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Moniedcoveredcall

Opening (IRA): XBI February 21st 85 Covered Call... for an 83.01 debit. Comments: Adding at strikes/break evens 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: 83.01/share Max Profit: 1.99 ROC at Max: 2.40% 50% Max: 1.00 ROC at 50% Max: 1.20% Will generally look to take profit at 50% max, roll out short call on take profit point test.
AMEX:XBILong
by NaughtyPines
Opening (IRA): IBIT February 21st 50 Covered Call... for a 47.07 debit. Comments: High IVR/IV (88.4/68.6) + weakness post-FOMC. Going out to February, as there are only 30 DTE left in January, 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. Looking at this as a "starter" position, so 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: 47.07/share Max Profit: 2.93 ROC at Max: 6.22% 50% Max: 1.47 ROC at 50% Max: 3.11% Will generally look to take profit at 50% max, roll out short call on take profit point test.
NASDAQ:IBITLong
by NaughtyPines
2
Opening (IRA): SMH January 17th 235 Covered Call... for a 230.52 debit. Comments: Mostly in this to attempt to grab the annual divvy ... . Last year, it was 1.04/share, but it has been widely variant from year to year (e.g., 2.40 in 2022; 1.57 in 2021; 1.50 in 2020). Selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 230.52/Share Max Profit: 4.48 ROC at Max: 1.94% 50% Max: 2.24 ROC at 50% Max: .97% Will generally look to take profit at 50% max, but may take profit early if the dividend turns out to be non-chump change.
NASDAQ:SMHLong
by NaughtyPines
Opening (IRA): TLT February 21st 87 Covered Call... for a 85.97 debit. Comments: Going long at or near November lows, selling the -75 call against shares to emulate the delta metrics of a 25 delta short put, with the built-in defense of the short call. I'm also looking to snag the January and potentially the February dividends here. This is a bit longer-dated than I ordinarily like to go, but I'm not doing a ton here besides waiting for January setups to come in/be managed. The obvious variant is to sell the standard -30 delta against: TLT Feb 21st 94 covered call, 89.72 debit, 4.28 max. 4.77% ROC at max where the short call is paying >1% of the strike price in credit. Metrics: Buying Power Effect/Break Even: 85.97/share Max Profit (ex. dividends): 1.03 ROC at Max: 1.20% 50% Max: .52 ROC at 50% Max: .60% Will generally look to take profit at 50% max after at least the January dividend drops.
NASDAQ:TLTLong
by NaughtyPines
Opening (IRA): EWY January 17th 52 Covered Call... for a 51.50 debit. Comments: Primarily in this for the dividend, since the ROC %-age without it kind of blows chunks. The last four distributions were: .63, 1.68, .70, and 1.65. Would appreciate something in the neighborhood of 1.00 (please and thank you) ... . Metrics: Buying Power Effect/Break Even: 51.50/share Max Profit: .50 ROC at Max (Excluding Dividends): .97% I generally look to take profit on these at 50% max, but will wait for the dividend to drop to see what's what ... .
AMEX:EWYLong
by NaughtyPines
Opening (IRA): IBIT Jan 17th 50 Covered Call... for a 47.76 debit. Comments: High IV at 65.3%. Selling the -75 call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. This isn't the best entry (an understatement), but am looking at it as a starter position which I will add to, assuming I can get in at strikes/break evens better than what I currently have on. Previously, I was working BITO due to its monthly dividend, but it suffers from "rollover risk" and BITO IV is higher on the put side than on the call, making selling puts more productive in that instrument, kind of defeating the reason why you might want to be in that instrument -- the dividends, for which you have to be in stock. IBIT IV is higher on the call side than BITO, making covered calls more productive from a max profit standpoint. (The max of the Jan 17th 50 short put, 24 delta, is 1.77 here versus 2.24 for the monied covered call). Alas, the trade-off is ... no dividends. Metrics: Buying Power Effect/Break Even: 47.76/share Max Profit: 2.24 ROC at Max: 4.70% 50% Max: 1.12 ROC at 50% Max: 2.35% Will generally look to take profit at 50% max; roll the short call out on break of my take profit (which is (50.00 - 47.76)/2 + 47.76 or 48.88.
NASDAQ:IBITLong
by NaughtyPines
Opening (IRA): URTY January 17th 51 Covered Call.. for a 49.25 debit. Comments: With my usual leveraged go-to TQQQ in kind of the IV doldrums (IVR 18.1/IV 49.6), opting for a play in URTY with its 63.4% 30-Day IV instead. It's not as liquid and doesn't have nearly as robust an options chain as TQQQ, but I will make do. Metrics: Buying Power Effect/Break Even: 49.25/share Max Profit: 1.75 ROC at Max: 3.55% 50% Max: .88 ROC at 50% Max: 1.78% Will generally look to take profit at 50% max, roll out short call on test of take profit price, and add should I be able to get in at strikes/break evens better than what I currently have on.
AMEX:URTYLong
by NaughtyPines
Opening (IRA): TAN January 17th 33 Covered Call... for a 32.29 debit. Comments: ETF IV > 35% with 30-day currently at 39.7%. Adding to my position at strikes better than what I currently have on, 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. Dinking and doinking on "little stuff" running into year's end ... . Metrics: Buying Power Effect/Break Even: 32.29/share Max Profit: .71 ROC at Max: 2.20% 50% Max: .36 ROC at 50% Max: 1.10% Will generally look to take profit at 50% max.
AMEX:TANLong
by NaughtyPines
Opening (IRA): IBIT January 17th 48 Covered Call... for a 46.16 debit. Comments: Adding to my IBIT position at a strike/break even 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 to take advantage of call side IV skew and to have the built-in defense of the short call. Metrics: Buying Power Effect/Break Even: 46.16/share Max Profit: 1.84 ROC at Max: 3.99% 50% Max: .92 ROC at 50% Max: 1.99% Will generally look to take profit at 50% max/roll out short call on break even or take profit test.
NASDAQ:IBITLong
by NaughtyPines
Opening (IRA): USO Jan 17th 66 Covered Call... for a 64.89 break even. Comments: With 42 DTE in the January monthly, adding a "rung" to my USO position at strikes better than what I currently have on at the 68, 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. The ROC at max isn't stellar here with the usual metric I'm looking for being at least 2.0%. Metrics: Buying Power Effect/Break Even: 64.89/share Max Profit: 1.11 ROC at Max: 1.71% 50% Max: .56 ROC at 50% Max: .86% Will generally look to take profit at 50% max, roll out the short call on test of my take profit at 65.45.
AMEX:USOLong
by NaughtyPines
Opening (IRA): XBI January 17th 92 Covered Call... for a 90.47 debit. Comments: IVR/IV isn't fantastic here at 11.1/26.3%, but there is some IV skew to take advantage of on the call side -- 31.34% at the 92 call relative to 26.62% at the 92 put. Selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put to take advantage of the IV skew and the built-in defense of the short call. From a charting standpoint, the break even sets up nicely with the "RFK, Jr. low" in November. Metrics: Buying Power Effect/Break Even: 90.47 Max Profit: 1.53 ROC at Max: 1.69% 50% Max: .77 ROC at 50% Max: .85
AMEX:XBILong
by NaughtyPines
Opening (IRA): GDX Dec 20th 36 Covered Call... for a 35.29 debit. Comments: 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: 35.29/share Max Profit: .71 ROC at Max: 2.01% 50% Max: .36 ROC at 50% Max: 1.00% That 1.00% ROC at 50% max is kind of "marginal," but just trying to keep theta on and burning with little stuff that I can add to should I have the opportunity to get in in higher IV/weakness.
AMEX:GDXLong
by NaughtyPines
Opening (IRA): TQQQ December 20th 74 Covered Call... for a 71.29 debit. Comments: Selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. I'm looking at this as a starter position because I kind of have a feeling that I'm going to regret not putting this on in weakness/higher IV and will be adding at better strikes/break evens (only time will tell). Metrics: Buying Power Effect/Break Even: 71.29/share Max Profit: 2.71 ROC at Max: 3.80% 50% Max: 1.36 ROC at 50% Max: 1.90%
NASDAQ:TQQQLong
by NaughtyPines
Opening (IRA): TLT December 20th 88 Covered Call... for a 86.84 debit. Comments: High IVR at 74.8% plus weakness. Looking to grab both the November 1st and December 1st dividends here while I twiddle my thumbs waiting for the general election to pass, 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: 86.84 Max Profit (Excluding Dividends): 1.16 Max Profit (With Dividends): 1.80 ROC at Max Excluding Dividends: 1.34% ROC at Max (With Dividends): 2.07% Immediately post-fill, I put in a GTC order to take profit at .20 short of max or 87.80, but may take if off after the December dividend drops if something more "sexy" gives me that come hither look.
NASDAQ:TLTLong
by NaughtyPines
2
Opening (IRA): SPY Dec 20th 505 Covered Call... for a 501.71 debit. Comments: Re-upping at a higher strike than the one I just took off, looking to capture an additional little increment of upmove that I missed out on. If you wanted to be really anal about it, you could capture all of the up move over time (or capture the same increment more than once). For example, say I just took off the November 15th 500 covered call at or near max (e.g., 499.80). I can then shop for a monied covered call to capture the next increment of movement from 499.80 up, so I'd want to get into a setup for 499.80 or less. This would be the Jan 31st 506 covered call, currently trading for 499.72 and would ostensibly capture the move from 499.72 to 506 (assuming, naturally, a finish above 506). In the next iteration, I would look to capture the move from 506 up, and so on, all the way until my short call was at-the-money or out-of-the-money, depending on what I was trying to do with the setup.
AMEX:SPYLong
by NaughtyPines
Opening (IRA): TQQQ January 17th 65 Covered Call... for a 61.79 debit. Comments: Adding a "rung" at a break even better than what I currently have on, 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: 61.79/share Max Profit: 3.21 ($321) ROC at Max: 5.20% 50% Max: 1.62 ($162) ROC at 50% Max: 2.60% Will generally look to take profit at 50% max, roll out short call on take profit test (which is at 63.40).
NASDAQ:TQQQLong
by NaughtyPines