Opening (IRA): TMF Feb 28th 35 Covered Call
... for a 33.98 debit.
Comments: High IVR/IV at 40.7/44.2, which is no surprise, since this is a bullish 3 x leveraged 20 year paper exchange-traded fund. It does have a dividend that pays out quarterly in March, June, September, and December (annualized yield of 4.71%).
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. Using the February 28th expiry to keep things in that 45 DTE wheelhouse and will look to add at intervals, assuming I can get in at strikes/break evens better than what I currently have on.
Metrics:
Buying Power Effect/Break Even: 33.98/share
Max Profit: 1.02
ROC at Max: 3.00%
50% Max: .51
ROC at 50% Max: 1.50%
Will generally look to take profit at 50% max, roll in-profit short call out to reduce my break even.
Comments: High IVR/IV at 40.7/44.2, which is no surprise, since this is a bullish 3 x leveraged 20 year paper exchange-traded fund. It does have a dividend that pays out quarterly in March, June, September, and December (annualized yield of 4.71%).
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. Using the February 28th expiry to keep things in that 45 DTE wheelhouse and will look to add at intervals, assuming I can get in at strikes/break evens better than what I currently have on.
Metrics:
Buying Power Effect/Break Even: 33.98/share
Max Profit: 1.02
ROC at Max: 3.00%
50% Max: .51
ROC at 50% Max: 1.50%
Will generally look to take profit at 50% max, roll in-profit short call out to reduce my break even.
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