Opening (IRA): TMF Feb 28th 35 Covered Call

15 Oca

... for a 33.98 debit.

Comments: High IVR/IV at 40.7/44.2, which is no surprise, since this is a bullish 3 x leveraged 20 year paper exchange-traded fund. It does have a dividend that pays out quarterly in March, June, September, and December (annualized yield of 4.71%).

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. Using the February 28th expiry to keep things in that 45 DTE wheelhouse and will look to add at intervals, assuming I can get in at strikes/break evens better than what I currently have on.

Metrics:

Buying Power Effect/Break Even: 33.98/share
Max Profit: 1.02
ROC at Max: 3.00%
50% Max: .51
ROC at 50% Max: 1.50%

Will generally look to take profit at 50% max, roll in-profit short call out to reduce my break even.

27 Oca

İşlem elle kapatılmış

Closed for a 34.42 credit; .44 ($44) profit. Will look to re-enter should TLT return to its 52-week lows.