... for a .25 credit. Comments: With only 14 days to go in the short call aspect of my long call diagonal/Poor Man's Covered Call, rolling it out on this little bounce here to reduce cost basis in the setup further. My cost basis in the diagonal is now 5.72 with the resulting diagonal spread being the June 25 long call/January 21st 32 short call.
DISH announces earnings on Tuesday before market open and is a state of high volatility (>50%). While you can naturally go with the plain Jane volatility contraction play around earnings (short strangle), there might be an opportunity here to catch it at significant lows while simultaneously taking advantage of risk premium present here which will lower your cost...
... for a 3.02/contract debit. This is a "properly" set up split month Poor Man's Covered Call where the credit received for the short exceeds the extrinsic in the long and has a neutral to bullish assumption. It's neutral because price can stay right here, and I can reduce cost basis further by rolling the short call out in time and/or it's bullish, because it...
Fading the down move here with a put diagonal ... . Metrics: Max Loss on Setup: $350/contract Max Profit on Setup: $100/contract Break Even: 20.50 Notes: The natural alternatives would be to sell the 30 delta short put or go synthetic covered call via a 70 delta shortie ... . I'm looking for a 3.50 fill, but the setup may need some adjustment at NY open, since...
This is a neutral to bullish assumption "skip month" call diagonal that very nearly approaches the metrics of a "proper" Poor Man's Covered Call where the credit received for the short call is equal to or greater than the extrinsic in the long option, the break even on setup is at or below where the stock is trading, and where the price paid is less than 75% of...
This is a Poor Man's Covered Call, with the 90 delta July long call standing in as your stock, and the April 20th 26 short call functioning as it would in a covered call situation. Your max loss is the difference between what you paid for the long (currently 6.28 at the mid) minus what you received for the short call (currently .69 at the mid). Consequently, you...
... for a 3.85/contract debit. Here, I'm going with the deep in the money 90 delta long, the out of the money 30 delta short. The long functions as a stand in for the stock with the short providing cost basis reduction. I'll look to roll the short call at significant loss of value to reduce cost basis and take profit at anywhere north of 10% of what I put the...
* -- Poor Man's Covered Call. One of the few sectors that hasn't benefited from the post- November election run-up is XLE, so I'm looking to get into a bullish play here where price of the underlying is comparatively low. Here, I'm basically looking to emulate a full-on covered call using a deep in the money call in September to stand in for stock, 100 shares of...
One thing I'm certain about, and that's that I don't want to buy SNAP stock here with its having whipsawed between 29+ and 19 in the short time since its IPO. But I might want to acquire it later once it settles down -- as with all things, preferably at a lower price than 22.74. A Poor Man's Covered Call gives me the flexibility to play SNAP, give me the...
Bad advice in part; good advice in part; hiding the ball in part. finance.yahoo.com The good part: cover your stock/equity positions with short calls. This will smooth out your P&L somewhat and protect you -- albeit not completely -- from down side risk while reducing cost basis in your shares. Unfortunately, they don't want to "share their secrets" right up...
I'm not going to take this trade at the moment, because I'm trying to wind up current trades to move over to TastyWorks (formerly Dough). However, once I finish up that process, this is one of the trades I'm looking at, although certainly putting this on here isn't necessarily the best in terms of timing, since price has come bounced quite dramatically off that...
There is more than one way to skin a cat. But some ways are more buying power efficient than others ... . Here, I'm looking at a covered call in X. The implied volatility is >50%, so I can get a bit of premium on the call side to reduce my cost basis in any stock I buy here. For example, if I buy shares at 20.38, and sell the Sept 30th 20.5 call against (for...