Opened (IRA): MSTR October 18th 119 Monied Covered Call
Updated
... for a 110.75 debit.
Comments: I don't do a ton of single name in my IRA, but with earnings in the rear view and 30-day IV at 81.7%, taking a "poos and giggles" trade here, selling the -75 delta call against shares to emulate the delta metrics of a +25 delta short put, with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 110.75
Max Profit: 8.25
ROC at Max: 7.45%
50% Max: 4.13
ROC at 50% Max: 3.72%
Comments: I don't do a ton of single name in my IRA, but with earnings in the rear view and 30-day IV at 81.7%, taking a "poos and giggles" trade here, selling the -75 delta call against shares to emulate the delta metrics of a +25 delta short put, with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 110.75
Max Profit: 8.25
ROC at Max: 7.45%
50% Max: 4.13
ROC at 50% Max: 3.72%
Trade active
Rolled the in-profit Oct 119 to the Nov 18th 113 (-70 delta) for an 8.99 credit (a credit that exceeds the "strike destruction" of 6 strikes by 2.99). Break even now 101.76; max profit 11.24; ROC at Max: 11.05%.
Still looking to take this off at 50% max, which would be one-half 113 (the short call strike) minus the break even (101.76) or 107.38.
Comment
Just a note to myself here ... . Earnings on 11/6, so probably want to be out of this by then (please and thank you).Trade closed manually
Closing here for a 104.60 credit; 2.84 ($284) profit.Disclaimer
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