| All rights reserved - Core Position Trading, LLC-2023 | |||||||||
 | NEW CCW TRADE | ||||||||
| STANDARD COVERED CALL TRADE IS NOW | OPEN | ||||||||
| DOUBLE MY DIVIDEND COVERED CALL USING THIS BUY & HOLD STOCK | |||||||||
| The idea of 'Double my Dividend' investment strategy is to try to write a covered call on my buy & hold shares during a companies off months to try to pick up a covered call premium equaling the companies quarterly dividend with the goal of *not* having my shares taken. | |||||||||
| DAYS | THIS NEW -3.64 TRADE BEGINS AND ENDS | ||||||||
| 23 | January 3, 2024 | January 26, 2024 | |||||||
MRK |  | TIME AND DATE STAMP | |||||||
| Wednesday, January 3, 2024 | |||||||||
| 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'. | |||||||||
| DETAILS FOR THIS COVERED CALL TRADE | |||||||||
| Today, (5) Covered Call contract(s) were sold on Merck & Co Inc (ticker: MRK) for the Jan-26-2024 Expiration Date, $118 Strike Price for a Premium of $0.78 MRK was trading for $114.36 a share. | |||||||||
| I have owned these shares with an original cost basis of $33.06 | |||||||||
| PREMIUM ONLY TRADE | |||||||||
| This is a 'Double my Dividends' trade where I used a Buy&Hold stock and on the companies 'non event' months I try to write a covered call with premium equalling about what the company pays in a quarterly dividend ... never expecting to have my shares taken ... least thats the plan. | |||||||||
| Stock Price - placed | Date | Total Prem$ | Contracts | ||||||
| $114.36 | Jan-3 | $0.78 | 5 | ||||||
| Strike Price | Expire | Days | Projected Cash Flow | ||||||
| $118.00 | Jan-26 | 23 | $390.00 | ||||||
| Merck & Co Inc > MRK > "Double my Dividend" trade, where I use a 'buy and hold' stock. When it's trading at what I think is the TOP of its range, I execute an OTM Covered Call with the premium basically equaling what a standard quarterly dividend would pay. That's the goal with this trade—nothing more, nothing less. I DO NOT want my shares taken, so I will manage this trade and buy back this option when needed to avoid assignment. > this would be a premium only trade so this trade will make me $0.78 times 500 shares or $390 | |||||||||
| WHATS THE CASH ON CASH PERCENTAGE GAIN | |||||||||
| Stock Price - placed | Strike Price | Total Prem$ | Contracts | ||||||
| $114.36 | $118.00 | $0.78 | 5 | ||||||
| Premium Only? | CoC% | Share Taken? | YES, ~DIVIDEND | ||||||
| $390.00 | 0.68% | PROFIT | |||||||
| MY COST BASIS ON THESE SHARES | |||||||||
| Cost Basis - shares | Acquired? | Shares | Total Cost | ||||||
| $33.06 | Purchased | 0999 | -$33,026.94 | ||||||
| Cost Basis | Strike | Prem | Up or Down? | ||||||
| $33.06 | $118.00 | $0.78 | $85,634.28 | ||||||
| HAVE I SOLD COVERED CALLS? YES > | YES, I WOULD MAKE MONEY | ||||||||
| 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. | |||||||||
| 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. | |||||||||
| Disclaimer - No - at the time of this posting I did not own the shares of this equity ... I risk my own money on this trade and am accountable for the trade results | |||||||||
| 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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