Opening (IRA): TLT March 21st 81 Covered Call
... for a 79.98 debit.
Comments: Adding a "rung" in March at a break even better than what I currently have on, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 79.98/share
Max Profit (Excluding Dividends): 1.02
ROC at Max (Excluding Dividends): 1.28%
Generally looking to roll out-of-the-money short call down and out for a credit that is greater than the amount of strike destruction at expiry to generate a quasi-free cash flow setup consisting of (a) short call premium; and (b) dividends. This differs somewhat than what I would ordinarily do, which is generally money/take/run at 50% max.
Comments: Adding a "rung" in March at a break even better than what I currently have on, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 79.98/share
Max Profit (Excluding Dividends): 1.02
ROC at Max (Excluding Dividends): 1.28%
Generally looking to roll out-of-the-money short call down and out for a credit that is greater than the amount of strike destruction at expiry to generate a quasi-free cash flow setup consisting of (a) short call premium; and (b) dividends. This differs somewhat than what I would ordinarily do, which is generally money/take/run at 50% max.
Trade closed: target reached
Taking this off at 50% max here for an 80.49 credit; .51 ($51) profit. Still have the March 84's, March 87's, and April 82's 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.