Opening (IRA): KRE August 19th 44 Monied Covered Call
Updated
... for a 42.98 debit.
Comments: Hitting a little KRE (IVR/IV 42/28) on weakness here, looking primarily to grab the June dividend (March distribution: .38; 3.19% annualized). Selling the -75 call against a one lot to emulate the delta metrics of a 25 delta short put with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 42.98
Max Profit: 1.02 ($102) ex. dividend
ROC at Max: 2.37%
50% Max: .51 ($51) ex. dividend
ROC at 50% Max: 1.19%
Will primarily look to take profit at 50% max, roll out the short call on test ... .
Comments: Hitting a little KRE (IVR/IV 42/28) on weakness here, looking primarily to grab the June dividend (March distribution: .38; 3.19% annualized). Selling the -75 call against a one lot to emulate the delta metrics of a 25 delta short put with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 42.98
Max Profit: 1.02 ($102) ex. dividend
ROC at Max: 2.37%
50% Max: .51 ($51) ex. dividend
ROC at 50% Max: 1.19%
Will primarily look to take profit at 50% max, roll out the short call on test ... .
Note
6/24 divvy: .39/share; 39/contract. 42.59 break even.Trade closed manually
Closed for a 43.38 credit. .79 net profit (including divvies); 1.85% ROC as a function of break even. Still have the Sept 42 monied covered calls on ... .
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.