To The Moon

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! 💸

@MillionaireTiger 

@TigerStars 

@TigerTradingNotes 

@CaptainTiger @Daily_Discussion thanks for the support