Opening (IRA): EWZ July 19th 31 Monied Covered Call
... for a 30.31 debit.
Comments: Decent 30-day IV at 34.0%, but I'm primarily looking to position myself to grab the June dividend. IV is skewed to the put side in this underlying, so the general go-to would be short put, but to grab the dividend, you have to be in stock.
Because I want the extrinsic in the short call to exceed any dividend, I'm basically going at-the-money/slightly monied with the short call and will look to manage the position after the dividend drops. Unfortunately, the distribution has been wildly variant, so it's hard to tell how much extrinsic to keep in the short call to diminish the prospect of being called away early due to some dick exercising their long call early to grab the dividend.
Metrics (Sans Dividend):
Break Even/Buying Power Effect: 30.31
Max Profit: .69
ROC at Max: 2.28%
ROC at 50% Max: 1.14%
Comments: Decent 30-day IV at 34.0%, but I'm primarily looking to position myself to grab the June dividend. IV is skewed to the put side in this underlying, so the general go-to would be short put, but to grab the dividend, you have to be in stock.
Because I want the extrinsic in the short call to exceed any dividend, I'm basically going at-the-money/slightly monied with the short call and will look to manage the position after the dividend drops. Unfortunately, the distribution has been wildly variant, so it's hard to tell how much extrinsic to keep in the short call to diminish the prospect of being called away early due to some dick exercising their long call early to grab the dividend.
Metrics (Sans Dividend):
Break Even/Buying Power Effect: 30.31
Max Profit: .69
ROC at Max: 2.28%
ROC at 50% Max: 1.14%
Trade attivo
I don't really need to roll this, but price has broken under my short call and is a scant .41 away from my break even, so rolling it out to the Sept 20th 31 for a .57 credit. 29.74 break even.Trade attivo
Rolled from the Sept 20th 31 out to Dec for a .67 credit. 29.07 break even.Trade attivo
June 11 ex-divvy: 0.914355/share; 91.44/one lot.Nota
28.16 break even, including dividend.Trade attivo
Rolling the Dec 20th 31 short call down to the Dec 20th 29 short call for a .63 credit; 27.53 break even (inc. dividend); 28.44 (ex. dividend).Trade attivo
Selling a Dec 20th 24 short put for a .62 credit to convert my position into a covered strangle. 26.91 break even (inc. dividend); 27.82 (ex. dividend).Trade attivo
Closed the Dec 20th 24 short put at greater than 50% max for a .24/contract debit. Break even now 28.06 (ex. dividends).Trade attivo
Selling the Dec 20th 26 short put for a .74 credit, converting the setup into a Dec 20th 26/29 covered strangle with a break even of 27.32 (excluding dividends).Nota
Rolling out the short strangle aspect, from the 26/29 to the 26/26 in January for a .58 credit. 26.74 break even. Will see what's what once the dividend drops in December.Nota
12/17 ex-dividend. 1.092/share; $109.20 per one lot. 25.35 break even (including dividends); 26.74 (ex. dividends).Nota
Rolled the -26C down to the -24C for a .40 credit. 26.34 break even (ex. divvies); 24.95 (w/civvies). Will uninvert back to a straddle with the next 21 DTE roll.Nota
Closed out the Jan 17th -24C for a .27 debit. Will look to break up the position into laddered covered calls (e.g., 32 covered call, 26 covered call, 23 covered call).
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