Opening (IRA): TLT Jan 17th 2025 100 Covered Calls
Comments:
Doing something long-dated here in 20 year+ paper to get in at a cost basis that is coincident with a 10 year yield at 4.10%.
Metrics:
Buying Power Effect/Cost Basis: 91.40/contract
Max Profit: 8.60 ($860)/contract
ROC at Max as a Function of Buying Power Effect: 9.41% (Excluding Dividends)
ROC at 50% Max as a Function of Buying Power Effect: 4.70% (Excluding Dividends)
Delta/Theta: 49/1.00
Will look to roll out the short calls at intervals if they're in profit to reduce cost basis further. They're currently marking at 7.00/7.25 with the only available expiry to roll out to in Jan of 2026 (so I'll be forced to sit on my hands for "a bit").
Doing something long-dated here in 20 year+ paper to get in at a cost basis that is coincident with a 10 year yield at 4.10%.
Metrics:
Buying Power Effect/Cost Basis: 91.40/contract
Max Profit: 8.60 ($860)/contract
ROC at Max as a Function of Buying Power Effect: 9.41% (Excluding Dividends)
ROC at 50% Max as a Function of Buying Power Effect: 4.70% (Excluding Dividends)
Delta/Theta: 49/1.00
Will look to roll out the short calls at intervals if they're in profit to reduce cost basis further. They're currently marking at 7.00/7.25 with the only available expiry to roll out to in Jan of 2026 (so I'll be forced to sit on my hands for "a bit").
Dagangan aktif
The 2/1 divvy will be .310122/share. Resulting cost basis: 91.40 - .31 = 91.09.Dagangan aktif
The 3/1 divvy will be 0.295234/share. Resulting cost basis 91.09 - .30 = 90.79.Dagangan aktif
The 4/1 divvy will be 0.312425/share. Resulting cost basis 90.79 - .31 = 90.48/share.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.