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18NOV2016 Expiries

Seven positions expired today with the closing bell.

music selection:  “Sunshine Of Your Love” — Cream

Unlike most people who have taken to blogging about options, I usually let my contracts go to expiration rather than close early.  I just don’t feel it is worth the effort to squeeze out a few more basis points but trade twice as often.  Six of my seven positions expired out of the money.  One covered call will result in shares being called away.

A covered call in PSEC expired 3 cents out of the money.  I earned 18.70% annualized on that position and will roll it forward on Monday.

A cash secured put on SXCP expired well out of the money.  I earned 55.85% annualized on that position.  The position has run away from me a little bit.  I don’t want to go up a strike so I’ll probably take less premium and more downside protection here on Monday.

A cash secured put on BPT expired a buck-fifty out of the money.  I earned 55.30% annualized on BPT.  I should be about to roll for something in the range of 40% annualized on Monday.

A covered call in GEL expired 3.38 out of the money.  I earned 26.21% annualized on that position.  I will open a new covered call at the same strike on Monday and expect to fetch a lower return as I’ll be writing further out of the money.

A covered call in MAA expired 5.95 out of the money.  I’m a little disappointed by price action here but I’m being compensated well by dividends while I wait for this one to recover.  I earned 14.78% annualized on the options position and will reopen on Monday.

A cash secured put in CNNX expired out of the money as the position moved mostly sideways since inception.  I earned 31.59% annualized on the position and will roll it forward on Monday for more fun and profit.

My covered call in PMT is going result in shares being called away.  I earned 37.44% on the options position and will go back to the trough with a cash secured put on Monday.  The yield will be a little lower but well within my 12% target.

Two positions expire next Friday (DIS, and MSFT) and I hope to be called away on each to raise cash.

Devour your prey raptors!

{ 2 comments… add one }
  • easydividend November 20, 2016, 9:49 am

    hi,

    you are doing awesome things without closing your positions. how is it possible that you make so high annual returns ? do you trade your options near the money?

    what is your average annual return if I am allowed to ask?

    can you give me some tips to trade the UVXY?

    thanks for your answer!
    best regards from Austria
    Chri

    • The Lizard King November 20, 2016, 1:20 pm

      Chri,

      There are plenty of issues in the US that have high annualized returns when trading near the money. I don’t have an answer to my average annual return as my monthly results are highly variable. For UVXY, I buy long dated options about 1/3 out of the money and sell when I’m about a dollar in the money.

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