NEW UCPTD Trade Alert - PINS - Covered Call (Premium Profit)

All rights reserved - Core Position Trading, LLC - 2020
	NEW TRADE ALERT
Closed a Covered Call position prior to Expiration (Premium Profit)
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'.
Closed a Covered Call position prior to expiration
Pinterest Inc.
TIME AND DATE STAMP | .		August 24, 2020
My brief explanation why I ended this trade early
Pinterest (PINS) Wheel Trade #2 (CWW) Update:
Whether its a wheel trade or any other Selling Premium trade, once the premium I received falls around 50% of that premium received I buy back the option ... I will hold the shares for a day or so, hoping that today's sell off is short lived and I can sell another call ... possibly same strike/expire date ... if not, we'll manage the strike price vs my stock purchase price the best I can ... I pocket this $838 now, look for another opportunity later. -- little research on why PINS is down some -4% today when the markets are higher ... seems PINS got a share price Upgrade BUT was Downgraded from Buy to Neutral ... Wall Street taking some profits today ... hoping this is short lived.
The Headline Krum! (ACTUAL RESULT)
TRADE KRUM!	DAYS	Cash on Cash %	Annualized
$838.96	7	2.41%	125.71%
Below are the details of the Buy Back
ORIGINAL PREM	BUY BACK PRICE	DIFFERENCE	PREMIUM PROFIT
$1.70	$0.86	$0.84	$838.96
Max Profit Projections for this trade (EXPECTATION)
COMPANY	SYMBOL	SHARES	PRICE	TOTAL COST
Pinterest Inc.	PINS	1000	$34.80	$49,530.00
EXPIRATION DATE	DAYS	STRIKE	OPTION	CoC % GAIN
Sep-18	7	$36.00	$1.70
DIVIDEND	DIVIDEND GAIN	OPTION GAIN	STOCK GAIN	TOTAL KRUM
$0.00	$0.00	$1,700.00	$1,200.00	$2,900.00
All calculations above are based on collecting [ Stock move + CCW + DIV if offered]
Always look at a companies chart ... it tells a story and that story could be UP or DOWN
How I could 'Manage' this trade should the stock rise or fall prior to expiration
I could manage this Covered Call - #1 - The stock moves and closes on expiration above my strike price. My shares will be given assigned to the Call Buyer, I will be given cash for my shares (strike price)
I could manage this Covered Call - #2 - The stock does not close at or above my strike by expiration, I will likely not have my shares taken from me. I keep my shares, I keep the Covered Call premium. Trade ends. Shares become available to trade.
I could manage this Covered Call - #3 - Regardless of where the stock moves during the Covered Call timeframe, a news event or Ex-Date prompts the Call buyer or market maker to take my shares before expiration. Most common situation, the stock has moved up and now trades near or above the strike price making it profitable to exercise the Call option early for the Call Buyer to collect the dividend.
Education Corner
Great Covered Call video posted at
Covered Call - Description - A covered call is a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other securities. ... writing (i.e. selling) a call generates income in the form of the premium paid by the option buyer. Source - https://en.wikipedia.org/wiki/Covered_call
Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its performance. I have risked my own money and am accountable for the trade results.
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.
Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com
© 2020 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved				Disclaimer

NEW UCPTD Trade Alert - JPM - CCW Buy Back (Premium Profit)

All rights reserved - Core Position Trading, LLC - 2020
	NEW TRADE ALERT
Closed a Covered Call position prior to Expiration (Premium Profit)
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'.
Closed a Covered Call position prior to expiration
JP Morgan Chase
TIME AND DATE STAMP | .		August 21, 2020
My brief explanation why I ended this trade early
ANOTHER Premium KRUM with JP Morgan - I'll tell ya ... never thought I would be using JMP for so many CCW Krum trades when I bought it back for that CCW+Div Capture play ... but man, this thing trades in a NICE range where I can bank its movement ... buying this back now UNDER my $99 strike WITH Prem credits still ... man, we pick up a Krum and its trading at the low of its range (IMO) and I can wait a bit and write another $100 or so Call on it again ... we'll see.
The Headline Krum! (ACTUAL RESULT)
TRADE KRUM!	DAYS	Cash on Cash %	Annualized
$718.96	16	1.47%	33.58%
Below are the details of the Buy Back
ORIGINAL PREM	BUY BACK PRICE	DIFFERENCE	PREMIUM PROFIT
$2.89	$1.45	$1.44	$718.96
Max Profit Projections for this trade (EXPECTATION)
COMPANY	SYMBOL	SHARES	PRICE	TOTAL COST
JP Morgan Chase	JPM	500	$97.69	$34,800.00
EXPIRATION DATE	DAYS	STRIKE	OPTION	CoC % GAIN
Sep-4	16	$99.00	$2.89
DIVIDEND	DIVIDEND GAIN	OPTION GAIN	STOCK GAIN	TOTAL KRUM
$0.00	$0.00	$1,445.00	$655.00	$2,100.00
All calculations above are based on collecting [ Stock move + CCW + DIV if offered]
Always look at a companies chart ... it tells a story and that story could be UP or DOWN
How I could 'Manage' this trade should the stock rise or fall prior to expiration
I could manage this Cash Secured Put - #1 - The stock moves HIGHER then my strike price and at or before expiration I can either let the option expire worthless as the stock will not be assigned to me considering it is now trading HIGHER then my strike. I can buy back the option cheaper and release the obligation, collecting the difference between what I received and what I paid to release the obligation.
I could manage this Cash Secured Put - #2 - The stock dips below my strike price and I'm assigned the shares OR I can buy back the option prior to expiration, most likely paying more for the option then I was paid, losing money but not being assigned the shares.
Education Corner
Great Covered Call video posted at
Cash Secured Put - Description -The cash-secured put involves writing an at-the-money or out-of-the-money put option and simultaneously setting aside enough cash to buy the stock. The goal is to be assigned and acquire the stock below today's market price. Whether or not the put is assigned, all outcomes are presumably acceptable. The premium income will help the net results in any event. The investor is bullish on the underlying stock and hopes for a temporary downturn in its price. If the stock drops below the strike, the put may be assigned. That would allow the put writer to buy the stock at the strike price. The effective purchase would be even lower: strike price less the premium received. There are two principal risks. First, the stock might not only dip but plummet well below the strike price. The investor must be comfortable with the strike price as an acceptable long-term acquisition price, no matter how low the market goes. Source - https://www.optionseducation.org/strategies/all-strategies/cash-secured-put
Disclaimer - No - at the time of this posting I did not own the shares of this equity. and it probably means I've done a Cash Secured Put ... for which if this trade goes against me I *will* own these shares ... I risk my own money on this trade and am accountable for the trade results.
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.
Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com
© 2020 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved				Disclaimer