| All rights reserved - Core Position Trading, LLC - 2026 | ||||||||||||||||||
 | NEW CCW TRADE | |||||||||||||||||
| NEW (OTM) COVERED CALL TRADE IS NOW | OPEN | |||||||||||||||||
| I structured this OTM Covered Call by purchasing a 99 Delta call option instead of the buying the shares. This saves me considerable up front capital to support this trade. The 99 Delta call option details are listed below. If you wanted to follow this trade with me you could just purchase the shares outright and use the same strike and expire date. | ||||||||||||||||||
| DAYS | THIS NEW CCW TRADE BEGINS AND ENDS | |||||||||||||||||
| 10 | June 30, 2026 | July 10, 2026 | ||||||||||||||||
| IREN | TIME AND DATE STAMP | |||||||||||||||||
| TQQQ (3x leveraged ETF to Nasdaq) | Tuesday, June 30, 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 | IREN501.75 | |||||||||||||||||
| Yahoo Summary Page > . | https://finance.yahoo.com/quote/IREN?p=IREN | |||||||||||||||||
| - | ||||||||||||||||||
| DETAILS FOR THIS COVERED CALL TRADE | ||||||||||||||||||
| Today a NEW Covered Call position was opened using IREN | ||||||||||||||||||
When the stock was trading for $46.14 a share , I Sold (40) (OTM) Covered Call contracts(s) using (4000) shares for the Jul-10 Expiration Date, $50.00 Strike Price receiving a Premium of $1.75 or $7000 in upfront cash flow.
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| COMMENTARY AS TO WHY I OPENED THIS TRADE | ||||||||||||||||||
| WHY I OPENED this CCW on > IREN | ||||||||||||||||||
| This IREN begins as a (10) day trade where Im trying to capture anywhere from 3% - 5% for a monthly Covered Call Trade. This trade will make $7000 dollars which represents 2.16% cash on cash % gain on money invested if the trade closes as projected. | ||||||||||||||||||
| Further commentary as to why I opened this trade | ||||||||||||||||||
| IREN > If you remember, I originally established this position using an in-the-money covered call when the stock was trading around $61, selecting the $54 strike. The stock eventually fell well below that level, leaving me holding the position. Today, with the stock trading at $46.12, I decided to double down by adding to the trade. Doing so lowered my overall stock-equivalent cost basis to $50.06. As part of the adjustment, my 99-delta call options declined in value from $43.42 to $32.06. However, after accounting for all of the covered call premiums collected throughout the trade, my adjusted cost basis on the overall position is now $50.06. With that new cost basis, I'm selling the $50 strike covered call. I'm essentially giving back just $0.06 to position the trade for an exit. If all goes as planned, this should allow us to close the position clean and green with an overall profit. | ||||||||||||||||||
| PROJECTED CCW PREM ONLY | ||||||||||||||||||
| COST BASIS | STRIKE | PREM | EXPIRATION | |||||||||||||||
| $50.06 | $50.00 | $1.75 | Jul-10 | |||||||||||||||
| DAYS | Projected Cash Flow | |||||||||||||||||
| 10 | $7,000.00 | |||||||||||||||||
| - | Cash on Cash % | |||||||||||||||||
| - | 2.16% | |||||||||||||||||
| 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. | ||||||||||||||||||
| - | ||||||||||||||||||
| THIS TRADE WAS PLACED INSIDE MY NON-TAXABLE IRA ACCOUNT | ||||||||||||||||||
| NO EARNINGS DURING THIS TIMEFRAME | ||||||||||||||||||
| NO EX-DIVIDEND DATE DURING THIS TIMEFRAME | ||||||||||||||||||
| GOLDEN RULES OF COVERED CALL WRITING (AVOIDING EARNINGS) | ||||||||||||||||||
| WILL THEY HAVE EARNINGS? | NO | |||||||||||||||||
| WILL COMPANY HAVE AN EX-DATE | NO | |||||||||||||||||
| Try to avoid Earnings Reports > Earnings can be a stocks most volitile moment so its important to try to avoid writing a covered call thru or near earnings. Even great stocks can move +/- 10% on earnings > Try to avoid EX-Dates > Companies that have dividends will trade differently in and around its EX-Date ... keep this in mind when writing a covered call as you might have your shares taken if its profitable for the Call Buyer. | ||||||||||||||||||
| -50% , -10% RULES (PRICES WHEN I MIGHT BUY BACK) | ||||||||||||||||||
| Premium | -50% Rule | 10% Rule | ||||||||||||||||
| $1.75 | $0.88 | $0.18 | ||||||||||||||||
| What does this mean? If within the first week the option falls 50% I will buy back the option and look to roll for another credit ... if the option falls to 10% of the value, I will buy back and roll. | ||||||||||||||||||
| WHAT IF MY "SHARES" ARE TAKEN? (ie, ASSIGNED) | ||||||||||||||||||
| What if my shares were expectedly taken on this trade prior to expiration or I didn't manage it correctly by ending the trade early if I didn't want my shares taken prior to the expire date? | ||||||||||||||||||
| Cost Basis - per share | Shares taken | I would Profit or Lose this | ||||||||||||||||
| $50.06 | $50.00 | -$240.00 | ||||||||||||||||
| MY COST BASIS ON THE 99 DELTA CALL OPTIONS | ||||||||||||||||||
| 99 DELTA Strike | 99 DELTA cost | Controlling Shares | Total Cost | |||||||||||||||
| $18.00 | $32.06 | 4000 | -$128,240.00 | |||||||||||||||
| DELTA | TimeValueCost | % Cost Paid | 99 DELTA Expiration | |||||||||||||||
| $0.99 | 0 | 0.00% | Jul-17-2026 | |||||||||||||||
| By purchasing the 99 Delta Call Option I was able to simulate stock ownership using $128240. vs using $184560 had I outright bought the shares. | ||||||||||||||||||
 | HOW YOU WOULD BENEFIT FROM THIS TRADE | | ||||||||||||||||
| BUY SHARES > SELL CALL | ||||||||||||||||||
| 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 | |||||||||||||||
| $46.14 | $50.00 | Jul-10 | $1.75 | |||||||||||||||
| 100 Shares | IF Sold | Your Projected Profit | ||||||||||||||||
| $4,614.00 | $5,000.00 | $561.00 | ||||||||||||||||
| Cash on Cash % | ||||||||||||||||||
| 12.16% | ||||||||||||||||||
| 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 - Yes - at the time of this posting I do own shares. That could mean in my taxable , non-taxable accounts or both. I am by no means recommending this stock for purchase | ||||||||||||||||||
| 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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