Opening (IRA): ARKK July 19th 41 Monied Covered Call
... for a 39.64 debit.
Comments: After taking off my 44 monied for a small profit, re-upping with a setup in the same expiry, but with a better break even. Selling the -75 call against a one lot of stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense.
Metrics:
Buying Power Effect/Break Even: 39.64
Max Profit: 1.36
ROC at Max: 3.43%
ROC at 50% Max: 1.72%
Will generally look to take profit at 50% max.
Comments: After taking off my 44 monied for a small profit, re-upping with a setup in the same expiry, but with a better break even. Selling the -75 call against a one lot of stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense.
Metrics:
Buying Power Effect/Break Even: 39.64
Max Profit: 1.36
ROC at Max: 3.43%
ROC at 50% Max: 1.72%
Will generally look to take profit at 50% max.
Trade active:
Rolled the short call "as is" out to Sept (here is no August) for a 1.27 credit. 38.37 break even. Max Profit now 2.63; ROC at max 6.85%.