QQQ @ $585.55 UNDERWATER $21.45 (3.5% below SS)
10 contracts (1,000 sh) | SS: $607.00 | IV: LOW
LC: $450 exp 2027-01-15 (entry $182.891/sh)
SP: $610 exp 2027-01-15 (entry $45.576/sh)
HP: $515 exp 2026-06-30 (entry $9.579/sh)
Current CCs
| Contract | Expiry | Type | Status | Sigma | Survival | Entry |
|---|
| 10x $603 call | 1 Apr 2026 (7d) | FIGHT | ACTIVE | σ 1.08 | 86% | entry $2.39 |
Economics
| Max Loss | $241,894 | (ND $146.89 + SW $95) x 1000 |
| Normal income ref | $9,071/mo | 45% ann ROI on ML |
| Hedge rolling cost | $3,099/mo | |
| FIGHT CC | $591 call, $6.84 bid | exp 1 Apr 2026 (7d DTE) |
| Conservative CC | $607 call, $2.17 bid | exp 6 Apr 2026 (12d DTE) |
FIGHT Allocation
| Contracts | Income/mo | Net/mo | CC→SS Gap | Net@SS |
|---|
| Cover hedge | 0/10 | $5,425 | $2,326 | $0 | $25,697 |
| Match normal | 3/10 | $12,592 | $9,493 | $2,748 | $22,949 |
| Full FIGHT | 10/10 | $29,314 | $26,215 | $9,160 | $16,537 |
FIGHT Options (exp 1 Apr 2026, 7d DTE)
Fortress delta: 1.198 (IBKR) | Gain@SS: $25,697
| OTM% | Strike | Bid | $/ct/mo | Survival | Hedge Ct | Match Ct | Gap/ct | Gap@Match | Net@Match | Net@Strike | Net@SS |
|---|
| 1% | $591 | $6.84 | $2,931 | 63% | 0/10 | 3/10 | $916 | $2,748 | $9,493 | $8,581 | $22,949 |
| 2% | $597 | $4.20 | $1,800 | 76% | 0/10 | 6/10 | $580 | $3,480 | $9,871 | $16,237 | $22,217 |
| 3% | $603 | $2.26 | $969 | 86% | 0/10 | 10/10 | $174 | $1,740 | $6,587 | $23,165 | $23,957 |
| 5% | $615 | $0.39 | $167 | 97% | 10/10 | 10/10 | $0 | $0 | $-1,428 | $35,671 | $25,697 |
* = cannot fully match normal income with 10 contracts
TRADE RECOMMENDATION (match normal income)
Sell 3: QQQ $591 call (exp 1 Apr 2026, 7d DTE, ~$6.84 bid)
Keep 7: $607 CC (~$2.17 bid)
Net income: $9,493/mo (target $9,071)
Gap CC→SS: $916/ct ($2,748 across 3 contracts)
Legend
| Max Loss (ML) | Worst-case loss: (Net Debit + Spread Width) x shares. ND = LC entry - SP entry + HP entry. SW = SP strike - HP strike. |
| Normal income ref | Target monthly income: IV-based annual ROI on ML / 12 (LOW 45%, MED 75%, HIGH 95%) |
| Hedge rolling cost | Monthly cost to maintain the HP (protective put): (30 / HP_DTE) x HP_ask x shares |
| FIGHT CC | Short-dated, near-ATM covered call for income recovery |
| Conservative CC | Standard CC at safe strike (far OTM when underwater) |
| Cover hedge | Min FIGHT contracts to pay for the hedge rolling cost |
| Match normal | FIGHT contracts needed to reach normal income target |
| Gap/ct | Net gap risk per contract: (SS - strike - bid) x 100. Max loss if stock rallies to SS, net of premium received. |
| Gap@Hedge | Total gap risk at cover-hedge contract count |
| Gap@Match | Total gap risk at match-normal contract count |
| Net@Match | Monthly income after hedge cost at match-normal level |