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Cash Secured Put Sirius XM (SIRI)

Shares of SIRI were called away over the weekend so I am re-establishing a position.

music selection:  “Rammlied” — Rammstein

weigh-in:  213.0 +2.4 – over indulged at the China Buffet.

Shares of SIRI rallied to almost 5.50 during my holding period and shares were called away.  I still believe in this company and am re-establishing my put at a higher strike.  I sold SIRI170818P00005500 for 28 cents a share.  The trade will be in force for 47 days and yields 39.54% annualized while enjoying 4.92% downside protection from a drop in share price.

Making almost 40% annualized on a trade; especially one that actually lowers your risk versus just owning the underlying, is remarkable.  I sold 18 contracts putting 9,900 at risk and collected instant income of 504 dollars that is mine to keep win, lose, or draw.

There probably wont be any new trades for a weeks until my Blackstone (BX) puts expire.  That one is in the money by 15 cents and looks like it might go down to the wire for assignment.  I’d be glad to own shares at the 33.5 strike and begin collecting the fat dividend distribution while writing calls for bonus income.

Devour your prey raptors!

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