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Coveredcall

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.
AMEX:USOLong
by NaughtyPines
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%
AMEX:EWZLong
by NaughtyPines
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.
AMEX:BITOLong
by NaughtyPines
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%
AMEX:BITOLong
by NaughtyPines
1
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").
TVC:TNXLong
by NaughtyPines
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.
AMEX:XLULong
by NaughtyPines
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)
AMEX:XLELong
by NaughtyPines
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.
NYSE:NEMLong
by ArturoL
7
Opening: XBI Jan '25 77 Covered CallComments: 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, resulting in a cost basis of my original short put strike at 76 minus the 7.05 I received for the short call or 68.95 relative to today's closing price of 67.07. The Jan '25 77 short call finished the day at around 43 delta, and -- as with all my covered calls, I'll look to roll out the short call at intervals, with an eye toward keeping the short call at or above the 30 delta and/or leaving it alone if price pops back above my break even. Unfortunately, the position becomes somewhat "dead money" for a bit since the current next available expiries to roll to are limited to June '25, Dec '25, and Jan '26 (although I can certainly roll down intraexpiry if push comes to shove).
AMEX:XBILong
by NaughtyPines
TLT Core Position (IRA)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. The short call premium, along with TLT's monthly dividend, will result in positive cash flow. There are a couple of different approaches I could utilize here to manage the shares I'm assigned, one of which is to sell a call against each individual lot I'm assigned, laddering out short calls in time as I'm assigned shares. Since I've got quite a few contracts subject to assignment, this would result in sort of a covered call spaghetti-works. Another simpler approach would be to see what the average cost basis of all the lots I'm assigned is, and then proceed to sell calls at or above that average cost basis in a single expiry. For example, the average cost basis of the two rungs shown here is (89 + 93)/2 or 91/share. With that cost basis in mind, I would proceed to sell two calls at or above the 91 strike at a reasonably delta'd strike in an expiry that's paying. Given the distance price has pulled away from my likely average cost basis, the calls are likely to be somewhat long dated. Given the fact that my highest short put strike is at 94, I'm more likely to sell calls at 94 initially, wait to be assigned everything that I'm going to get assigned, look at the average cost basis at that point and then adjust the short calls accordingly. Because of its simplicity, this is the approach I'll be going with, looking to stay in the shares and manage the entire position on a fairly long-term basis. As usual, we'll see how it goes ... .
NASDAQ:TLTLong
by NaughtyPines