Opening (IRA): TLT March 21st 81 Covered Call

10 janv.

... for a 79.98 debit.

Comments: Adding a "rung" in March at a break even better than what I currently have on, 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: 79.98/share
Max Profit (Excluding Dividends): 1.02
ROC at Max (Excluding Dividends): 1.28%

Generally looking to roll out-of-the-money short call down and out for a credit that is greater than the amount of strike destruction at expiry to generate a quasi-free cash flow setup consisting of (a) short call premium; and (b) dividends. This differs somewhat than what I would ordinarily do, which is generally money/take/run at 50% max.

17 janv.

Trade fermée: cible de profit atteinte

Taking this off at 50% max here for an 80.49 credit; .51 ($51) profit. Still have the March 84's, March 87's, and April 82's on.