{"id":14627,"date":"2024-11-11T16:07:33","date_gmt":"2024-11-11T21:07:33","guid":{"rendered":"https:\/\/www.mainstbeatswallst.com\/?page_id=14627"},"modified":"2024-11-11T16:12:05","modified_gmt":"2024-11-11T21:12:05","slug":"a-covered-call-with-trump-media-technology-group-djt","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=14627","title":{"rendered":"A Covered Call with Trump Media & Technology Group (DJT)"},"content":{"rendered":"

\"\"<\/a>This trade I look at as a bit of a gamble. I know nothing about Trump Media & Technology Group (DJT) or Truth Social. So let me tell you why I made this trade.<\/p>\n

I looked at the charts and nothing made me too nervous. The stock spiked at its inception in Oct , 2021 and went up to $175. After the hype the stock came down and was trading as low as $13 in 2023. The stock spiked again in Jan, 2024 and went up to the $80 area. Today I bought 200 shares at $33.20. As you can see the stock was all over the charts. I decided to take a shot with a great premium with an In-the-Money<\/a><\/span> Covered Call. I bought the stock at $33.20 and sold two DJT 11\/15\/24 $30 Calls for a premium of $2.75.<\/p>\n

Buy 200 Shares DJT @ $33.20<\/strong><\/h4>\n

Sell to Open 2 11\/15\/24 $33.00 C @ $2.75 (+$550)<\/strong><\/h4>\n

This premium is 8.2% at the buy-in price of $33.20. Let’s see what can happen with this Risk Factor 3<\/strong> position.<\/p>\n

Stock closes above $33<\/strong> – I would get assigned. I’ll keep the $550 premium and I would lose 20\u00a2 on the stock sale. My profit would be $510. My Return on Investment (ROI) would be 7.6% for the 5 day trade.<\/p>\n

Stock closes below $33<\/strong> – I would keep the stock and keep the $550 premium. My ROI would be 8.2% for the 5 day trade. Then I will sell another 2 contract Call option on my shares.<\/p>\n

Out of these two possible outcomes I really don’t care which one happens. I just don’t want the stock to take a big dip. With the market still running as a result of the election I don’t think this will happen…..But you never know!<\/p>\n

 <\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

This trade I look at as a bit of a gamble. I know nothing about Trump Media & Technology Group (DJT) or Truth Social. So let me tell you why I made this trade. I looked at the charts and nothing made me too nervous. The stock spiked at its inception in Oct , 2021 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-14627","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3NV","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14627"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14627\/revisions"}],"predecessor-version":[{"id":14630,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14627\/revisions\/14630"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}