Opened (IRA): EWW Oct 18th 50 Monied Covered Call
... for a 49.02 debit.
Comments: 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. The IV isn't fantastic here at 29.8%, but the ROC is kind of what I'm minimally looking for out of this sort of play, so putting on a small position here, particularly since the underlying isn't all that far off its 52-week low.
Metrics:
Buying Power Effect/Break Even: 49.02
Max Profit: .98
ROC at Max: 2.0%
50% Max: .49
ROC at 50% max: 1.0%
Generally, will look to take profit at 50% max, roll short call for duration and credit on side test.
Comments: 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. The IV isn't fantastic here at 29.8%, but the ROC is kind of what I'm minimally looking for out of this sort of play, so putting on a small position here, particularly since the underlying isn't all that far off its 52-week low.
Metrics:
Buying Power Effect/Break Even: 49.02
Max Profit: .98
ROC at Max: 2.0%
50% Max: .49
ROC at 50% max: 1.0%
Generally, will look to take profit at 50% max, roll short call for duration and credit on side test.
Trade fermée: cible de profit atteinte
Hit 50% max today, closing for a 49.51 credit; .49 ($49) profit.
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.