Opening (IRA): SPY Oct 18th 515 Covered Call
Updated
... for a 511.00 debit.
Comments: After taking profit, re-upping here out in October, selling the 84 call against long stock to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call. Going lower delta here, since I've already realized gains for (basically) September.
There is a divvy to be had in Sept, with the last distribution being 1.76, so this will improve the unsexy ROC %-ages somewhat ... .
Metrics:
Buying Power Effect/Break Even: 511.00/share
Max Profit: 4.00 ($400); 5.76 ($576) with dividend, assuming a 1.76 distribution.
ROC at Max: .78% ROC at max; 1.13% ROC (with dividend)
50% Max: 2.00 ($200); 3.76 ($376) (with dividend)
ROC at 50% Max: .39% ROC. 74% ROC (with dividend)
Will generally look to take this off at >50% after the dividend drops or look to roll out in-profit short call to maintain net delta at +25 or less.
Comments: After taking profit, re-upping here out in October, selling the 84 call against long stock to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call. Going lower delta here, since I've already realized gains for (basically) September.
There is a divvy to be had in Sept, with the last distribution being 1.76, so this will improve the unsexy ROC %-ages somewhat ... .
Metrics:
Buying Power Effect/Break Even: 511.00/share
Max Profit: 4.00 ($400); 5.76 ($576) with dividend, assuming a 1.76 distribution.
ROC at Max: .78% ROC at max; 1.13% ROC (with dividend)
50% Max: 2.00 ($200); 3.76 ($376) (with dividend)
ROC at 50% Max: .39% ROC. 74% ROC (with dividend)
Will generally look to take this off at >50% after the dividend drops or look to roll out in-profit short call to maintain net delta at +25 or less.
Trade active
I don't need to roll out here, but am still somewhat gun shy from the last sell-off we had. Rolling the Oct 18th 515 short call to the Nov 15th 500 for a 17.75 credit (a credit that exceeds the "strike destruction"). 493.25 break even; 6.75 max; 1.37% ROC at max (excluding dividends); delta 18.51.Note
9/20 dividend: 1.75 ($175). Break even (with divvies): 491.50; 8.50 max; 1.73% ROC at max.Trade closed manually
Closed for a 496.43 credit; 3.18 ($318) profit; 4.93 ($493) (with dividends). Will re-up at a slightly higher strike here shortly .... .
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