Opening (IRA): TAN August 30th 38 Covered Call
Updated
... for a 37.00 debit.
Comments: Back into TAN (30-Day IV: 47.6%), selling the -76 call against stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Going with the August 30th, 46 DTE contract.
Metrics:
Buying Power Effect/Break Even: 37.00/share
Max Profit: 1.00 ($100)
ROC at Max: 2.63%
50% Max: .50 ($50)
ROC at 50% max: 1.32%
Will generally look to take profit at 50% max/roll the short call for duration on test.
Comments: Back into TAN (30-Day IV: 47.6%), selling the -76 call against stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Going with the August 30th, 46 DTE contract.
Metrics:
Buying Power Effect/Break Even: 37.00/share
Max Profit: 1.00 ($100)
ROC at Max: 2.63%
50% Max: .50 ($50)
ROC at 50% max: 1.32%
Will generally look to take profit at 50% max/roll the short call for duration on test.
Trade active
The short call is right at 50% max with 21 days to go, so rolling it out to the Sept 20th 37 short call for a 1.20 credit. Break even now 35.80; 1.20 max; ROC at max 3.35%.Trade closed: target reached
Hit 50% max today, closing for a 36.40 credit. .60 ($60) profit/contract; 1.68% ROC.
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.