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| OPEN CCW | SOXL > $11900 Projected Cash Flow > 14 days > UT (SOXL22537) | |||||||||
| All rights reserved - Core Position Trading, LLC - 2026 | |||||||||
 | NEW CCW TRADE | ||||||||
| NEW (OTM) COVERED CALL TRADE IS NOW | OPEN | ||||||||
| I structured this OTM Covered Call by purchasing a 99 Delta call option instead of the buying the shares. This saves me considerable up front capital to support this trade. The 99 Delta call option details are listed below. If you wanted to follow this trade with me you could just purchase the shares outright and use the same strike and expire date. | |||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | ||||||||
| 5 | June 26, 2026 | July 2, 2026 | |||||||
| SOXL | TIME AND DATE STAMP | ||||||||
| SOXL (3x Leveraged ETF to the Semiconductors ) | Friday, June 26, 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'. | |||||||||
| UNIQUE TRADE IDENTIFIER | SOXL22537 | ||||||||
| Yahoo Summary Page > . | https://finance.yahoo.com/quote/SOXL?p=SOXL | ||||||||
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| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using SOXL | |||||||||
| When the stock was trading for $218 a share , I Sold (7) (OTM) Covered Call contracts(s) using (700) shares for the Jul-2 Expiration Date, $227.5.00 Strike Price receiving a Premium of $17 or $11,900 in upfront cash flow. | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this CCW on > SOXL | |||||||||
| This SOXL begins as a (5) day trade where I'm trying to capture anywhere from 3% - 5% for a monthly Covered Call Trade. This trade will make $11,900 / 6.25% cash on cash % gain on money invested if the trade closes as projected. | |||||||||
| Further commentary as to why I opened this trade | |||||||||
| SOXL (3x Leveraged ETF to the Semiconductors ) After buying back the two in-the-money covered calls at the $225 strike, I added two additional 99-delta call options to lower my overall cost basis. My new adjusted cost basis is approximately $226.42 per share. With that new cost basis, I'm going to sell the $227.50 strike covered call for one week. If the shares are called away, I'll exit the entire position at a profit while also collecting approximately $17,000 in premium. That would represent a very respectable $11,900 net profit for just four days in the trade. This is exactly why I like using the 99-delta strategy. Even when the original trade moves against me, I can adjust my cost basis, continue generating premium, and position myself to exit the trade profitably rather than locking in a loss. Also note that I paid for the time value cost of the 99 Delta with my first in-the-money covered call, so the cost has been paid off, so now this is 100% profit. | |||||||||
| PROJECTED CCW PREM ONLY | |||||||||
| COST BASIS | STRIKE | PREM | EXPIRATION | ||||||
| $226.42 | $227.50 | $17.00 | Jul-2 | ||||||
| DAYS | Projected Cash Flow | ||||||||
| 14 | $11,900.00 | ||||||||
| - | Cash on Cash % | ||||||||
| - | 6.25% | ||||||||
| - | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | |||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
| 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 volatile 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. | |||||||||
| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) | |||||||||
| Premium | -50% Rule | 10% Rule | |||||||
| $17.00 | $8.50 | $1.70 | |||||||
| 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% , I will buy back and roll. | |||||||||
| WHAT IF MY "SHARES" ARE TAKEN? (ie, ASSIGNED) | |||||||||
| 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 | |||||||
| $226.42 | $227.50 | $756.00 | |||||||
| MY COST BASIS ON THE 99 DELTA CALL OPTIONS | |||||||||
| 99 DELTA Strike | 99 DELTA cost | Controlling Shares | Total Cost | ||||||
| $50.00 | $190.00 | 700 | -$133,000.00 | ||||||
| DELTA | Time Value Cost | 99 DELTA Expiration | |||||||
| $0.99 | PAID W/ ITM CC | Jul-17-2026 | |||||||
| By purchasing the 99 Delta Call Option I was able to simulate stock ownership using $133000 vs using $152600 had I outright bought the shares. | |||||||||
 | HOW YOU WOULD BENEFIT FROM THIS TRADE | | |||||||
| BUY SHARES > SELL CALL | |||||||||
| I bought 99 Delta ITM Call Option and then sold the ITM Covered Call ... you could buy the shares and select the same Strike Price for the same ITM Covered Call trade. | |||||||||
| Stock Price was | Strike Price | Expire | Premium | ||||||
| $218.00 | $227.50 | Jul-2 | $17.00 | ||||||
| 100 Shares | IF Sold | Your Projected Profit | |||||||
| $21,800.00 | $22,750.00 | $2,650.00 | |||||||
| Cash on Cash % | |||||||||
| 12.16% | |||||||||
| 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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