Opened (IRA): GDX March 15th 27 Monied Covered Call
Updated
... for a 26.21 debit.
Comments: 42.2 IV/32.8% 30-day IV. Before I went to take a nap, added a "rung" on weakness here to my position, buying a one lot and selling a -75 call against. I already have a February monied on (See Post Below), so went out to March for this setup.
The call IV at the 27 strike: 37.32%. The put side at the same strike: 29.49% with their respective maxes being .79 for the 27 monied; .49 for the 27 short put.
As previously noted, this only makes sense in a cash secured environment where you don't get much BP relief by hanging out in the options. This cost 26.21 to put on in the IRA; the 27 short put would cost 26.51. Compare on margin: 26.21 buying power effect for this setup, 3.18 BPE for the 27 short put. Put another way: you generally don't do this setup on margin because it isn't BP efficient.
Metrics:
Buying Power Effect/Cost Basis/Break Even: 26.21
Max Profit (The Short Call Strike Price - Cost Basis): .79 ($79)
ROC %-age At Max: 3.01%/15.70% Annualized
ROC %-age at 50% Max: 1.51%/7.85% Annualized
Comments: 42.2 IV/32.8% 30-day IV. Before I went to take a nap, added a "rung" on weakness here to my position, buying a one lot and selling a -75 call against. I already have a February monied on (See Post Below), so went out to March for this setup.
The call IV at the 27 strike: 37.32%. The put side at the same strike: 29.49% with their respective maxes being .79 for the 27 monied; .49 for the 27 short put.
As previously noted, this only makes sense in a cash secured environment where you don't get much BP relief by hanging out in the options. This cost 26.21 to put on in the IRA; the 27 short put would cost 26.51. Compare on margin: 26.21 buying power effect for this setup, 3.18 BPE for the 27 short put. Put another way: you generally don't do this setup on margin because it isn't BP efficient.
Metrics:
Buying Power Effect/Cost Basis/Break Even: 26.21
Max Profit (The Short Call Strike Price - Cost Basis): .79 ($79)
ROC %-age At Max: 3.01%/15.70% Annualized
ROC %-age at 50% Max: 1.51%/7.85% Annualized
Trade active
Rolled the March 16th 27 Short Call at 50% max to the June 21st 27 for a 1.03 credit. 25.18 Cost Basis.Trade closed: target reached
Out today for 50% max, closing for a 26.09 credit. .91 ($91) profit; 3.61% ROC. Still have the September 20th 29 covered call and the August 16th 22 covered calls on ... .
Related publications
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.