"THE KID": OPENING (IRA) IWM SEPT 20TH 125 SHORT PUT
... for a 1.10/contract credit.
Metrics:
Max Loss/Buying Power Effect: Full notional
Max Profit: $110/contract
Break Even on Setup: 123.90 (18.4% discount over where the underlying is currently trading if assigned)
Delta: 10.93 (Current)
Theta: 1.36 (Current)
Notes: While I'm sitting on my hands a bit here, I figured I post one of my kid's "Not A Penny More" IRA trades (See HYG Post Below). She doesn't do a ton, doesn't want to look at stuff a lot (maybe once a month), and is totally unwilling to buy into the ridiculousness of acquiring shares at near all-time-highs. This particular trade was put on some time last week, and she'll look to roll out for a credit once a month post-opex for cost basis reduction until that's no longer productive or until she gets assigned, at which time she'll proceed to sell calls against her shares.
Metrics:
Max Loss/Buying Power Effect: Full notional
Max Profit: $110/contract
Break Even on Setup: 123.90 (18.4% discount over where the underlying is currently trading if assigned)
Delta: 10.93 (Current)
Theta: 1.36 (Current)
Notes: While I'm sitting on my hands a bit here, I figured I post one of my kid's "Not A Penny More" IRA trades (See HYG Post Below). She doesn't do a ton, doesn't want to look at stuff a lot (maybe once a month), and is totally unwilling to buy into the ridiculousness of acquiring shares at near all-time-highs. This particular trade was put on some time last week, and she'll look to roll out for a credit once a month post-opex for cost basis reduction until that's no longer productive or until she gets assigned, at which time she'll proceed to sell calls against her shares.
Trade active:
There's no October available; rolled from Sept to Nov as is for a .49/contract credit and a realized gain of .25 ($25) or so. Total credits collected of 1.59 with a resulting cost basis of 123.41/share.
Trade active:
Post May opex roll from Nov to Dec for a .34 credit. Total credits collected of 1.93 with a resulting cost basis of 123.07 if assigned on the 125 shortie (an 18.9% discount over where IWM is currently trading) with the short put currently valued at 1.91.
Trade active:
Some profit taking: Rolling the Dec 125 to the March 125 for a realized gain of .57 ($57) and a credit of .81. Total credits collected of 2.74 with a resulting cost basis of 122.26 if assigned on the 125, a 20.6% discount over where IWM is currently trading. 2.18 of extrinsic in the short put with delta/theta metrics of 12.81/1.17.
Trade active:
More profit taking: Rolling the March 125 to the June 125 for a realized gain of .40 and a credit of .79. Scratch at 3.53 versus 2.59 extrinsic in the June '20 125 with delta/theta of 13.71/1.06. Might not want to touch that for "a while," kiddo ... . Lol.
Trade closed manually:
Closed it here for 2.00 even; 1.53 ($153 profit). Not exactly huge ROC%, but hey, it's a start ... .
