| All rights reserved - Core Position Trading, LLC - 2026 | |||||||||
 | ITM CCW TRADE | ||||||||
| NEW 99 DELTA ITM COVERED CALL TRADE IS NOW | OPEN | ||||||||
| The 0.99 delta covered call strategy means that instead of purchasing the shares outright, I buy a 2–3 month in-the-money call option (what I refer to as a LEAPS) to simulate stock ownership. The key requirement is that the time value (extrinsic premium) on the LEAPS must be under 0.5%. Additionally, when combining the cost of that time value with the premium received from selling the covered call, the total position must meet my target. A minimum cash-on-cash return of 1.2% per week on an in-the-money covered call basis is preferred. | |||||||||
| DAYS | THIS NEW ITM CCW TRADE BEGINS AND ENDS | ||||||||
| 8 | July 2, 2026 | July 10, 2026 | |||||||
| TNA | TIME AND DATE STAMP | ||||||||
| TNA (3X Leveraged ETF to the Russell 2000) | Thursday, July 2, 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 | TNA675.8 | ||||||||
| Yahoo Summary Page > . | https://finance.yahoo.com/quote/TNA?p=TNA | ||||||||
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| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today a NEW Covered Call position was opened using TNA | |||||||||
| When the stock/ETF was trading for $72 a share I SOLD (20) Covered Call contract(s) using controlling interest via an ITM 99 Delta Call Option (see details below) for (2000) shares for the Jul-17 expiration date, strike price of $67 receiving a premium of $5.8 or $1400 in Time Value premium, making $1400 in up front cash flow to begin this trade with a 99 Delta call option cost basis of $52.65 which when you combine my 99 Delta strike price + my the premium cost I paid this would make my combined share price cost basis be $71.8 to break even on the trade. | |||||||||
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| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this CCW on TNA | |||||||||
TNA (3x Leveraged ETF on the Russell 2000) To me, this is the perfect candidate for the 99 Delta Call Option Strategy. By using the 99-delta call option instead of purchasing shares outright, I'm able to achieve greater downside protection while still collecting essentially the same near-term covered call premium. Here's the comparison: Owning Shares: 1.10% cash-on-cash return > 99 Delta Call Option: 1.67% cash-on-cash return > The difference is significant because I'm generating the same premium while committing less capital. My guideline for a one-week in-the-money covered call or cash-secured put is to target a 1.2% to 1.5% cash-on-cash return. This trade projects a 1.67% return, which exceeds my target while maintaining the downside protection I'm looking for. For me, that's exactly what makes this an attractive setup. | |||||||||
| Power of the 99 Delta ITM Call Option vs Buying the Shares | |||||||||
| Owning Shares = 1.56% CoC vs 99 Delta ITM Call Option's 1.67% on $ invested | |||||||||
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| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | |||||||||
| NO EARNINGS DURING THIS TIMEFRAME | |||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | |||||||||
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| HOW DID I STRUCTURE THIS TRADE? | |||||||||
| I purchased the shares and sold the ITM Covered Call | |||||||||
 | I purchased a 99 Delta Call Option and sold the ITM Covered Call | ||||||||
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| PROJECTED PROFIT POTENTIAL (CCW PREM ONLY) | |||||||||
| If this trade goes as planned, I will have my shares taken at my strike price and I will only collect the difference between the Real Money and Time Value which is the plan | |||||||||
| COST BASIS | STRIKE | PREM | Projected Cash Flow | ||||||
| $72.00 | $67.00 | $5.80 | $1,400.00 | ||||||
| DAYS ON | INTRINSIC VALUE | TIME VALUE | Cash on Cash % | ||||||
| 8 | $5.00 | $0.70 | 1.67% | ||||||
| NOTE: I HAVE TAKEN THE TIME VALUE COST OF THE 99-DELTA CALL OPTION (SEE BELOW) AND SUBTRACTED IT FROM THE PROJECTED TIME VALUE PREMIUM PROFIT OF THE ITM COVERED CALL ABOVE | |||||||||
| The reason I am doing this is because I want my total profit projection to represent 100% of the time value premium collected from the near-term ITM covered call and not rely on any profit projection from the 99-delta call option itself. My objective is for the 99-delta call option to behave as close to a one-for-one stock substitute as possible. By accounting for and subtracting the extrinsic value paid for the 99-delta call option, I have effectively isolated the projected profit to the time value premium generated by the near-term covered call. In doing so, I have created a position that behaves very similarly to a Delta 1 stock position. As a result, all profit projections can be based primarily on the time value premium collected from the near-term ITM covered call. The primary factors that will affect the final realized profit are the stock price at exit, the price paid to close the near-term covered call, and the price received when selling the 99-delta call option. For practical purposes, this trade should behave very similarly to owning the underlying shares and writing an ITM covered call against them, with any differences primarily attributable to option execution, bid-ask spreads, and minor changes in option pricing. | |||||||||
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| MY COST BASIS ON THE 99 DELTA CALL OPTIONS | |||||||||
| 99 DELTA Strike | 99 DELTA cost | Controlling Shares | Total Cost | ||||||
| $30.00 | $41.80 | 2000 | -$83,600.00 | ||||||
| DELTA | TimeValueCost | % Cost Paid | 99 DELTA Expiration | ||||||
| 0.99 | $0.1 | 0.24% | Jul--2026 | ||||||
| By purchasing the LEAPS Call Option I was able to simulate stock ownership using $83600 vs using $144000 had I outright bought the shares. | |||||||||
 | HOW YOU WOULD BENEFIT FROM THIS TRADE | | |||||||
| ITM CC BUY SHARES > SELL CALL | |||||||||
| I BOUGHT THE 99 DELTA ITM CALL OPTION, YOU MIGHT BUY THE SHARES | |||||||||
| 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 | ||||||
| $72.00 | $67.00 | Jul-10 | $5.80 | ||||||
| 100 Shares | IF Sold | Your Projected Profit | |||||||
| $7,200.00 | $6,700.00 | $80.00 | |||||||
| Cash on Cash % | |||||||||
| 1.11% | |||||||||
| CASH SECURED PUT > SAME STRIKE | |||||||||
| I DID THE ITM CC , YOU COULD DO THE CSP , SAME STRIKE | |||||||||
| I bought 99 Delta ITM Call Option and then sold the ITM CCW ... you could select the same Strike Price and sell a Cash Secured Put ... basically the same trade with similair Cash on Cash % on money invested' | |||||||||
| COST BASIS | STRIKE | PREM | Projected Cash Flow | ||||||
| $72.00 | $67.00 | ~ $0.79 | $79.00 | ||||||
| Cash on Cash % | |||||||||
| 1.18% | |||||||||
| 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: I may or may not currently hold a position in the underlying security discussed. You are always welcome to ask whether I am holding a position at the time of discussion. | |||||||||
| 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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