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Friday Expiries 17FEB2017

Six positions expired with the bell.

music selection:  “Fake It” — Seether

Five positions, two of which are puts and three of which are calls, expired out of the money today.  Those are: NAP, PMT, SXCP, GEL, MAA.  Average return across the five positions was 21.35% annualized and 1,070 in premiums were earned.  I plan to roll all these positions on Monday.

A cash secured put in AMLP finished in the money by two cents and will be assigned.  I’ll be buying 1,100 shares at 13 dollars.  My yield on basis will be 18.31% annually.  That is pretty good and I may be able to get a few hundred basis points more with an out of the money covered call at the 14 strike.  It will depend on if I can get enough premium to make the commission worthwhile.  This position yielded 35.5% annualized and generated 550 in premium income.

Total options income for the month of February is thus 1,620 from short options and 1,365 in long options on the long dated UVXY puts closed this week.  That is total options income of 2,985, more than covering my monthly budget needs.  Pretty nifty.

Devour your prey raptors!

{ 4 comments… add one }
  • easydividend February 18, 2017, 8:43 am

    hi,

    this is freaking awesome! I love this posts!
    i think you are some years ahead. thats why i love to read here. I know that I can make this income in a few years when my networth is a little bit higher.

    thanks for sharing!

    do you know what is your average annual realized return from trading options?

    keep it up!
    best regards
    Chri

    • The Lizard King February 18, 2017, 4:24 pm

      Thanks Easy Dividend. I don’t track my return on options over periods longer than a month. Sorry. You can see my annual total for the whole portfolio on the Transparency tab though.

  • JamesDavid February 24, 2017, 2:11 pm

    Hello Lord Lizard,
    Enjoy your music selections and the stock stuff also.
    I was wondering what your thinking was when one of your options are assigned slightly in the money as happened with the AMLP, would you prefer to; sell and make new investments, or write call as you described. I am sure the situation dictates.
    Must admit following your moves is challenging as I am new to options.

    • The Lizard King February 24, 2017, 2:53 pm

      James,

      Thanks for reading! I usually take assignment and write covered calls. I try to only write puts on an underlying I’d be happy to own at the strike. There is no downside risk that way.

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