade, I will manage this trade as it approaches expiration ... buying back the option if it adheres to my -50% and 0.10 cent guidelines. -50% guideline being, such this option price fall 50% or more in the first 2 weeks I will buy back and look to roll the option - if the this option falls to 0.10 or less (in most cases) I will buy back the option and roll it for another credit if it presents itself. | |||||||||
| WHAT IS THE CASH ON CASH % PERCENTAGE GAIN (IF ANY) | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $32.15 | $38.00 | $1.30 | 10 | ||||||
| PROJECTED PROFIT POTENTIAL (STOCK MOVE + CCW PREM + DIV) | |||||||||
| If I collect everything ... stock appreciation (if any) the entire covered call premium (ie, no buy back) and if a dividend is distributed during this timeframe below is the projected MAX PROFIT projections for this trade. | |||||||||
| Stock Move | Total Prem$ | Dividend | Projected Cash Flow | ||||||
| $0.00 | $1,300.00 | $0.00 | $1,300.00 | ||||||
| Cash on Cash % | |||||||||
| 3.42% | |||||||||
| PROJECTED PREMIUM + DIVIDEND ONLY POTENTIAL (CCW PREM + DIV) | |||||||||
| If the stock finishes below the strike price and my shares are not taken for either the dividend or it finishing in the money at expiration, below is the projected PROFIT projections for this trade. | |||||||||
| Total Prem$ | Dividend | Projected Cash Flow | |||||||
| $1,300.00 | $0.00 | $1,300.00 | |||||||
| Cash on Cash % | |||||||||
| 3.42% | |||||||||
| PROJECTED PREMIUM ONLY POTENTIAL (CCW PREM EXPIRE WORTHLESS) | |||||||||
| If the stock finishes below the strike price and my shares are not taken and no dividend was offered then this becomes a premium trade only and below is the projected PROFIT projections for this trade. | |||||||||
| Total Prem$ | Projected Cash Flow | ||||||||
| $1.30 | $1,300.00 | ||||||||
PREMIUM ONLY | Cash on Cash % | ||||||||
| 3.42% | |||||||||
| 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 TAXABLE 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 | |||||||
| $1.30 | $0.65 | $0.13 | |||||||
| 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 | |||||||
| $38.00 | $38.00 | $0.00 | |||||||
| MY COST BASIS ON THESE SHARES | |||||||||
| Cost Basis - shares | Acquired? | Shares | Total Cost | ||||||
| $38.00 | Bought | 1000 | $38,000.00 | ||||||
| How much (if any) am I down on the shares ? | -$4,170.00 | ||||||||
| 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 | ||||||
| $32.15 | $38.00 | Aug-22 | $1.30 | ||||||
| 100 Shares | IF Sold | Your Projected Profit | |||||||
| $3,215.00 | $3,800.00 | [ Stock Move + Premium - Cost Basis ] | |||||||
| $715.00 | |||||||||
| 22.24% | |||||||||
| MY FAVORITE COVERED CALL TRAINING VIDEO | |||||||||
| CLICK HERE TO WATCH CCW TRAINING |  | ||||||||
| https://youtu.be/gYDt4S6Ixhk | |||||||||
| BASIC CCW 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 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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