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.
Trade closed manually
Closed for a 34.42 credit; .44 ($44) profit. Will look to re-enter should TLT return to its 52-week lows.
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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.