SMG was assigned early.

music selection:  “The Humpty Dance” — Digital Underground

weigh-in:  200.6 (0.4) – so close!

I had two puts open on SMG at the 90 strike and April 20 expiry.  One was assigned on Thursday and the second on Friday.  I sold SMG180518C00090000 on Thursday for 74 cents a share and again on Friday for 85 cents a share.  The trades will be in force for 37 and 36 days respectively and yield an expected annualized 8.11% and 9.58% respectively.  This position is a little disappointing but I think I will get a lot of earnings out of it long term with relative safety.

Two puts in MSFT finished in the money on Friday and were assigned over the weekend.  I am in with a cost basis of 93.50 and have an opportunity to write covered calls that seek to earn some bonus capital gains.  I sold MSFT180525C00094500 for 3 dollars a share.  The trade will be in force for 40 days and yields an expected 29.28% annualized if unassigned.  If shares are called at the end of the 40 days, the annualized return will be 39.04%.  Not too shabby.

I am entering a buy-write on CenturyLink (CTL).  This is a company that has been known as a telecommunications provider to rural areas and was heavily invested in the old “copper cage” technology.  They bought Level3 and shares have fallen by about half on concerns the company has too much debt.  The bond market disagrees and the bonds still sell for around par.  I expect the price to recover to 30 or so over the next couple years.  This provides an opportunity to write out of the money covered calls while collecting the excellent underlying 12+% distribution.  I purchased shares at 17.38 and sold CTL180525C00019000 for 24 cents a share.  The trade will be in force for 40 days and yields an expected 12.60% annualized if unassigned.  In the unlikely event shares rally to 19 in the six week period, the annualized yield will be 97.66%.

Devour your prey raptors!

Assignments and Trades

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