Opening (IRA): USO Jan 17th 66 Covered Call
... for a 64.89 break even.
Comments: With 42 DTE in the January monthly, adding a "rung" to my USO position at strikes better than what I currently have on at the 68, selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. The ROC at max isn't stellar here with the usual metric I'm looking for being at least 2.0%.
Metrics:
Buying Power Effect/Break Even: 64.89/share
Max Profit: 1.11
ROC at Max: 1.71%
50% Max: .56
ROC at 50% Max: .86%
Will generally look to take profit at 50% max, roll out the short call on test of my take profit at 65.45.
Comments: With 42 DTE in the January monthly, adding a "rung" to my USO position at strikes better than what I currently have on at the 68, selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. The ROC at max isn't stellar here with the usual metric I'm looking for being at least 2.0%.
Metrics:
Buying Power Effect/Break Even: 64.89/share
Max Profit: 1.11
ROC at Max: 1.71%
50% Max: .56
ROC at 50% Max: .86%
Will generally look to take profit at 50% max, roll out the short call on test of my take profit at 65.45.
Trade closed manually
Closed for a 65.37 credit; .48 ($48) profit. Still have the January 17th 68 covered calls on ... .
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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.