| All rights reserved - Core Position Trading, LLC - 2026 | |||||||||
 | ROLLED CCW TRADE | ||||||||
| STANDARD BLENDED COVERED CALL TRADE IS NOW | OPEN | ||||||||
| A “blended” trade refers to a situation where I initially purchased shares of a stock or ETF, and as the price declined, I chose not to average down by buying more shares. Instead, I purchased deep in-the-money LEAPS call options (typically with a 0.98 delta or higher) to closely mimic stock ownership. By using this approach and applying the proper calculations, I was able to lower my overall cost basis more efficiently compared to simply buying additional shares. | |||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 11 | May 4, 2026 | May 15, 2026 | |||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
METU | IRA | TIME AND DATE STAMP | |||||||
| Monday, May 4, 2026 | |||||||||
| 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 | View Chart-METU | ||||||||
| UNIQUE TRADE IDENTIFIER | METU260.64 | ||||||||
| COVERED CALL | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using (METU) | |||||||||
| METU (2x Leveraged ETF to Facebook) > METU (2x Leveraged ETF to Facebook) > BELENDED TRADE (Shares + LEAPS) With META (Facebook) releasing earnings and some of the short-term “fluff” coming out of the stock, I believe we may be approaching a compelling opportunity to gain exposure to one of the strongest and most profitable companies in the Mag-7. To take advantage of this setup, we’re implementing a “Blended Trade” approach. I am scheduled to be assigned shares on Monday at $28 from a previously sold cash-secured put. Rather than simply holding the shares, we’re enhancing the position by stepping in today and purchasing 35 LEAPS call options, specifically the ~99 delta LEAPS. This allows us to: Increase exposure in a capital-efficient way > Maintain stock-like behavior with minimal time decay > Improve the overall structure of the position > As a result, we effectively reduce our cost basis from $28 on the assigned shares to a new blended cost basis (shares + LEAPS) of $25.90. > This is a strategic way to turn assignment into an advantage—improving positioning immediately without needing the stock to move higher first. > More to come as we manage this position. | |||||||||
| PROJECTED PROFIT POTENTIAL (IF SHARES ARE NOT TAKEN) | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $24.70 | May-4 | $0.64 | 50 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $26.00 | May-15 | 11 | $3,200.00 | ||||||
| PREMIUM ONLY CALCULATIONS | Projected CoC% gain | ||||||||
| This is the money invested > | $129,500.00 | 2.47% | |||||||
| WHAT IF YOUR SHARES ARE TAKEN? (CLOSEOUT LEAPS SOLD) | |||||||||
| If my shares are called away, it means the stock has risen above my $26 strike price. In that case, I will keep the $0.64 covered call premium and sell both my stock and LEAPS call option as planned. This SHOULD results in a break-even with the stock and LEAPS or a small profit. This is the expectation. (lose money on stock/make money on LEAPS) | |||||||||
| TOTAL CLOSEOUT RETURNS ON MONEY INVESTED | |||||||||
CLOSEOUT equals LEAPS sold + any Covered Call premiums collected | CLOSEOUT Projections | CLOSEOUT CoC% +/- | |||||||
| $7,900.00 | 6.10% | ||||||||
| 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 > (METU) | |||||||||
| This trade on METU starts out as a > (11) day trade where Im trying to capture anywhere from 3% - 5% for a monthly Covered Call Trade. This trade will make $3200 dollars which represents 3.81% 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 | |||||||||
| METU (2x Leveraged ETF to Facebook) > METU (2x Leveraged ETF to Facebook) > BELENDED TRADE (Shares + LEAPS) With META (Facebook) releasing earnings and some of the short-term “fluff” coming out of the stock, I believe we may be approaching a compelling opportunity to gain exposure to one of the strongest and most profitable companies in the Mag-7. To take advantage of this setup, we’re implementing a “Blended Trade” approach. I am scheduled to be assigned shares on Monday at $28 from a previously sold cash-secured put. Rather than simply holding the shares, we’re enhancing the position by stepping in today and purchasing 35 LEAPS call options, specifically the ~99 delta LEAPS. This allows us to: Increase exposure in a capital-efficient way > Maintain stock-like behavior with minimal time decay > Improve the overall structure of the position > As a result, we effectively reduce our cost basis from $28 on the assigned shares to a new blended cost basis (shares + LEAPS) of $25.90. > This is a strategic way to turn assignment into an advantage—improving positioning immediately without needing the stock to move higher first. > More to come as we manage this position. | |||||||||
| With this new Strike Price, what ould be the result if shares taken? | |||||||||
| If this trades ends as its projected, I will make money where my LEAPS Call Options will be profitable but my Shares will be sold as a loss. This is calculated and expected and the hopes is that I break even and make my money on the CC premiums. | |||||||||
| > 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-METU | 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-METU | 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 | |||||||
| $0.64 | $0.32 | $0.06 | |||||||
| 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. | |||||||||
 | STOCK/LEAPS CALL OPTION INFORMATION | | |||||||
| STOCK/LEAPS | |||||||||
| DETAILS OF THE STOCK/LEAPS CALL OPTION PURCHASES | |||||||||
| This blended trade brings together shares and deep ITM LEAPS Call Options to reduce my cost basis to a manageable position so I can exit the trade sooner. The idea is to break even on the shares/LEAPS and profit from the premiums I've collected along the way. | |||||||||
STOCK | SHARES | COST | PAID | ||||||
| 1500 | $28.00 | $42,000.00 | |||||||
| At the moment of this trade, I am down on the share purchase -$2.1 | |||||||||
LEAPS | Controlling shares | COST | PAID | ||||||
| 3500 | $12.00 | $42,000.00 | |||||||
| At the moment of this trade, this is the status of my LEAPS > +$0 | |||||||||
BLENDED | Controlling shares | TOTAL INVESTMENT | |||||||
| 5000 | $84,000.00 | ||||||||
| At the moment of this trade, the overall position is +$7900.00000000001 if this current trade closes as planned | |||||||||
| TRACK THE PROGRESS OF EVERY TRADE - LINK BELOW | |||||||||
| https://docs.google.com/spreadsheets/d/e/2PACX-1vTFlRK4nkcaU_C0HfQqo5e35mpifK7U4TMDeaDcZk9Vu1Fz2M8BK3OUIflevUooHxlpiO3YyLz53mAk/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 | |||||||||
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