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| DETAILS FOR THIS COVERED CALL TRADE |
| Today a NEW Covered Call position was opened using ticker: DPST |
| When the stock was trading for $106.26 a share , I Sold (3) (OTM) Covered Call contracts(s) using (300) shares for the (May)-29-2025 Expiration Date, $110.00 Strike Price receiving a Premium of $3.33 or $999 in upfront cash flow. |
| PROJECTED CCW PREM ONLY |
| COST BASIS | STRIKE | PREM | EXPIRATION |
| $110.00 | $110.00 | $3.33 | May-29 |
| DAYS | | | Projected Cash Flow |
| 11 | | | $999.00 |
| - | | | | | | | Cash on Cash % |
| - | | | | | | | 3.03% |
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| COMMENTARY AS TO WHY I OPENED THIS TRADE |
| WHY I OPENED this CCW on > DPST |
| This DPST begins as a (11) day trade where Im trying to capture anywhere from 3% - 5% for a monthly Covered Call Trade. This trade will make $999 dollars which represents 3.03% cash on cash % gain on money invested if the trade closes as projected. |
| Further commentary as to why I opened this trade |
| DPST (3x Leverage ETF to the Regional Banks) > it fell during this past couple weeks and now has bounced with average volume, the banks might be back in favor, our cost basis is $110 as she did a couple CSP's now with a cost of $110 ... nice little 2 week trade. |
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| > 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. |
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| THIS TRADE WAS PLACED INSIDE MY KIDS ACCOUNT |
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| NO EARNINGS DURING THIS TIMEFRAME |
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| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME |
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| GOLDEN RULES OF COVERED CALL WRITING (AVOIDING EARNINGS) |
| WILL THEY HAVE EARNINGS? | NO |
| WILL COMPANY HAVE AN EX-DATE | 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 > 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. |
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| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) |
| Premium | -50% Rule | 10% Rule | |
| $3.33 | $1.67 | $0.33 |
| 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. |
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| 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 |
| $110.00 | $110.00 | $0.00 |
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| MY COST BASIS ON THESE SHARES |
| Cost Basis - shares | Acquired? | Shares | Total Cost |
| $110.00 | Bought | 300 | $33,000.00 |
| Current Price | (+/- Share Price) | (+/- Total) | Current Value |
| $106.77 | -$3.23 | -$969.00 | $32,031.00 |
| Cost Basis refers to my purchase price > Cost basis is my purchase price and unless otherwise mentioned I never use my selling premium profits on cost basis reduction. |
| Current Status > Down on the Shares |
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|  | HOW YOU WOULD BENEFIT FROM THIS TRADE | | |
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| 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. |
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| Stock Price was | Strike Price | Expire | Premium |
| $106.26 | $110.00 | May-29 | $3.33 |
| 100 Shares | IF Sold | Your Projected Profit |
| $10,626.00 | $11,000.00 | [ Stock Move + Premium - Cost Basis ] |
| $707.00 |
| 6.65% |
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| MY FAVORITE COVERED CALL TRAINING VIDEO |
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| CLICK HERE TO WATCH CCW TRAINING | | | | |
| https://youtu.be/gYDt4S6Ixhk | | | |
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| BASIC CCW TRAINING | | | |
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| 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. |
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| This is not a recommendation to buy or sell this stock |
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| 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 |
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| 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. |
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| 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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