Opening (IRA): IWM February 17th 193 Covered Call
... for a 183.77 debit.
Comments: Since I still have broad market short delta hedges on in IWM, QQQ, and SPY, replacing a lot of the long delta I took off yesterday in one fell swoop here with covered calls. Here, I'm selling the short call paying around 1% of the strike price in credit. The 193 is paying 2.10 ($210) at the moment, and I'll look to roll it at 50% max.
This isn't the best place to be doing this, since IWM is well off its lows and risk premium has collapsed here, but am just looking to keep my portfolio "net delta happy" for the moment.
Comments: Since I still have broad market short delta hedges on in IWM, QQQ, and SPY, replacing a lot of the long delta I took off yesterday in one fell swoop here with covered calls. Here, I'm selling the short call paying around 1% of the strike price in credit. The 193 is paying 2.10 ($210) at the moment, and I'll look to roll it at 50% max.
This isn't the best place to be doing this, since IWM is well off its lows and risk premium has collapsed here, but am just looking to keep my portfolio "net delta happy" for the moment.
Trade active:
With the 193 at >50%, rolled it down and out a week to the strike paying around 1% of the strike price in credit, which was the Feb 24th 190, for which I received a 1.01 credit. Cost basis of 182.76.
Trade closed manually:
Closed here for a 188.20 credit. 188.20 - 182.76 = 5.44 ($544) profit.