Opening (IRA): GDXJ November 17th 35 Covered Call
Updated
... for a 31.42 debit.
Comments: Going covered call (neutral to bullish assumption) on this weakness with a 30 delta short call in the November 17th expiry.
Max Profit: 3.58 ($358)
Break Even: 31.42/share
ROC %-age at Max As a Function of Buying Power Effect: 11.39%
ROC %-age at 50% Max: 5.70%
Comments: Going covered call (neutral to bullish assumption) on this weakness with a 30 delta short call in the November 17th expiry.
Max Profit: 3.58 ($358)
Break Even: 31.42/share
ROC %-age at Max As a Function of Buying Power Effect: 11.39%
ROC %-age at 50% Max: 5.70%
Trade active
I wasn't fully satisfied with what I received in credit for the short call aspect of this, so rolled it out to the Jan 19th 35 short call for a .66 credit (there is no December expiry currently), resulting in a cost basis of 30.76 relative to 31.16 spot.Trade active
Adding a short put here at the January 19th 18 delta 29 strike for a .65 credit. I can now look to (a) just manage the covered call (stock + short call); (b) just manage the short put; (c) roll the short strangle aspect (the short call and the short put) out as a unit to reduce cost basis further; or (d) take the whole she-bang off (stock, short call, short put). Cost basis: 30.11.Trade closed manually
Taking profit here on just the covered call aspect of the setup, closing it out for 31.85 on this rip. My cost basis was 30.76, so this results in a quickee dirtee 1.09 ($109) profit. This leaves me with just the January 19th 29 short put ... . A 52 handle move in /GC?! Money, take, run .... .Trade closed: target reached
And out of the short put aspect for .32 (50% max). $33 profit.
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