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Write Put Sirius XM (SIRI)

My puts in SIRI expired over the weekend.

music selection:  “Shake Your Booty” — KC & The Sunshine Band

weigh-in:  204.6 (0.4)

Sirius XM is a great stock to write puts on.  The price action is slowly upward and stable and the premiums are fat.  My old puts expired safely out of the money and I’m going back for more.  I sold SIRI180511P00006000 for 23 cents a share.  The trade will be in force for 40 days and yields an expected 34.98% annually while enjoying 7.38% downside protection.  This is my seventh consecutive time writing options for income on SIRI and it is going quite well.

Devour your prey raptors!

{ 3 comments… add one }
  • Chris B April 3, 2018, 1:41 pm

    Trump’s trade war is an excellent recipie for rising inflation and interest rates. The deadweight losses from these taxes seem likely to tip the economy into a consumer-led recession in the next couple years. It might be a good time to offset your bullish options positions (e.g. short puts) and make the portfolio more neutral. If stocks have another 30% downside and rates are rising, this is the only way you’ll not end up selling low. It might also be a good time to switch to spreads instead of naked positions.

    The stagflation scenario being set up now is increasing my confidence that bullish spreads on GLD might be the play of the next couple years.

    • The Lizard King April 3, 2018, 1:48 pm

      I’m watching the interest rate spread on US Treasury’s closely. If they invert, it is time to get short exposure.

      • Chris B April 5, 2018, 6:09 pm

        The NFCI is another good recession predictor, with more variables accounted for. However, I wonder if any of our indicators provide sufficient notice.

        https://fred.stlouisfed.org/series/NFCI

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