Opening (IRA): EWZ July 19th 31 Monied Covered Call
Updated
... for a 30.31 debit.
Comments: Decent 30-day IV at 34.0%, but I'm primarily looking to position myself to grab the June dividend. IV is skewed to the put side in this underlying, so the general go-to would be short put, but to grab the dividend, you have to be in stock.
Because I want the extrinsic in the short call to exceed any dividend, I'm basically going at-the-money/slightly monied with the short call and will look to manage the position after the dividend drops. Unfortunately, the distribution has been wildly variant, so it's hard to tell how much extrinsic to keep in the short call to diminish the prospect of being called away early due to some dick exercising their long call early to grab the dividend.
Metrics (Sans Dividend):
Break Even/Buying Power Effect: 30.31
Max Profit: .69
ROC at Max: 2.28%
ROC at 50% Max: 1.14%
Comments: Decent 30-day IV at 34.0%, but I'm primarily looking to position myself to grab the June dividend. IV is skewed to the put side in this underlying, so the general go-to would be short put, but to grab the dividend, you have to be in stock.
Because I want the extrinsic in the short call to exceed any dividend, I'm basically going at-the-money/slightly monied with the short call and will look to manage the position after the dividend drops. Unfortunately, the distribution has been wildly variant, so it's hard to tell how much extrinsic to keep in the short call to diminish the prospect of being called away early due to some dick exercising their long call early to grab the dividend.
Metrics (Sans Dividend):
Break Even/Buying Power Effect: 30.31
Max Profit: .69
ROC at Max: 2.28%
ROC at 50% Max: 1.14%
Trade active
I don't really need to roll this, but price has broken under my short call and is a scant .41 away from my break even, so rolling it out to the Sept 20th 31 for a .57 credit. 29.74 break even.Trade active
Rolled from the Sept 20th 31 out to Dec for a .67 credit. 29.07 break even.Trade active
June 11 ex-divvy: 0.914355/share; 91.44/one lot.Note
28.16 break even, including dividend.Trade active
Rolling the Dec 20th 31 short call down to the Dec 20th 29 short call for a .63 credit; 27.53 break even (inc. dividend); 28.44 (ex. dividend).Trade active
Selling a Dec 20th 24 short put for a .62 credit to convert my position into a covered strangle. 26.91 break even (inc. dividend); 27.82 (ex. dividend).Trade active
Closed the Dec 20th 24 short put at greater than 50% max for a .24/contract debit. Break even now 28.06 (ex. dividends).Trade active
Selling the Dec 20th 26 short put for a .74 credit, converting the setup into a Dec 20th 26/29 covered strangle with a break even of 27.32 (excluding dividends).
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