My covered calls in Prospect Capital (PSEC) were called away early.
music selection: “Change Of Heart” — Cyndi Lauper
Time value remaining on the options was less than the distribution so shares were naturally called away prior to the ex-div date. This is something that happens. Investing in options the raptor way can be very lucrative. It isn’t a perfect strategy however. You get lowered risk and upfront cash but you give away upside potential to get it.
PSEC is a little too pricey to get into at the current spot price and options premiums have gotten skinny. I’m moving this one to my watch list for future consideration when pricing improves or premiums plump back up.
Devour your prey raptors!