Opening (IRA): BITO April 19th 26 Short Put
... for a 1.23 credit.
Comments: Adding to my covered call position (See Post Below) on weakness, converting the covered call into a covered strangle (i.e., short put + stock + short call). I went with April, since May appeared to be shit illiquid at where I'd want to pitch my tent.
I'm fine with being assigned additional stock here at the 26 strike, since my cost basis in my shares is currently 27.54, with the cost basis in any shares assigned via the 26 at 24.77, although my preference would be just to take profit on the covered call aspect at 50% max and the short put at 50% max and move on.
Naturally, if I also manage to grab the April dividend, that would be additionally bueno.
As a standalone trade:
Break Even/Buying Power Effect/Cost Basis in Any Assigned Shares: 24.77
Max Profit: 1.23 ($123)
ROC at Max: 4.97%
ROC at 50% Max: 2.48%
Comments: Adding to my covered call position (See Post Below) on weakness, converting the covered call into a covered strangle (i.e., short put + stock + short call). I went with April, since May appeared to be shit illiquid at where I'd want to pitch my tent.
I'm fine with being assigned additional stock here at the 26 strike, since my cost basis in my shares is currently 27.54, with the cost basis in any shares assigned via the 26 at 24.77, although my preference would be just to take profit on the covered call aspect at 50% max and the short put at 50% max and move on.
Naturally, if I also manage to grab the April dividend, that would be additionally bueno.
As a standalone trade:
Break Even/Buying Power Effect/Cost Basis in Any Assigned Shares: 24.77
Max Profit: 1.23 ($123)
ROC at Max: 4.97%
ROC at 50% Max: 2.48%
Trade closed: target reached:
Hit 50% max today, closing for a .61 debit. .62 ($62) profit. 2.50% ROC. Still have the May 17th 31 covered call and May 17th 24 short put on ... .
