How I made 7% in 40 days $700 for covered call of spyg
Maximizing Gains: A Breakdown of My SPYG Covered Call Strategy 💰📈
I’m currently running a covered call strategy with SPDR Portfolio S&P 500 Growth ETF (SPYG), and I’m excited to share the potential returns from this setup over the next 40 days. Let’s break down the numbers and see how much I stand to gain in both absolute terms and percentage.
My SPYG Position and Covered Call Details
1. SPYG Holdings:
• Shares Owned: 100.146
• Current Market Price: $90.69
• Total Investment: $9,082.24
• Unrealized Gain on Shares: $365.46
2. Covered Call Sold:
• Option Type: SPYG Call
• Strike Price: $89
• Expiration Date: March 21, 2025
• Premium Collected: $3.50 per share (Total: $350)
• Current Option Value: $3.07 per share
• Unrealized Loss on Option: -$42.76
Maximum Profit Calculation 🧮
1. Premium Income (Guaranteed):
I collected $350 by selling the covered call, which is mine to keep, regardless of the stock’s price movement.
2. Capital Gains (If Assigned):
Since my strike price is $89, if SPYG closes above that at expiration, my shares will be called away. However, I bought SPYG at an average price lower than $89. Based on the unrealized gain of $365.46, I will lock in this capital gain if assigned.$SPDR Portfolio S&P 500 Growth ETF(SPYG)$
$SPDR Portfolio S&P 500 Growth ETF(SPYG)$
Total Maximum Profit:
• Premium Collected: $350
• Capital Gains (if assigned): $365.46
• Total Profit: $715.46
Percentage Return Calculation 📊
Total Investment: $9,082.24
Total Profit: $715.46
Percentage Return = (Total Profit / Total Investment) x 100
= ($715.46 / $9,082.24) x 100
= 7.88%
Conclusion: A Solid 7.88% Return in 40 Days 🚀
By leveraging this covered call strategy, I’m poised to earn a maximum profit of $715.46, translating to a 7.88% return in just 40 days. This approach blends steady premium income with potential capital gains, offering a balanced way to enhance returns on my SPYG holdings while managing risk effectively.
If the stock isn’t called away, I can rinse and repeat by selling more calls, compounding the gains over time. Either way, it’s a win-win! 💸
@CaptainTiger @Daily_Discussion thanks for the support
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Great article, would you like to share it?