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Four New Trades

Five positions expired over the long weekend.

music selection:  “Last Dance” — Donna Summer (Disco, raptors!)

weigh-in:  206.4 +2.2

My short puts in Match Group (MTCH) expired well out of the money on Saturday.  I am returning to this trade by selling more puts.  I sold MTCH180316P00041000 for 1.55 a share.  The trade will be in force for a scant 25 days and yields an whopping expected 55.20% annualized while enjoying 5.37% downside protection.

Next up is Suncoke Energy Partners (SXCP).  This is a metallurgical coal MLP that I have held for some time.  The price action has disappointed by the strong yield over 12% has kept me in the black.  I sold SXCP180316C00020000 for a nickel a share.  The expected annualized yield is only 3.65% over 25 days but I remain eligible for the fat underlying distribution.  So this is all “bonus” yield.

My strangle in Sirius XM (SIRI) ended with shares being called away.  I still like SIRI at the new price so I’m writing some more puts to take advantage of a great business with excellent scalability.  I sold SIRI180329P00006000 for 22 cents a share.  The trade will be in force for 38 days and yields an impressive expected 35.22% annualized while enjoying 4.93% downside protection.

Finally, my covered put in short position Express Scripts (ESRX) expired out of the money.  I am writing a new out of the money put to earn some more income while I wait for the short thesis to play out.  I sold ESRX180329P00072500 for 2.07 a share.  The covered put yields an expected 27.42% annualized over 38 days.  I have room for 3.55 in short term capital gains before shares are called away.

Devour your prey raptors!

{ 2 comments… add one }
  • Chris B February 22, 2018, 5:30 pm


    Was ON your only long put position that turned into an assignment during the correction? Did you apply stop losses during the correction, or did you hold patiently waiting for the recovery?

    I was dumb enough to sell covered calls at the bottom. That quickly turned into a fiasco.

    • The Lizard King February 23, 2018, 5:56 pm

      So far it is the only one. I followed my stop losses but none of them triggered. The “crash” was really just a minor correction. Ten percent declines are normal and should be expected every 18 months or so. They shouldn’t normally do irreversible damage to a well balanced portfolio.

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