Opening (IRA): TLT December 20th 88 Covered Call

21 oct.

... 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.

1 nov.

Note

11/1 Dividend: .31 per share; break even now 86.53; 1.47 max.

11 nov.

Transaction en cours

With the short call in profit by .84 ($84), rolling it out to the Jan 17th 88 for a .52 credit. 86.32 break even (without dividends); 86.01 (with). Just trying to generate a little "free cash flow" running into year's end.

3 déc.

Note

12/2 Dividend: 0.325021/share. Break even now 86.20; 1.80 max.

4 déc.

Trade fermée: cible de profit atteinte

Closed for a 87.41 credit; 1.21 ($121) profit (including dividends); 1.40% ROC as a function of break even.