| All rights reserved - Core Position Trading, LLC - 2020 | ||||
 | NEW TRADE ALERT | |||
| Cash Secured Put Trade opened using a Standard CSP Strategy | ||||
| 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'. | ||||
| NEW Cash Secured Put position was opened on |  | |||
Workhorse Group | ||||
| TIME AND DATE STAMP | . | Monday, October 5, 2020 | |||
| My brief explanation why I ended this trade early | ||||
| NEW Wheel idea ... Workhorse (WKHS) ... I have a little small account that I use strictly for the Poor Man's Covered Call (PMCC) trades I do and haven't really put my time into it ... so I took this opportunity to start a new wheel on WKHS ... picked the Nov-6 expire and the $22.50 strike ... figure it won't get there and if it does, oh well, this CSP is a +15% Cash on Cash trade ... I'll just write covered calls on it if assigned. - I like the chart as I feel its pulled back enough to do this ... see if it holds support ... I suspect if it can not hold that $23/22 ... it could fall to $20 ... we will see | ||||
| The Headline Krum! | ||||
| TRADE KRUM! | DAYS | Cash on Cash % | Annualized | |
| $348.96 | 32 | 15.56% | N/A | |
| Max Profit Projections for this trade (EXPECTATION) | ||||
| COMPANY | SYMBOL | SHARES | PRICE | TOTAL COST |
| Workhorse Group | WKHS | 100 | $22.50 | $2,250.00 |
| EXPIRATION DATE | DAYS | STRIKE | OPTION | CoC % GAIN |
| Nov-6 | 32 | $22.50 | $3.50 | 15.56% |
| DIVIDEND | DIVIDEND GAIN | OPTION GAIN | STOCK GAIN | TOTAL KRUM |
| N/A | N/A | $350.00 | N/A | $350.00 |
| Always look at a companies chart ... it tells a story and that story could be UP or DOWN | ||||
| Education Corner | ||||
| Great Cash Secured Put video posted at www.optionseducation.org | ||||
| 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 - 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 preformance. I have risked my own money and am accountable for the trade results. | ||||
| 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 | |||
