Opened (IRA): GDX March 15th 27 Monied Covered Call
... for a 26.21 debit.
Comments: 42.2 IV/32.8% 30-day IV. Before I went to take a nap, added a "rung" on weakness here to my position, buying a one lot and selling a -75 call against. I already have a February monied on (See Post Below), so went out to March for this setup.
The call IV at the 27 strike: 37.32%. The put side at the same strike: 29.49% with their respective maxes being .79 for the 27 monied; .49 for the 27 short put.
As previously noted, this only makes sense in a cash secured environment where you don't get much BP relief by hanging out in the options. This cost 26.21 to put on in the IRA; the 27 short put would cost 26.51. Compare on margin: 26.21 buying power effect for this setup, 3.18 BPE for the 27 short put. Put another way: you generally don't do this setup on margin because it isn't BP efficient.
Metrics:
Buying Power Effect/Cost Basis/Break Even: 26.21
Max Profit (The Short Call Strike Price - Cost Basis): .79 ($79)
ROC %-age At Max: 3.01%/15.70% Annualized
ROC %-age at 50% Max: 1.51%/7.85% Annualized
Comments: 42.2 IV/32.8% 30-day IV. Before I went to take a nap, added a "rung" on weakness here to my position, buying a one lot and selling a -75 call against. I already have a February monied on (See Post Below), so went out to March for this setup.
The call IV at the 27 strike: 37.32%. The put side at the same strike: 29.49% with their respective maxes being .79 for the 27 monied; .49 for the 27 short put.
As previously noted, this only makes sense in a cash secured environment where you don't get much BP relief by hanging out in the options. This cost 26.21 to put on in the IRA; the 27 short put would cost 26.51. Compare on margin: 26.21 buying power effect for this setup, 3.18 BPE for the 27 short put. Put another way: you generally don't do this setup on margin because it isn't BP efficient.
Metrics:
Buying Power Effect/Cost Basis/Break Even: 26.21
Max Profit (The Short Call Strike Price - Cost Basis): .79 ($79)
ROC %-age At Max: 3.01%/15.70% Annualized
ROC %-age at 50% Max: 1.51%/7.85% Annualized
Trade active:
Rolled the March 16th 27 Short Call at 50% max to the June 21st 27 for a 1.03 credit. 25.18 Cost Basis.
Trade closed: target reached:
Out today for 50% max, closing for a 26.09 credit. .91 ($91) profit; 3.61% ROC. Still have the September 20th 29 covered call and the August 16th 22 covered calls on ... .
