As I change over to use of SELLING PUTS instead of BUYING STOCK directly (on Buy Days), my reporting method as it has been will not work.
So, I’ll paste in a transaction record.
The goal is for the CSP to expire worthless on June 19th (they both happen to have that expiry date). OR, for the stock to rise enough that I can buy them back for .05 or so.
Note that I do NOT return as much cash as I would with a regular buy and sell (if the PT is reached), but overall, the 24 days to expiry, in theory, allows for TWO sales of PUTS in the 50 day or so average sale period of a TtP-S Purchase. For instance AEP would have returned $96.37 at PT for a TtP-S trade. It returns $90 in 24 days (or sooner) if it works as a CSP acquisition. OR, I buy the stock for $55 instead of $55.06 AND keep the $90 for an effective purchase price of $49.10 if I’m assigned on expiration day (or sooner). If I’m assigned, it becomes a standard TtP-S trade, and if appropriate, I’ll sell calls until it’s gone….
My “work in progress” CSP Hunter” sheet which uses real-time data feeds from my broker. Illustrated is the setup for the AEP CSP sell this morning.
|TtP-S||As of: 05/26/15 08:26 TtP-S Alert Display Format 2 Version 2.1|
|Moderator Message (if any): Today’s Buys & Sells. Pete A||SPY||DIA|
|% Chg from Prev Close||-0.28%||-0.41%|
|NOT a Buy Day|
|(Based on low of the day)|
|Ticker||Buy Price||Buy Date||Profit Target||Sell Price||Sell Date||Profit Percent||Annualized RoI %||Current Position|