Opening (IRA): TQQQ December 29th 34.5 Covered Call
... for a 33.04 debit.
Comments: Selling the monied -75 delta call against a one lot to potentially take advantage of early random call away/*assignment. 33.04 break even with a 1.46 ($146) max profit; 4.42% ROC/32.9% annualized as a function of buying power effect at max.
"Random" call away occurs when someone holding the 34.5 long call choses to exercise it before expiration, but I'll look to close at or near max (e.g., 34.45) to avoid the call away/assignment fee if I get the opportunity to do so.
On the flip side of the coin, I'll look to roll out the short call to reduce cost basis and my break even further if it chooses to crap its pants.
Comments: Selling the monied -75 delta call against a one lot to potentially take advantage of early random call away/*assignment. 33.04 break even with a 1.46 ($146) max profit; 4.42% ROC/32.9% annualized as a function of buying power effect at max.
"Random" call away occurs when someone holding the 34.5 long call choses to exercise it before expiration, but I'll look to close at or near max (e.g., 34.45) to avoid the call away/assignment fee if I get the opportunity to do so.
On the flip side of the coin, I'll look to roll out the short call to reduce cost basis and my break even further if it chooses to crap its pants.
Trade closed: target reached:
Couldn't help myself ... . Took profit at 50% max. In for a 33.04 debit; out for a 33.80 credit; .76 ($76) profit.