| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW PMCC TRADES | ||||||||
| STANDARD POOR MAN'S COVERED CALL TRADE IS NOW | ROLLED | ||||||||
Today I ROLLED (Closed then Opened) a CCW trade basically at once and have consolidated the trades here. | TIME AND DATE STAMP | ||||||||
| Thursday, November 30, 2023 | |||||||||
| CLOSED ORIGINAL CCW TRADE > DETAILS PREMIUM PROFIT ONLY | |||||||||
| Chevron Corporation | CVX |  | |||||||
| CLOSED CCW TRADE DETAILS | |||||||||
| ORIGINAL CCW TRADE DETAILS BELOW (OPEN) | |||||||||
| On Nov-30 I placed this original trade and below are the details of that trade. | |||||||||
| Strike Price was | Strike Price | Days | |||||||
| $144.39 | $145.00 | 16 | |||||||
| Premium was | Buy Back was | Total Cash Flow I made | |||||||
| $1.63 | $0.37 | $630.00 | |||||||
AS THE TRADE PROGRESSED, THE OPTION FELL, OPTION PROFIT WAS AVAILABLE SO I DECIDED TO CLOSE THIS TRADE. | -50% Rule? | Percentage Down | |||||||
| YES | -77.30% | ||||||||
| COMMENTARY AS TO WHY I CLOSED THIS TRADE | |||||||||
| In this case, the Covered Call (CCW) option where I received more premium then I had to pay back was profitable | |||||||||
| CVX > With this option expiring this week I decided to take this profit and to use it as an opportunity to write a 30-day cover call using the December 29th expiration date and it turns out I can pick up over $1,300 so we give up $200 in profit on this trade by buying it back early and we now potentially can make $1,300 and also have my shares taken away selling the leaps call option for a profit making the entire trade a 22% cash on cash game | |||||||||
| ROLLED CCW TRADE DETAILS | |||||||||
| NEW CCW TRADE (ROLLED) DETAILS BELOW (OPEN) | |||||||||
| Today, Nov-30 I placed this NEW CCW trade and below are the details of that trade. | |||||||||
| Strike Price was | Strike Price | Expire | Days | ||||||
| $143.06 | $145.00 | Dec-29 | 29 | ||||||
| NEW Premium | Contracts | Projected Cash Flow | |||||||
| $2.58 | 5 | $1,290.00 | |||||||
| Projected Cash Flow | |||||||||
| -34.86% | |||||||||
| COMMENTARY AS TO WHY I OPENED THIS TRADE | |||||||||
| WHY I OPENED this CCW on CVX > WHY I OPENED this CCW on CVX > Chevron (CVX) I've decided to buy this option back pocketing over $600 of the $800 I could have made using this as an opportunity to write a 30-day covered call making another $1,300 which if my shares were taken away at this strike price this entire trade would be a green trade - IF my shares are taken at this strike price, my expected LEAPS value will be $14.923 , my cost basis is $14.6 IF my shares are taken at this strike price, my expected LEAPS value will be $ $14.92 , my cost basis is $ $14.60 | ||||||||
| USING THIS LEAPS CALL OPTION, HOW MUCH PREMIUM ? | |||||||||
| If my shares are taken, that means the stock has moved above my strike price of $ which means I will make both the Covered Call Premium of $1290 and I will basically have to SELL my LEAPS call option which is projected to be priced at $. This will result in a I will have used this LEAPS call option for () trades. | |||||||||
| LEAPS CALL OPTION | |||||||||
| DETAILS OF THE LEAPS CALL OPTION I PURCHASED | |||||||||
| Below is the LEAPS Call Option purchase information. The performance part is based on a DELTA MOVE in the LEAPS vs the ACTUAL stock move so the numbers are as close as I can get them as DELTAs can change | |||||||||
| Symbol | Expiration | Strike | Investment | ||||||
| CVX | Apr2024 | $135.00 | -$7,300.00 | ||||||
| Contracts | Controlling shares | Delta | Paid? | ||||||
| 5 | 500 | 0.70 | $14.60 | ||||||
| The Current LEAPS value > | Current Value | $13.95 | |||||||
| I AM CURRENTLY (+) or (-) this amount starting this trade > | $0.65 | ||||||||
| The LEAPS value will move higher > | Projected Value | $14.92 | |||||||
| The 'Projected Value' is based on where the LEAPS is valued at the start of this trade and where the LEAPS value will be at the strike price. | |||||||||
| USING THIS LEAPS CALL OPTION, HOW MUCH PREMIUM ? | |||||||||
| Below are all of the Covered Calls I have sold while owning this position. It does includes the current active Covered Call Trade. | |||||||||
| Date Opened | Date Closed | Cash Flow | CoC% +/- | ||||||
| Nov-14 | Nov-30 | $630.00 | 8.63% | ||||||
| Nov-30 | Dec-29 | $1,290.00 | 17.67% | ||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #VALUE! | |||||||||
| 0.00% | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| #DIV/0! | |||||||||
| $1,920.00 | 26.30% | ||||||||
| 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. | |||||||||
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| 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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