IWM POOR MAN'S COVERED CALL IDEA

29 дек. 2015 г.

I previously described this setup in the post below. I would ordinarily do it in SPY, but I have SPY iron condor setups on and IWM is a good instrument to play with this strategy, since it is the index ETF with the smallest value among SPY, IWM, QQQ, and DIA.

Here's the setup:

Aug 19th 97 long call
Feb 19th 115 short call
Entire Package: 16.83 debit (1683/contract)

Notes: (1) Look to take the setup off in its entirety if profit reaches 50% of the credit received for the short call. In this case, the credit received was 2.77, so look to take it off when profit reaches $138 or so. (2) You can roll the short call out for additional credit should that be profitable, keeping the long call in place, but I generally prefer not letting the long call get to less than 150 days out or so to ensure that the vast majority of its value remains intrinsic.

1 янв. 2016 г.

Заметка

My last trade of the year! ... . Was to roll down the 115 short call to the 114 (same expiry) for a .51 credit.

5 янв. 2016 г.

Заметка

Rolled down the 114 short call to the 111 for an additional 1.41 credit on this down move.

7 янв. 2016 г.

Заметка

Rolled down the 111 to the 109 (same expiry) for an additional 1.04 credit.

8 янв. 2016 г.

Заметка

Rolled the 109 down to the 107 for an additional .98 credit (same expiry) and then rolled down to the Feb 26th 106 for an additional .73.

8 янв. 2016 г.

Заметка

Rolled down the Feb 26th 106 to the 105 for an additional .52.

12 янв. 2016 г.

Заметка

Rolled down the Feb 26th 105 to the Feb 26th 104 for a .52 credit.

12 янв. 2016 г.

Заметка

Rolled the Feb 26th 104 down and out to the March 18th 103 for a 1.19 credit.

13 янв. 2016 г.

Заметка

Rolled the March 18th 103 down to the March 18th 101 for a .52 credit.

21 янв. 2016 г.

Заметка

Covered the March 18th 101 for a 1.85 debi in order to sell a strike farther away from current price, but closer in time. After doing that, filled a Feb 26th 105 short call for a .46 credit.

26 янв. 2016 г.

Заметка

Rolling the Feb 26th 105 short call out to the March 18th 105 to capture additional credit from this up move; filled for a .66 credit.

2 февр. 2016 г.

Заметка

Rolling the March 18th 105 down to the March 18th 103 to capture an additional .94 credit.

9 февр. 2016 г.

Заметка

Rolling the March 18th 103 down to the 100 for an .86 credit.

18 февр. 2016 г.

Заметка

Rolling out and up to the April 11th 101 for a .33 credit, which will give the short call a little bit more room to breathe. If I get a substantial down move, I'll close that out and sell something farther away, but closer in time.