Opening (IRA): COIN March 21st 220 Covered Call

14 févr.

... for a 215.96 debit.

Comments: High IV + weakness. Selling the -85 delta call against shares to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call. Going lower net delta due to the shorter duration (35 DTE).

Metrics:

Buying Power Effect/Break Even: 215.96/share
Max Profit: 4.04
ROC at Max: 1.87%
50% Max: 2.02
ROC at 50% Max: .94

Will generally look to take profit at 50% max, roll out short call if my take profit is not hit.

avant-hier

Note

Rolling the in-profit 220 short call out to the April 17th 210 in this vol expansion for a 12.25 credit (i.e., a credit that exceeds the amount of strike destruction). 203.71 break even with a 6.29 max.