| All rights reserved - Core Position Trading, LLC - 2026 | |||||||||
 | CCW CLOSEOUT | ||||||||
| THIS 99 DELTA ITM 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 ITM CCW position on TNA | |||||||||
| closing this as the position only had just -0.10 cents to make in TV profit, this trade went perfect with the near term buy back and the sell of the 99 delta being perfect. Love this trade. I'm getting much better at managing this strategy.  In the beginning, I think I got a little lucky. I was closing my 99 Delta call option and still ending up with the projected profit, but I didn't fully understand why it worked. Then I had a couple of trades where my final realized profit didn't match my projected profit, and I knew something in my calculations was missing. The breakthrough came when I realized the 99 Delta call option has to be valued at the exact same stock price where I close the near-term covered call. In this example, TNA was trading at $76.00. I bought back my covered call for $6.10, which meant I paid back only -$0.10 of time value to close the trade early. I then immediately sold my 99 Delta call option using that same stock price. Once I matched both transactions to the identical underlying price, every dollar reconciled perfectly. That's the key. The profit calculation isn't complete until both the covered call and the 99 Delta call option are valued at the same point in time.  Once I started doing that—and after accounting for the time value cost of the 99 Delta call—my projected profit and realized profit matched exactly. At that point, every dollar was accounted for, the trade was fully closed, and there was no money left on the table.And remember, the time value cost of the 99 Delta call option has already been deducted from the covered call premium. So what remains after closing both legs truly represents the final profit on the trade.   | |||||||||
| This trade makes $3600 in Covered Call trade profit. The stock has traded such that I've bought this option which makes $3600 or 2.72% return. | |||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| 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 | $74.15 | $70.00 | $5.40 | ||||||
| Date Closed | Stock Price | Time Value Cost | Buy Back | ||||||
| Jul-1 | $117.07 | -$0.70 | -$6.10 | ||||||
| Buy Back Cost | |||||||||
| -$2,100.00 | |||||||||
| DETAILS FOR THE 99 DELTA CALL OPTION | SOLD | ||||||||
| Date Open | 99 Delta Strike | 99 Delta Cost | 99 Delta Total Cost | ||||||
| Jun-26 | $50.00 | $44.10 | -$132,300.00 | ||||||
| Date Closed | 99 Delta Sold | 99 Delta Total Sold | |||||||
| Jul-1 | $46.00 | $138,000.00 | |||||||
| 99 Delta Profit/Loss | |||||||||
| $5,700.00 | |||||||||
| UNIQUE TRADE IDENTIFIER | TNA705.4 | ||||||||
| CLOSEOUT TOTALS / BREAKDOWN BY STEP | |||||||||
| PAID FOR 99 DELTA | -$132,300.00 | ||||||||
| SOLD 99 DELTA | $138,000.00 | ||||||||
| TOTAL COVERED CALL PREMIUMS COLLECTED | -$2,100.00 | ||||||||
| TOTAL CASH FLOW | $3,600.00 | ||||||||
| CASH ON CASH % +/- | 2.72% | ||||||||
| 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 | |||||||||
| 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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