Opening (IRA): SPY Oct 18th 515 Covered Call
... for a 511.00 debit.
Comments: After taking profit, re-upping here out in October, selling the 84 call against long stock to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call. Going lower delta here, since I've already realized gains for (basically) September.
There is a divvy to be had in Sept, with the last distribution being 1.76, so this will improve the unsexy ROC %-ages somewhat ... .
Metrics:
Buying Power Effect/Break Even: 511.00/share
Max Profit: 4.00 ($400); 5.76 ($576) with dividend, assuming a 1.76 distribution.
ROC at Max: .78% ROC at max; 1.13% ROC (with dividend)
50% Max: 2.00 ($200); 3.76 ($376) (with dividend)
ROC at 50% Max: .39% ROC. 74% ROC (with dividend)
Will generally look to take this off at >50% after the dividend drops or look to roll out in-profit short call to maintain net delta at +25 or less.
Comments: After taking profit, re-upping here out in October, selling the 84 call against long stock to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call. Going lower delta here, since I've already realized gains for (basically) September.
There is a divvy to be had in Sept, with the last distribution being 1.76, so this will improve the unsexy ROC %-ages somewhat ... .
Metrics:
Buying Power Effect/Break Even: 511.00/share
Max Profit: 4.00 ($400); 5.76 ($576) with dividend, assuming a 1.76 distribution.
ROC at Max: .78% ROC at max; 1.13% ROC (with dividend)
50% Max: 2.00 ($200); 3.76 ($376) (with dividend)
ROC at 50% Max: .39% ROC. 74% ROC (with dividend)
Will generally look to take this off at >50% after the dividend drops or look to roll out in-profit short call to maintain net delta at +25 or less.
Trade active
I don't need to roll out here, but am still somewhat gun shy from the last sell-off we had. Rolling the Oct 18th 515 short call to the Nov 15th 500 for a 17.75 credit (a credit that exceeds the "strike destruction"). 493.25 break even; 6.75 max; 1.37% ROC at max (excluding dividends); delta 18.51.Note
9/20 dividend: 1.75 ($175). Break even (with divvies): 491.50; 8.50 max; 1.73% ROC at max.Trade closed manually
Closed for a 496.43 credit; 3.18 ($318) profit; 4.93 ($493) (with dividends). Will re-up at a slightly higher strike here shortly .... .
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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.