Opening (IRA): IWM October 18th 199 Monied Covered Call
... for a 196.80 debit.
Comments: Re-upping with a monied covered call in the October 18th cycle. I left some money on the table by taking profit early. However, I don't want to be as aggressive as I usually am from a delta standpoint, since I already made money in the cycle, albeit after somewhat of a rollercoaster July/August.
Instead of selling the -75 delta call against as I usually do, I'm selling the -84 against, resulting in a net delta metric of around 16. The 16 delta strike is associated with 2 x the expected move, which is why I'm choosing that short call strike ... .
Metrics:
Buying Power Effect/Break Even: 196.80
Max Profit: 2.20
ROC at Max: 1.12%
50% Max: 1.10
ROC at 50% Max: .56%
I'll generally look to take profit at 50% max; roll in-profit short call out if and when the setup converges on +30 delta.
Comments: Re-upping with a monied covered call in the October 18th cycle. I left some money on the table by taking profit early. However, I don't want to be as aggressive as I usually am from a delta standpoint, since I already made money in the cycle, albeit after somewhat of a rollercoaster July/August.
Instead of selling the -75 delta call against as I usually do, I'm selling the -84 against, resulting in a net delta metric of around 16. The 16 delta strike is associated with 2 x the expected move, which is why I'm choosing that short call strike ... .
Metrics:
Buying Power Effect/Break Even: 196.80
Max Profit: 2.20
ROC at Max: 1.12%
50% Max: 1.10
ROC at 50% Max: .56%
I'll generally look to take profit at 50% max; roll in-profit short call out if and when the setup converges on +30 delta.
Trade active
As with my QQQ and SPY, rolling the in-profit short call down and out to the November 15th 193 for a 7.14 credit (a credit that exceeds the amount of strike destruction). 189.66 break even; 3.34 max; 1.76% ROC at max; net delta 19.61.Note
9/25 Dividend: 0.752193/share; 775.22/ONE lot. 188.91 break even (incl. dividends).Trade closed manually
Closed for a 191.28 credit; 1.62 ($163) profit; 2.37 ($237) with dividends.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.