Opening (IRA): XLU October 18th 71 Monied Covered Call
Updated
... for a 70.09 debit.
Comments: For lack of something better to do, looking to grab the Sept divvy if I can. Selling the -73 delta call against long stock to emulate a ~25 delta short put with the built-in defense of the short call. This isn't the greatest entry given price action, but am willing to add should the market afford me an opportunity to do so at strikes better than the 71 ... .
The last distribution was .55/share; 555/ONE lot.
Metrics:
Buying Power Effect/Break Even: 70.09
Max Profit: .91 ($91) (excluding dividends); 1.46 (including divvies, assuming a .55/share distribution)
ROC at Max: 1.30%
50% Max: .46; 1.01 (including divvies)
ROC at 50% Max: .65% (1.44% including divvies)
Comments: For lack of something better to do, looking to grab the Sept divvy if I can. Selling the -73 delta call against long stock to emulate a ~25 delta short put with the built-in defense of the short call. This isn't the greatest entry given price action, but am willing to add should the market afford me an opportunity to do so at strikes better than the 71 ... .
The last distribution was .55/share; 555/ONE lot.
Metrics:
Buying Power Effect/Break Even: 70.09
Max Profit: .91 ($91) (excluding dividends); 1.46 (including divvies, assuming a .55/share distribution)
ROC at Max: 1.30%
50% Max: .46; 1.01 (including divvies)
ROC at 50% Max: .65% (1.44% including divvies)
Trade closed manually
Probably better bang for my buying power elsewhere ... . Closing here for a small profit: in for 70.09; out for 70.48; .39 ($39) profit.
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