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Moniedcoveredcall

TRADE IDEA (IRA): ROKU FEBRUARY 21ST 105 MONIED CCMetrics: Max Profit: 3.08 Max Loss: 101.92 (Assuming Stock Goes to Zero) Break Even/Cost Basis: 101.92 Delta/Theta: 15.75/10.76 ROC%-age At Max: 3.02%/32.4% annualized Notes: Although I generally don't play a ton of single name in my IRA, looking to deploy idle capital here. High rank/implied (56/78), good ROC%-age, and high probability of profit (84%). The natural alternative in a cash secured environment would be to sell a similarly delta'd put: the 15 delta 105 is paying 2.81 with a 102.19 cost basis if assigned. Earnings in 25 days versus this 34 day setup, but my intention would be to "play through."
NASDAQ:ROKULong
by NaughtyPines
2
TRADE IDEA: TQQQ MARCH 20TH 80 MONIED CCMetrics: Max Profit: $239 Max Loss: $7761 (assuming underlying goes to $0) Buying Power Effect (Cash Secured): $7761 Cost Basis In Stock/Break Even: $77.61 Delta/Theta: 15.11/4.43 Notes: High implied volatility underlying (56%). I don't play leveraged products as a general matter, but will dip at the well with a conservative setup like this that has a high probability of profit (the platform says 87%), particularly if I'm not doing a ton of other things and have the buying power to deploy. The ROC isn't great in cash secured (239/7761 = 3.1%), but will take it if I can get it over a 60 day period of time.
NASDAQ:TQQQLong
by NaughtyPines
TRADE IDEA: APA JAN 17TH 20 MONIED CC or JAN 17TH 20 SHORT PUTWith broad market and exchange-traded funds being temporarily unproductive from a premium-selling standpoint, I've been scouring the earth for high rank/high implied underlyings. APA (100/74) is one of them with earnings in the rear view. Pictured here is a monied covered call with the short call at the 20 strike in the January cycle. Markets are showing wide here (16.05/17.70/19.34), most of which is due to after hours pricing of the stock, which ended the regular session at 23.22, with the short call at 4.17 at the mid, implying a possible fill of 19.05 with .95 max for the monied covered call (5% ROC); the same strike short put pays .91 at the mid with a cost basis of 19.09 if assigned, so it's six of one, half dozen of the other in a cash secured environment, but greater buying power efficiency on margin by going short put over the covered call. Go less monied with the call -- at the 22.5 strike, and you're looking at potential 20.65 fill and 1.85 max (9% ROC); the 22.5 short put pays 1.76 with a cost basis of 20.74 if assigned.
A
by NaughtyPines