On Monday, I wrote some covered calls on Hi-Crush Partners LP (HCLP).
music selection: “And She Was” — Talking Heads
I previously wrote puts on Hi-Crush Partners LP (HCLP) that were assigned. The price has continued to fall as demand for fracking sand has deteriorated. I think this one will be back as they get significant revenue from non-frack sand customers.
I was able to sell HCLP160115C00012500 for 0.10 a contract. The trade will be in force for 54 days and provides 5.41% bonus yield while I wait for price to recover. The underlying yields a little over 6% on my cost basis so I think this one is going to work out OK for the Lizard King.
Devour your prey raptors!