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Moniedcoveredcall

Opening (IRA): TAN August 30th 38 Covered Call... for a 37.00 debit. Comments: Back into TAN (30-Day IV: 47.6%), selling the -76 call against stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Going with the August 30th, 46 DTE contract. Metrics: Buying Power Effect/Break Even: 37.00/share Max Profit: 1.00 ($100) ROC at Max: 2.63% 50% Max: .50 ($50) ROC at 50% max: 1.32% Will generally look to take profit at 50% max/roll the short call for duration on test.
AMEX:TANLong
by NaughtyPines
Opened (IRA): TLT September 20th 89 Monied Covered Calls... for an 87.83/contract debit. Comments: Parking some cap in TLT while I go about "summer things." Selling the -75 call against shares to emulate the delta metrics of a 25 delta long put while having built-in short call defense. Metrics: Break Even/Buying Power Effect: 87.83/contract Max Profit: 1.07/contract (ex. divvies); 1.38/contract (with divvies) ROC at Max: 1.22% (ex. divvies)/1.57% (with divvies) 50% Max: .53/contract (ex. divvies) ROC at Max: .61% (ex. divvies); .96% (with divvies) These metrics assume that I'm only able to grab one divvy (i.e., July). It's possible that I'm able to grab July and August or July, August, and September, which will naturally increase the ROC %-age, but will generally money/take/run at 50% max after at least the July divvy drops. And ... you never know ... It's also possible that TLT might not cooperate and move back toward my short call strike and voila, I've got a poo pile on my hands.
NASDAQ:TLTLong
by NaughtyPines
Opening (IRA): SPY August 16th 498 Monied Covered Call... for a 493.42 debit. Comments: As with my QQQ monied, re-upping in SPY after having taken profit on my August 16th 493. Here, selling the -84 delta call against, which will mean a lower max and a lower ROC %-age. Just looking to potentially milk a little more out of the August cycle (60 DTE), before moving into Sept. Metrics: Buying Power Effect/Break Even: 493.42 Max Profit: 4.58 ROC at Max: .93% 50% Max: 2.29 ROC at 50% Max: .46%
AMEX:SPYLong
by NaughtyPines
Opening (IRA): QQQ August 16th 425 Monied Covered Call... for a 420.39 debit. Comments: After having taken profit on my August 16th 420 CC, re-upping, but at a slightly higher strike ... . The ROC %-age metrics aren't generally what I like to see out of these, but have already realized some gains in the August cycle, so am fine if the ROC %-age isn't stellar here. I'm also selling the -85 delta call against, as opposed to my usual -75. Metrics: Break Even/BPE: 420.39 Max Profit: 4.61 ROC at Max: 1.10% 50% Max: 2.30 ROC at 50% Max: .55%
NASDAQ:QQQLong
by NaughtyPines
Opened (IRA): IWM August 16th 191 Monied Covered Call... for a 187.46 debit. Comments: (Late Post). Sold the -75 call against a one lot to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 187.46. Max Profit: 3.54 ($354) ROC at Max: 1.89% ROC at 50% Max: .94% Will generally look to take profit at 50% max on the entire setup (stock + short call) as a unit, but won't hesitate to roll out the short call if in profit to keep my break even at or near where the underlying is currently trading.
AMEX:IWMLong
by NaughtyPines
Opened (IRA): XLE August 16th 85 Monied Covered Call... for an 83.77 debit. Comments: Some of the only red on my ETF board ... . Here, selling the -75 delta call against a one lot to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. There is also a divvy to be had some time in June, with the last distribution being .73. Metrics: Buying Power Effect/Break Even: 83.77 Max Profit: 1.23 ($123) ROC at Max: 1.47% 50% Max: .62 ($62) ROC at 50% Max: .74%
AMEX:XLELong
by NaughtyPines
Opening (IRA): TQQQ August 16th 71 Covered Call... for a 68.76 debit. Comments: Buying stock and selling a -75 delta call against to emulate the delta metrics of a 25 delta short put with the built-in defense of the short call. As usual, this only makes sense in a cash secured environment where you don't get much BP relief going with the short put over the covered call; on margin -- stick with the short put. Metrics: Buying Power Effect/Break Even: 68.76/share Max Profit: 2.24/contract ROC at Max: 3.26% 50% Max: 1.12/contract ROC at 50% Max: 1.63% Will generally look to take profit at 50%, roll out the short call on side or break even test. (It's entirely possible that I will regret this trade later).
NASDAQ:TQQQLong
by NaughtyPines
1
Opening (IRA): KRE Sept 20th 42 Covered Call... for a 40.73 debit. Comments: Adding to my KRE (IVR/IV 50.4/28.6) position with a setup out in the September monthly that has a break even better than what I currently have on. Selling the -75 delta call against a one lot to emulate the delta metrics of a 25 delta short put with the built-in defense of the short call. Additionally, attempting to grab a little more June divvy if I can, with ex-dividend not having been declared yet. Metrics: Buying Power Effect/Break Even: 40.73 Max Profit: 1.27 ($127) ROC at Max: 3.12% 50% Max: .64 ROC at 50% Max: 1.56%
AMEX:KRELong
by NaughtyPines
Opening (IRA): KRE August 19th 44 Monied Covered Call... for a 42.98 debit. Comments: Hitting a little KRE (IVR/IV 42/28) on weakness here, looking primarily to grab the June dividend (March distribution: .38; 3.19% annualized). Selling the -75 call against a one lot to emulate the delta metrics of a 25 delta short put with the built-in defense of the short call. Metrics: Buying Power Effect/Break Even: 42.98 Max Profit: 1.02 ($102) ex. dividend ROC at Max: 2.37% 50% Max: .51 ($51) ex. dividend ROC at 50% Max: 1.19% Will primarily look to take profit at 50% max, roll out the short call on test ... .
AMEX:KRELong
by NaughtyPines
Opening (IRA): SLV July 26th 25 Monied Covered Call... for a 24.26 debit. Comments: High IV here at 36.4%. Using the July 26th weekly here for the setup, since this is one of those options highly liquid underlyings with both liquid monthlies and weeklies, and I like to attempt to keep things in that 45 DTE wheelhouse if I can. Because of the size of this underlying, I'm looking to ladder out if we get continued weakness, but am fine with taking my Happy Meal profits and move on if that happens. Here, I like the metrics of the monied covered call relative to a similarly delta'd short put, so sold a -75 delta call against a one lot to emulate a 25 delta short put's metrics, but have the built-in defense of the short call. Metrics: Buying Power Effect/Break Even: 24.26 Max Profit: .74 ($74) ROC at Max: 3.05% 50% Max: .37 ($37) ROC at 50% Max: 1.53%
AMEX:SLVLong
by NaughtyPines
Opened (IRA): SPY August 16th 493 Monied Covered Call... for a 485.25 debit. Comments: (Late Post). Sold the -75 call against a one lot to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 485.25 Max Profit: 7.75 ($775) ROC at Max: 1.60% ROC at 50% Max: .80% Will generally look to take profit at 50% max on the entire setup (stock + short call) as a unit, but won't hesitate to roll out the short call if in profit to keep my break even at or near where the underlying is currently trading or to maintain delta metrics. This is kind of my new favorite setup in the IRA versus short put, particularly in underlyings where the put side is skewed closer to at-the-money than call and where there is heightened IV on the call side. As previously noted, this only makes sense in a cash secured environment, since you get little buying power relief going with short put over this setup. On margin, the general answer pretty much always is "go with the short put" since that is more buying power efficient than being in stock or in covered call.
AMEX:SPYLong
by NaughtyPines
Opened (IRA): QQQ August 16th 420 Monied Covered Call... for a 411.80 debit. Comments: (Late Post). Sold the -75 call against a one lot to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 411.80 Max Profit: 8.20 ($820) ROC at Max: 1.99% ROC at 50% Max: 1.00% Will generally look to take profit at 50% max on the entire setup (stock + short call) as a unit, but won't hesitate to roll out the short call if in profit to keep my break even at or near where the underlying is currently trading.
NASDAQ:QQQLong
by NaughtyPines
Opening (IRA): USO July 19th 67 Monied Covered Call... for a 65.60 debit. Comments: Selling the -75 call against shares to emulate the delta metrics of a 25 delta short put, but with built-in short call defense and to take advantage of slightly elevated IV on the call side relative to the put. Would like 30-day IV to be higher here, but can't have everything (it's at 31.2%). Metrics: Buying Power Effect/Break Even: 65.60 Max Profit: 1.40 ($140) ROC at Max: 2.13%/16.90% annualized ROC at 50% Max: 1.07%/8.45% annualized Will generally look to take profit at 50% max ... .
AMEX:USOLong
by NaughtyPines
Opening (IRA): TQQQ July 19th 58 Monied Covered Call... for a 55.95 debit. Comments: Going monied here, selling the -75 call against stock to emulate a 25 delta short put metrics while having built-in intraexpiry defense via the short call. More patient people will probably wait for weakness ... . I'll generally look to roll out the short call on test or at 50% max/take profit on the entire setup as a unit at 50% of max. Metrics: Buying Power Effect/Break Even: 55.95 Max Profit: 2.05 ($205) ROC at Max: 3.66% ROC at 50% Max: 1.83%
NASDAQ:TQQQLong
by NaughtyPines
Opening (IRA): ARKK July 19th 41 Monied Covered Call... for a 39.64 debit. Comments: After taking off my 44 monied for a small profit, re-upping with a setup in the same expiry, but with a better break even. Selling the -75 call against a one lot of 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: 39.64 Max Profit: 1.36 ROC at Max: 3.43% ROC at 50% Max: 1.72% Will generally look to take profit at 50% max.
AMEX:ARKKLong
by NaughtyPines
Opening (IRA): XBI July 19th 83 Monied Covered Call... for an 80.91 debit. Comments: After taking off my August 88 monied for a small profit, re-upping in shorter duration, but with a better break even than what I had with the August 88. Selling the -75 delta call against a one lot of stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. My general goal here is to not hang out in these positions for lengthy periods of time, but to take profit, re-evaluate the market for where the juice is at, and re-up if the underlying remains "sexy" from a premium-selling standpoint. XBI's 30-day IV isn't stellar at 30.9%, but it's toward the top of my IV screener, with miners and the silver ETF hogging three spots: TQQQ (51.8%); GDXJ (44.0%); GDX (38.7%); SLV (32.3%); SMH (31.6%); EWZ (31.1%); XBI (30.9%). Metrics: Buying Power Effect/Break Even: 80.91 Max Profit: 2.09 ROC at Max: 2.58% ROC at 50% Max: 1.29% Will generally look to take profit at 50% max and/or roll out the short call aspect if it reaches 50% max or there is a test of my downside break even.
AMEX:XBILong
by NaughtyPines