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Early Assignment Blackstone (BX)

Shares of BX were assigned to me early today.

music selection:  “Beast Of Burden” — The Rolling Stones

On 17JUL2017, I sold BX170825P00034500 for 90 cents a share.  Shares have moved into the money and I was assigned early this morning.  There isn’t much demand for 34.50 strike covered calls but I took a swing anyway.  I sold BX170922C00034500 for 11 cents a share.  The trade will be in force for 38 days and yields 3.06% annualized.

The underlying shares yield 6.26% annualized based on distribution divided by 34.50 cost basis.  I could realistically end up collecting that as shares are showing some weakness.  I like Blackstone long term as dividend play.  They have a very strong underlying business with high margins and steady growth.  There is a lot of variability in the distribution but I expect distribution growth to be the trend over time.

Devour your prey raptors!

{ 2 comments… add one }
  • Maria August 16, 2017, 4:00 pm

    You mean you were assigned the put at 34.5, not the call (typo)?
    Thanks! I am scared of early assignments and I always roll preemptively.

    • The Lizard King August 16, 2017, 10:52 pm

      Yes, my bad. Thanks for the catch. I’ll correct that.

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