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 | CCW CLOSEOUT |
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| THIS 99 DELTA COVERED CALL IS CLOSED OUT | CLOSED |
| This trade used the 99 Delta ITM Call Option to support the trade. I did not purchase shares in the traditional ITM Covered Call trade which allowed me to make more CoC % gain on money invested |
| Today I CLOSED this 99 DELTA CCW position on SOXL |
I gave back over $2.10 in TV but I just wanted out of this trade ... good trade and caught a good wave, its $153,000 I want to put else where ... not afraid of SOXL, just wanted out and now I have other plans using other stocks ... to make over $19.971 all told in 2 weeks with this , wow! I will take it.
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This (7) day trade , which had a total of (3) trades makes $20391 in Covered Call trade profit. The stock has traded such that I've bought the last option to close the trade which makes about 15.33% in total on money invested. Below is the full write but I included below the FULL and COMPLETE summary of this trade from start to finish.
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| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT |
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| DETAILS FOR THE LAST COVERED CALL | CLOSED |
| To understand the buy back cost, you remove the intrinsic value from the current real time option price from the current real time stock price ... this would represent the remaining time value left in the option. This is what you subtract from your original covered call premium profit to get your final covered call premium profit for this trade. |
| Date Open | Stock Price | Strike Price | Premium |
| Jun-26 | $218.00 | $227.50 | $17.00 |
| Date Closed | Stock Price | Time Value Cost | Buy Back |
| Jun-30 | $117.07 | -$27.90 | -$44.90 |
| Buy Back Cost |
| -$19,530.00 |
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| DETAILS FOR THE 99 DELTA CALL OPTION | SOLD |
| Date Open | 99 Delta Strike | 99 Delta Cost | 99 Delta Total Cost |
| Jun-26 | $50.00 | $190.00 | -$133,000.00 |
| Date Closed | | 99 Delta Sold | 99 Delta Total Sold |
| Jun-30 | | $220.85 | $154,595.00 |
| 99 Delta Profit/Loss |
| $21,595.00 |
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| UNIQUE TRADE IDENTIFIER | SOXL227.517 |
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| ALL THE SELLING PREMIUM PROFITS/LOSSES |
| TIME VALUE COST OF 99 DELTA | -$1,000.00 |
| TIME VALUE COST OF 99 DELTA | -$84.00 |
| STANDARD ITM CCW | $18,500.00 |
| STANDARD CCW BUY BACK | -$1,500.00 |
| BOUGHT 99 DELTA CALL OPTION / CCW | $2,600.00 |
| STANDARD CCW BUY BACK | -$190.00 |
| LAST COVERED CALL, BUY BACK, SOLD 99 DELTA | -$19,530.00 |
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| TOTAL SHARES PROFIT/LOSS (CASH) | -$1,204.00 |
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| CLOSEOUT TOTALS / BREAKDOWN BY STEP |
| PAID FOR 99 DELTA | -$133,000.00 |
| SOLD 99 DELTA | $154,595.00 |
| TOTAL COVERED CALL PREMIUMS COLLECTED | -$1,204.00 |
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| TOTAL CASH FLOW | $20,391.00 |
| CASH ON CASH % +/- | 15.33% |
| COMPLETE SUMMARY DETAILS | Trade Summary –Managing a 99 Delta Call Option Through Multiple Covered Call Cycles
This trade is a great example of how I use a deep in-the-money 99-delta call option as a stock replacement while continually generating income through covered calls.
I began by purchasing (5) 99-delta call options with the $50 strike for $194. With the stock trading around $249, I immediately sold the $225 in-the-money covered call and collected $37 in premium. As the trade progressed, I bought that covered call back for $3, capturing $34 in net premium while maintaining my long 99-delta position.
As the stock continued to move favorably, I added (2) more 99-delta call options, this time paying $180. With the stock trading around $239.80, I sold the $240 covered call for $13 and later bought it back for just $0.95, collecting an additional $12.05 per share in premium.
By this point, I was controlling the equivalent of 700 shares through (7) 99-delta call options while having already generated substantial income from two successful covered call cycles.
For the final phase of the trade, with the stock trading around $218, I sold the $227.50 covered call and collected $17 in premium. The stock then made a strong move higher, requiring me to buy back that covered call for $44.90, resulting in a realized loss on that final covered call. However, because of the significant premiums harvested during the first two covered call cycles, much of that loss had already been offset.
I then closed the entire campaign by selling all (7) 99-delta call options for $220.25, while the underlying stock was trading around $270.20.
After accounting for:
All realized gains on the (7) 99-delta call options,
Every covered call premium collected (positive)
Every covered call buyback (negative)
And the $1,084 in total time value (extrinsic value) paid when purchasing the 99-delta call options (negative)
the trade produced a final realized profit of approximately $20,391.00
This trade demonstrates an important principle of the strategy: don't judge the campaign by the final covered call alone. While the last covered call resulted in a sizable buyback, the earlier premium collected, combined with the appreciation of the 99-delta call options, more than compensated for it.
Evaluating the entire campaign—not just the final transaction—provides a much more accurate picture of the strategy's overall performance.
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| JUST KEEPING IN THE IRA TO BUILD THE BANK ROLL | YES |
| Because this is in my non-taxable account I'm just going to use the premium to build the account size to make more premium versus buying dividend paying funds will save that for all my taxable accounts and with no tax implications we're not going to put any money in the tax bucket either |
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| This is not a recommendation to buy or sell this stock |
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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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