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%
Operación activa:
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.
Operación activa:
Rolled from the Sept 20th 31 out to Dec for a .67 credit. 29.07 break even.
Operación activa:
June 11 ex-divvy: 0.914355/share; 91.44/one lot.
Comentarios:
28.16 break even, including dividend.
Operación activa:
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).