Opening (IRA): GDXJ November 17th 35 Covered Call

... for a 31.42 debit.

Comments: Going covered call (neutral to bullish assumption) on this weakness with a 30 delta short call in the November 17th expiry.

Max Profit: 3.58 ($358)
Break Even: 31.42/share
ROC %-age at Max As a Function of Buying Power Effect: 11.39%
ROC %-age at 50% Max: 5.70%

Trade attivo:

I wasn't fully satisfied with what I received in credit for the short call aspect of this, so rolled it out to the Jan 19th 35 short call for a .66 credit (there is no December expiry currently), resulting in a cost basis of 30.76 relative to 31.16 spot.

Trade attivo:

Adding a short put here at the January 19th 18 delta 29 strike for a .65 credit. I can now look to (a) just manage the covered call (stock + short call); (b) just manage the short put; (c) roll the short strangle aspect (the short call and the short put) out as a unit to reduce cost basis further; or (d) take the whole she-bang off (stock, short call, short put). Cost basis: 30.11.

Trade chiuso manualmente:

Taking profit here on just the covered call aspect of the setup, closing it out for 31.85 on this rip. My cost basis was 30.76, so this results in a quickee dirtee 1.09 ($109) profit. This leaves me with just the January 19th 29 short put ... . A 52 handle move in /GC?! Money, take, run .... .

Trade chiuso: obiettivo raggiunto:

And out of the short put aspect for .32 (50% max). $33 profit.