SYM. SHS. PRICE VALUE EXPIR. PRICE DAYS PREM. INC. AT STRIKE YIELD OR (DEPR.) OF QQQ
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
COVERED CALL WRITING
The following represents a number of actual covered call writing alternatives on 1,000 shares of the Nasdaq-100 Trust ETF (symbol QQQQ)...both "in-the-money" as well as "out-of-the-money." This table was taken from the Excel® template you will use to find the best covered call writing opportunities for you. The book discusses the use of the template in detail. This table examines "strike prices" from $33 to $37 and three different "expiration dates." Note the annualized yield that would be earned from call "premium" income in the third column from the right and the potential annualized yield from premium income combined with possible capital appreciation in the second column from the right. (Click on the "Terms" tab above for definitions of the words in quotes.)
SEC. EXPIR. # OF SEC. STRIKE INTRIN. TIME MARGIN # OF PREM. RTN. OF PREM. ANNUAL
SYM. DATE CONTS. PRICE PRICE PREM. VALUE VALUE REQ. DAYS INCOME CAPITAL INC. RETURN
PUT OPTION WRITING
The following represents a number of actual uncovered put writing alternatives on 10 put contracts (equivalent to 1,000 shares) of the Nasdaq-100 Trust ETF (symbol QQQQ)...both "in-the-money" as well as "out-of-the-money." This table was taken from the Excel® template you will use to find the best put option writing opportunities for you. The book also discusses the use of this template in detail. The table below examines "strike prices" from $32 to $36 and three different "expiration dates." Note the annualized yield that would be earned from put "premium" income in the last column on the right based on the initial margin requirement at the time the contracts were written.
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
QQQQ
18-Jun
18-Jun
18-Jun
18-Jun
18-Jun
16-Jul
16-Jul
16-Jul
16-Jul
16-Jul
17-Sep
17-Sep
17-Sep
17-Sep
17-Sep
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$35.00
$0.15
$0.30
$0.50
$0.90
$1.45
$0.40
$0.65
$0.95
$1.30
$1.85
$0.95
$1.25
$1.60
$2.00
$2.50
$0.00
$0.00
$0.00
$0.00
$1.00
$0.00
$0.00
$0.00
$0.00
$1.00
$0.00
$0.00
$0.00
$0.00
$1.00
$33.00
$34.00
$35.00
$36.00
$37.00
$33.00
$34.00
$35.00
$36.00
$37.00
$33.00
$34.00
$35.00
$36.00
$37.00
$0.15
$0.30
$0.50
$0.90
$0.45
$0.40
$0.65
$0.95
$1.30
$0.85
$0.95
$1.25
$1.60
$2.00
$1.50
$10,000
$10,000
$10,000
$11,400
$12,950
$10,000
$10.000
$10,450
$11,800
$13,350
$10,000
$10,000
$11,100
$12,500
$14,000
28
28
28
28
28
56
56
56
56
56
119
119
119
119
119
$ 150
$ 300
$ 500
$ 900
$1,450
$ 400
$ 650
$ 950
$1,300
$1,850
$ 950
$1,250
$1,600
$2,000
$2,500
$ 0
$ 0
$ 0
$ 0
$1,000
$ 0
$ 0
$ 0
$ 0
$1,000
$ 0
$ 0
$ 0
$ 0
$1,000
$ 150
$ 300
$ 500
$ 900
$ 450
$ 400
$ 650
$ 950
$1,300
$ 850
$ 950
$1,250
$1,600
$2,000
$1,500
21.90%
43.80%
73.00%
115.26%
50.73%
27.55%
44.76%
62.61%
75.87%
43.85%
29.89%
39.33%
45.36%
50.34%
33.71%
PUT and CALL OPTION COMBINATION WRITING
The following represents two actual uncovered put and call combination writing alternatives on 10 put and 10 call contracts (equivalent to 1,000 shares each) of the Nasdaq-100 Trust ETF (symbol QQQQ) "out-of-the-money" puts and calls. These tables were taken from the Excel® template you will use to find the best put and call option combination writing opportunities for you. The book also discusses the use of this template in detail.
The first table below examines a "strike price" of $36 for the calls and $34 for the puts, with 25 days to the "expiration date." The annualized yield that would be earned from put and call "premium" income is calculated in the last column on the right based on the initial margin requirement at the time the contracts were written. However, since in combination writing needs only one margin requirement to support both the put and the call writing transactions, you will find the total combined annualized return below the individual calculations.
The second table uses a strike price of $37 for the calls and $33 for the puts, with 53 days to expiration.
Note: Commissions have not been applied to the above transactions, as commission schedules for different broker/dealers vary widely. The software templates provided with the book allow you to enter your applicable commission schedule(s) into the templates for accurate calculations. The income and annualized yield calculations in the above examples would be reduced slightly if commissions were applied.
CALLS
PREM. PREM. $ NET %
SEC. EXPIR. # OF SEC. STRIKE INTRIN. TIME MARGIN # OF PREM. RTN. OF PREM. ANNUAL
SYM. DATE CONTS. PRICE PRICE PREM. VALUE VALUE REQ. DAYS INCOME CAPITAL INC. RETURN
