Opening (IRA): SOXL March 21st 29 Covered Call

... for a 26.85 debit.

Comments: High IV; starter position. 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: 26.85
Max Profit: 2.15
ROC at Max: 8.01%
50% Max: 1.08
ROC at 50% Max: 4.00%

Will generally look to take profit at 50% max, add at intervals if I can get in at better strikes/better break evens than what I currently have on, and/or roll out the short call if take profit is not hit.

Note

Rolling the 29 short call down in this strength to the 27 for a 1.01 credit; 25.84 break even. My general preference is to have these work out in some fashion without rolling them out for duration. Naturally, I'm giving up some upside, but the max is still 1.16, 4.48% ROC at max; 50% max, .58; 2.24% at 50% max.

Note

At approximately 21 DTE, rolling the in-profit 27 short call down and out to the April 17th 26 for a 1.36 credit; 24.48 break even.

Note

Late Post: Rolled the April 17th 26 down to the August 24 for a 2.18 credit. 22.30 break even.

Note

Short call 50% max roll down and out from the August 24 to the Jan 16th 23 for a 1.63 credit; 20.67 break even.

Note

Rolling down to the 21 for a .23 credit; 20.44 break even.

Trade closed manually

Throwing the towel in ... . Closed for an 8.28 credit; 12.16 loser.

NaughtyPines

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NaughtyPines