Another boring covered call I did yesterday...Apple

[Cabin111]

So here's an example a vehicle to write straddles against. GOOGL closed at 2435. The Jan2023 3000C is 147.xx marketable. Say an 860 credit on the synthetic straddle. So you're long 100 GOOGL and you write 294 in premium ($29,400) against those 100 shares at a vol-line of 26%.

Your stress with GOOGL at 3000 in a year is 460 on the straddle. IOW you'll 400 ($40K) per lot at neutrality ($3000/share). Yeah, you'll make $565/share without the vol, but no way we touch $3,000 GOOGL inside a year.

Say you want less exposure to that ticker. Buy 50 shares and sell one of the 3,000 calls for 147. Same position but half the size.

I haven't calculated my DCA on GOOGL overwrites in a couple of years, but I write every six month tenors and typically roll in month five. My DCA (reinvested prem) in GOOGL from overwriting in 2019 was under $600/share. That assumes I reinvested all premium in the trade, which I do not do. I typically add another ticker.

Would these fill automatically (Saturday noon), even if your eldest (POE) didn't touch them or made instructions?? We will have a bank's trust department handle our affairs when we are unable to. Just don't know if they would be on top of the situation...Hence the covered calls.

Off subject a bit...My mother in law died about 7 years ago. My wife was given the right to the beneficiary money. She rejected it. The money moved to our daughters...Generational transfer skip.

 

[destriero]

Would these fill automatically (Saturday noon), even if your eldest (POE) didn't touch them or made instructions?? We will have a bank's trust department handle our affairs when we are unable to. Just don't know if they would be on top of the situation...Hence the covered calls.

Off subject a bit...My mother in law died about 7 years ago. My wife was given the right to the beneficiary money. She rejected it. The money moved to our daughters...Generational transfer skip.

Obv they would be executed during the day sesh on Monday, but instructions would be given to the BD in question on a not held basis. The trust dept would give the broker discretion when able. In my situation I have only one kid of ag and my sister is on deck if my son is unable.

Your wife's a saint. Most would not do as she did.

 

[Cabin111]

Obv they would be executed during the day sesh on Monday, but instructions would be given to the BD in question on a not held basis. The trust dept would give the broker discretion when able. In my situation I have only one kid of ag and my sister is on deck if my son is unable.

Your wife's a saint. Most would not do as she did.

Just chewing what you said...Not arguing. Schwab and Fidelity are not a fiduciary toward me...The bank's trust is. It seems Schwab, Fidelity, IB may not act in my/our best interest.

My wife would NOT have given the money unless she felt our daughters were mature enough to handle it. One married a boring IT guy...The other an engineer.

 

[Cabin111]

Just an update on this trade...Boring but so far profitable.

I bought back my option for $4.24 ($424.+ fees). I then did another sell to open (covered call) for the March 23 $185. I got $7.90 ($790.) for it. Good paper profits, good quality stock, fair dividend, and more option money (plus $4.40-$4.24)...I'll see what happens.

I'm willing to take it though a recession...