Opening (IRA): USO Oct 18th 69 Monied Covered Call
Updated
... for a 67.44 debit.
Comments: This isn't as low as I wanted to get in, but the short call is below where I would've entered would have to have been more patient and waited for 70. In any event, 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: 67.44/share
Max Profit: 1.56 ($156)
ROC at Max: 2.31%
ROC at 50% Max: .78 ($78)
ROC at 50% Max: 1.16%
Take profit at 50% max; roll in-profit short call to maintain net delta <30.
Comments: This isn't as low as I wanted to get in, but the short call is below where I would've entered would have to have been more patient and waited for 70. In any event, 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: 67.44/share
Max Profit: 1.56 ($156)
ROC at Max: 2.31%
ROC at 50% Max: .78 ($78)
ROC at 50% Max: 1.16%
Take profit at 50% max; roll in-profit short call to maintain net delta <30.
Trade active
This is apparently an "Oh, were to have just waited a couple days" market ... . Rolling the Oct 18th 69 short call out to Dec for a 2.00 credit; 65.44 break even; 3.56 max; 5.44% ROC at max; net delta 40.25.Trade closed: target reached
Hit 50% max today, closing for a 67.22 credit. 1.78 ($178) profit. Out of my USO position.
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