Opening (IRA): USO April 17th 68 Covered Call

Feb 25

... for a 66.58 debit.

Comments: With /CL dropping sub-70/bbl., putting on a starter position in USO, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call.

Metrics:

Buying Power Effect/Break Even: 66.58/share
Max Profit: 1.42
ROC at Max: 2.13%
50% Max: .71
ROC at 50% Max: 1.07%

Will generally look to take profit at 50% max, add at intervals if I can get in at strikes/break evens better than what I currently have on, and/or roll out short call if my take profit is not hit.

Mar 21

Note

Since I only have one "rung" on and know I won't pay attention to USO or /CL unless I have a position in it, rolling the in profit 68 short call out to May "as is" (i.e., to the 68 strike) for an .88 credit; 65.70 break even; 2.30 at max, 3.50% ROC at max; 1.15 at 50% max. 1.75% ROC at 50% max.

Mar 24

Trade closed manually

On second thought, money, taking, running ... . Closing for a 66.57 credit; .87 ($87) profit.