I originally entered an SPY Covered Call to experience chasing an ITM call higher in SPY.
Originally buying SPY at $521.59 and selling 500 call was for max protection against any near term drops.
The original Max gain of $2.85/share translated into 0.18% gain per week against the $497.15 cash capital required to take the trade.
Currently, with two dividends distributed, the trade is surprisingly still a 0.17% per week max gain trade, which translates to 8.86% per year.
SPY would fall almost 12% by 2/28/25 and I still make max gain of .17% per week.
And a 17% fall in SPY would be required to wipe out all gains for this trade.
Originally buying SPY at $521.59 and selling 500 call was for max protection against any near term drops.
The original Max gain of $2.85/share translated into 0.18% gain per week against the $497.15 cash capital required to take the trade.
Currently, with two dividends distributed, the trade is surprisingly still a 0.17% per week max gain trade, which translates to 8.86% per year.
SPY would fall almost 12% by 2/28/25 and I still make max gain of .17% per week.
And a 17% fall in SPY would be required to wipe out all gains for this trade.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.