I wrote puts on SXCP.
music selection: “Dead & Bloated” — Stone Temple Pilots
I tried to write out of the money puts on this one yesterday and failed to get attractive pricing. I gave it some thought and decided that the coal space might deserve its new higher valuation in the Trump world and wrote at the money instead today.
I sold SXCP170120P00020000 for 1.15 a share. The trade will be in force for 60 days and has an annualized yield of 34.98% while enjoying 8.05% downside protection. This is an excellent yield. Assignment would result in a yield on the underlying over 11.5%. I expect to do well here.
Devour your prey raptors!