Love this area. IF NVDA DROPS, I'll buy more shares! But, I wanted to take advantage of the volatility of FED coming up. GETTING $2.00 is amazing. I'll set a limit buy to purchase this back for $.78
I bought shares low. Now, I'll be happy to sell them high. 1%+ on covered call prem at/near resistance. :-)
... for a 27.55 debit. Comments: Not the weakness I was looking for, but setting myself up to grab the early June dividend. Generally, I'll look to roll out the short call at 50% max ... .
... for a 30.31 debit. Comments: Decent 30-day IV at 34.0%, but I'm primarily looking to position myself to grab the June dividend. IV is skewed to the put side in this underlying, so the general go-to would be short put, but to grab the dividend, you have to be in stock. Because I want the extrinsic in the short call to exceed any dividend, I'm basically...
... for a 45.77 debit. Comments: With VIX at 29.30 relative to the /VX front month contract trading at 22.50, a basic bet that IV contracts at some point between now and Sept mopex. Metrics: Buying Power Effect/Break Even: 45.77 Max Profit: 4.23 ($423) ROC at Max: 9.24% 50% Max: 2.12 ($212) ROC at 50% Max: 4.62%
... for a 1.09 credit. Comments: Looked at all my options here for the rolling of the short call aspect of my covered calls -- rolling down, rolling down and out, rolling out as is, rolling to shorter duration and down ... . Going with rolling down in the same expiry for a 1.09 credit. Resulting cost basis: 89.11. It still remains a bet that the Fed will cut...
... for a 26.12 debit. Comments: Re-upping after closing out my longer-dated covered call (which I had rolled all the way out to December). Selling the -30 delta call against long stock here. As before, will look to roll out the short call for duration at 50% max, collect the monthly dividend along the way ... . I'll also look at selling short put, assuming I...
... for a 27.54 debit. Comments: High IVR/IV at 97.9/81.9% and a monthly dividend to take advantage of. However, the monthly dividend has varied widely -- with the last two distributions paying .36 (February 8th) and .73 (March 8th) with an annual dividend of 8.72 (.73 average monthly) (31.7% annualized as a function of current price). I'm primarily looking to...
... for a 1.25 credit. Comments: Rolling out the short call aspect of my XBI covered call at ~50% max to the June expiry for a 1.25 credit. Cost basis now 85.94 (See Post Below) minus 1.25 or 84.69.
... for a .28 credit. Comments: Rolling out the short call aspect of my covered calls (See Post Below) a month for a small credit. Cost basis/break even in the setup is now 90.20. The small consolation prize is that this keeps my break even right around with the underlying is currently trading.
Comments: Doing something long-dated here in 20 year+ paper to get in at a cost basis that is coincident with a 10 year yield at 4.10%. Metrics: Buying Power Effect/Cost Basis: 91.40/contract Max Profit: 8.60 ($860)/contract ROC at Max as a Function of Buying Power Effect: 9.41% (Excluding Dividends) ROC at 50% Max as a Function of Buying Power Effect: 4.70%...
... for a 60.31 debit. Comments: For lack of something better to do, looking to grab the March dividend here, which should be in the vicinity of .60/share. The top 5, options liquid dividend-yielding ETF's are: EWZ (10.90%) (paid twice a year in June and December); EFA (5.27%) (paid twice a year in June and December); XLE (3.78%) (paid in March, June,...
... for a 85.43 debit. Comments: Looking to attempt to grab the March dividend, which has been averaging around .80 over the past four distributions. Metrics: Buying Power Effect/Break Even/Cost Basis in Shares: 85.43 Max Profit: 2.57 ($257) ROC at Max (ex. dividend): 3.01% ROC at Max (w/dividend): 3.94% (assuming an .80 distribution) ROC at 50% Max (ex....
Price is landing on an important support area. This a gold and copper mining company, the stock pays 4.5% dividend yield. I see gold going up in medium term, next year I believe gold will be trading around 2200 and will pull up this stock. I own this stock for the dividends and I believe is going to hit the 45 next year. I'm collecting the dividends while I'm...
Buy low, sell high. STILL in this ETF. I bought to close my last covered call for a small gain. This one only has 25 days until expiration and 2 days of theta. Plus if I get called away here, that would be jamming. AND paid .25!
Comments: This started out as an October 20th 76 short put (See Post Below) and then proceeded to crater quite massively, resulting in early, random assignment of shares. In an attempt to get my cost basis immediately within earshot of where the underlying is currently trading, I went extremely long-dated and sold the Jan '25 77 for 7.05 against my one lot,...
In the absence of some kind of face-ripping rally, I'm going to be assigned shares in TLT here shortly, starting with what began as an October 20th 93 short put and an October 20th 89 short put. Here, I'm using short puts as an acquisitional tool, attempting to acquire shares in multi-year weakness, after which I'll proceed to cover the shares with short calls. ...
... 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%