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Monday Trades

Several positions expired over the weekend.

music selection:  “Stuck On You” — Lionel Richie

weigh-in:  201.6 +1.0 – so disappointing.

The AMCX covered put expired out of the money over the weekend.  I sold AMCX180518P00045000 for 15 cents a share to earn more income while I wait for the short thesis to play out.

Shares of ON were assigned over the weekend.  I sold ON180518C00025000 for 60 cents a share.  The trade will be in force for 26 days and yields an expected 33.69% annualized.

Puts on MTCH expired out of the money over the weekend.  I sold MTCH180518P00046000 for 2.35 a share.  The trade will be in force for 26 days and yields an expected 71.72% annualized while enjoying 6.55% downside protection. I reduced the position size from 3 contracts to 2.

Covered calls on SXCP expired out of the money over the weekend.  I sold SXCP180518C00020000 for 5 cents a share.  Not much money but the underlying yields 13.39% so this is gravy.  The trade will be in force for 26 days and yields an expected 3.51% annualized.

Covered puts in F expired out of the money over the weekend.  I sold F180601P00010000 for 7 cents a share to earn some additional income while I wait for the subprime lending short thesis to play out.  The trade will be in force force for 40 days and yields an expected 6.39% annualized.

The short leg of my diagonal call on SWKS expired out of the money over the weekend.  I sold SWKS180601C00102000 for 1.05 a share.  The trade will be in force for 40 days and yields an expected 15.04% annualized (against the modified cost basis of 63.70 a share).  Overall, I am now down 4,174 in the trade.

The short leg of my diagonal call on GRUB expired out of the money over the weekend.  I sold GRUB180601C00120000 for 1.20 a share.  The trade will be in force for 40 days and yields an expected 27.40% annualized (against the modified cost basis of 71.60 a share.)  Overall, I am now up 164 in the trade.

The next two trades represent a shift.  I am capitulating in TSCO and redeploying the capital to MIC.  I still believe in Tractor Supply but I find the opportunity in Macquarie Infrastructure to be more compelling.  I sold out of TSCO after a covered call expired out of the money over the weekend for 61.32 a share.  That represents a short term capital loss of 3,736.  Options premiums earned during the holding, including the ratio spread I closed today come to 764, making my net loss 2,972 or 18.59% annualized.

Macquarie Infrastructure is a high yielding play that operates infrastructure under mostly long term contracts, ensuring stable and growing revenue.  They own liquid shipping terminals, operate airports, and have an electricity generating business in Hawaii.  The current yield is about 15% a year.  I purchased shares for 38.62.  I want to hold shares and not turn them for options so I wrote out of the money covered calls for bonus income.  I sold MIC180518C00042500 for 13 cents a share.  The trade will be in force for 26 days and yields and expected 4.29% annualized.  I expect this to be a very long term holding.

Devour your prey raptors!

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