Opening (IRA): QQQ October 18th 430 Monied Covered Call
... for a 424.60 debit.
Comments: Re-upping in the Q's after profit taking ... .
As with my IWM position, I'm not being as aggressive as I usually am from a delta standpoint. This is because I've already made money in the cycle and want to give myself a little more room to be wrong since we've had somewhat of a bodice ripper from early August lows. Selling the -84 short call against stock, resulting in a setup with a net delta of around 16.
Metrics:
Buying Power Effect/Break Even: 424.60
Max Profit: 5.40
ROC at Max: 1.27%
50% Max: 2.70
ROC at 50% Max: .64%
Will generally look to take profit at 50% max/roll out in-profit short call if there's a sell-off and the setup's net delta converges on +30.
Comments: Re-upping in the Q's after profit taking ... .
As with my IWM position, I'm not being as aggressive as I usually am from a delta standpoint. This is because I've already made money in the cycle and want to give myself a little more room to be wrong since we've had somewhat of a bodice ripper from early August lows. Selling the -84 short call against stock, resulting in a setup with a net delta of around 16.
Metrics:
Buying Power Effect/Break Even: 424.60
Max Profit: 5.40
ROC at Max: 1.27%
50% Max: 2.70
ROC at 50% Max: .64%
Will generally look to take profit at 50% max/roll out in-profit short call if there's a sell-off and the setup's net delta converges on +30.
Trade active
In 20-20 hindsight, it would've been better to wait for a red day to re-up, but I can kind of fix that here with a roll. Rolling the Oct 18th 430 down and out to the Nov 15th 415 for a 17.32 credit (a credit that exceeds the amount of strike destruction). 407.28 break even; max 7.72; 1.90% ROC at max (excluding September dividends); 19.84 net delta.Trade active
9/23 dividend: .67686/share; 667.69/ONE lot. Break even: 406.60.Trade closed manually
Closing here for a 410.65 debit; 4.05 ($405) profit (including divvies). Will re-up at a slightly higher strike ... .
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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.