Opened (IRA): BITO June 28th 31 Covered Call... 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 ... .
Coveredcall
TSLL covered call expiring THIS FRIDAY I wouldn't mind selling my TSLL shares here, because that would be profitable.
Buy low, sell high?
Plus this is like, 3.5% for 3 trading days?
And my strong assumption is, if I DID sell at $24, this Friday, I Would be able to re-buy later??
;-)
Opening (IRA): USO December 20th 68 Covered Call... for a 66.48 debit.
Comments: Back into the slippery stuff with /CL trading at 70.48. Selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call.
My basic approach here is to dink and donk on the underlying when /CL is at $70/bbl. or below.
Metrics:
Break Even/Buying Power Effect: 66.48
Max Profit: 1.52
ROC at Max: 2.29%
50% Max: .76
ROC at 50% Max: 1.15%
Will generally look to take profit at 50% max; roll out short call on take profit test. I'll also look to add "rungs" should I be able to do so at strikes/break evens better than what I currently have on.
Opening (IRA): IWM Dec 20th 195 Covered Call... for a 193.79 debit.
Comments: Re-upping with a monied covered call in the December 20th expiry at a strike that is slightly higher than the one I just took off to "capture" the next little increment of up move that I missed out on. I'm not expecting much out of this (it has a 1.21 max), but didn't want to set up my tent in January yet either.
Opened (IRA): USO Dec 20th 63 Covered Call... for a 61.26 debit.
Comments: (Late Post). High IV (67.7% as of Tuesday close) + weakness.
Added a "rung" to my existing position at a strike 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: 61.26
Max Profit: 1.74
ROC at Max: 2.84%
50% Max: .87
ROC at 50% Max: 1.42%
Will generally look to take profit at 50% max, roll out in-profit short call on test of take profit. Here, the 50% max take profit would be .87 + 61.26 or 62.13.
Opening (IRA): MU Nov 15th 95 Covered Call... for a 92.53 debit.
Comments: Post-earnings, IV remains somewhat decent here at 45.2%. Selling the -80 delta call against long stock to emulate the metrics of a 20 delta short put, but with built-in short call defense.
Metrics:
Buying Power Effect/Break Even: 92.53/share
Max Profit: 2.47
ROC at Max: 2.67%
50% Max: 1.24
ROC at 50% Max: 1.33%
Will generally look to take profit at 50% max, roll out the short call on test.
Rolling (IRA): TLT Feb 21st 100 Calls to the 95 Calls... 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 rates at some point, just with lower max profit potential.
Opening (IRA): TAN Nov 15th 37 Covered Call... for a 35.89 debit.
Comments: Relatively decent IV here at 42.8%. Selling the -75 delta call against stock 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: 35.89
Max Profit: 1.11
ROC at Max: 3.09%
50% Max: .56
ROC at 50% Max: 1.55%
Will generally look to take profit at 50% max; roll out short call on test.
TSLA covered call over earnings *again* I've sold $250 and $255 covered calls recently. Obviously huge gap down because of SELL THE NEWS style event... ;-)
I really am not concerned. This is a buy the dip opportunity. I am happy to capture the premium from the call sale which is 1% and IF I sell at $255 in two weeks... amazing...
:-)
Opening (IRA): EWZ July 19th 31 Monied Covered Call... 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 going at-the-money/slightly monied with the short call and will look to manage the position after the dividend drops. Unfortunately, the distribution has been wildly variant, so it's hard to tell how much extrinsic to keep in the short call to diminish the prospect of being called away early due to some dick exercising their long call early to grab the dividend.
Metrics (Sans Dividend):
Break Even/Buying Power Effect: 30.31
Max Profit: .69
ROC at Max: 2.28%
ROC at 50% Max: 1.14%
Covered call on TSLA over ROBO TAXII am expecting robo taxi to be a "sell the news" event. We had a "buy the rumor move" on TSLA from $200 to $260
I had a $250 covered call expiring LAST Friday. I sold that for $5 and bought it back for $1. NICE WIN. Still have the shares.
So, figured If I was OK selling at $250 2 trading days ago, I should be fine selling at $255+4 = $259 effective
THIS FRIDAY
Covered call on NVDAI bought more shares here! :-)
Selling the $132 for 1% for 10/25 expiration! =-)
I WOULD LOVE to sell at $132 and pay taxes on more money.
NVDA covered callLove 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
NVDA Covered callI bought shares low. Now, I'll be happy to sell them high. 1%+ on covered call prem at/near resistance.
:-)
Opening (IRA): SVXY Sept 20th 50 Covered Call... 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%
Opening (IRA): BITO July 19th 30 Covered Call... 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 can get in on weakness and with a resulting break even better than what I currently have on.
Opened (IRA): BITO April 19th 31 Covered Call... 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 grab the April monthly here; anything additional above my break even will be gravy ... .
In any event, the metrics:
BPE/Break Even/Cost Basis in Shares: 27.54
Max Profit (ex. dividend): 3.46 ($346)
ROC at Max: 12.56%
Rolling (IRA): XBI May 17th 88 Short Call to June 21st 88... 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.
Rolled (IRA): TLT Jan 17th 2025 Short Calls to Feb 21st... 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.
Opening (IRA): TLT Jan 17th 2025 100 Covered CallsComments:
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% (Excluding Dividends)
Delta/Theta: 49/1.00
Will look to roll out the short calls at intervals if they're in profit to reduce cost basis further. They're currently marking at 7.00/7.25 with the only available expiry to roll out to in Jan of 2026 (so I'll be forced to sit on my hands for "a bit").
Opening (IRA): XLU April 19th 62 Covered Call... 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, September, December); XLU (3.16%) (paid in March, June, September, December); EEM (3.10%) (paid in June and December); EWW (3.08%) (paid in June and December).
Will look to roll out the short call on test of my break even, but will otherwise leave it mostly alone until the dividend drops into my account, which should occur sometime in the third week of March.
Opened (IRA): XLE April 19th 88 Covered Call... 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. dividend): 1.50%
ROC at 50% Max (w/dividend): 2.44% (assuming an .80 distribution)
This market has no mercyPrice 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 waiting and also selling covered call at every correction. Good cash income if you're a little patient. I don't have a SL because a I use this stock for passive income.
