When I post the trades, I will not post them when I enter them. I am not giving financial advise. I will update the trades here until I get called out.
Acronyms:
BTO = Buy To Open
STO = Sell To Open
BTC = Buy To Close
STC = Sell To Close
The trade
Date: Feb. 15
BTO 100 shares BAC for $47.98
STO 1 call contract March 25, 51 Strike for 53c
STO 1 put contract March 25, 41 Strike for 29c
Total credit 82cents or $82 on a $4,798 investment for 38 days. This is a 1.71% return for 38 days.
Now it is time to let the trade work. The order to buy back the short call for 2cents and the short put for 5 cents are in the system.
Update Mar-07
I am now ITM on my short put. I decided, it is ok for me to get assigned at 41$ for 100 shares at expiration. This means I will not roll out and down for a credit.
So the cost base is going to be $4,100+$4,798 = $8,898/200 = $44,49 a share. To make a bit of a profit on the entire position I will have to sell at least a $44.50 call or better to sell a $45.00call. Now those calls must be min 30 days out to not get into wash sales. I add usually choose 31+ days for that.
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