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Stopped Out of Energy XXI Gulf Coast (EXXI)

A 50% trailing stop loss triggered for me in EXXI.

music selection: “Lovefool” — The Cardigans

I originally entered this position via purchasing two Energy XXI bonds at 25 cents on the dollar.  I paid seven dollars in commission and 58.67 in accrued interest.  I collected 247.50 in coupon payments before the company declared bankruptcy.

After bankruptcy, I was granted 12 shares in the new company.  I sold today at 19.20.  I also hold seven warrants with a December 2021 expiry and 43.66 strike.  I was not able to find a buyer for the warrants.  I expect them to expire worthless but will watch them as a lottery ticket item in case the price of oil is once again “high” in five years time.

All together, I lost 87.77 on the trade or (10.25%) annualized.  I could still turn the trade to a winner with the warrants but I don’t think it is likely.

Devour your prey raptors!

{ 2 comments… add one }
  • Chris B June 23, 2017, 1:58 pm

    Interesting how efficiently the bonds were originally priced. Had the price of oil been a hair higher, this might have been a breakeven situation.

    • The Lizard King June 23, 2017, 4:34 pm

      I had an unrealized gain and set a wide stop hoping for more. Should have just taken the money and run.

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