Today is the third Friday of the month, regular options contracts expire.
music selection: “Breakup Song” — Greg Kihn Band
I have five positions expiring today. One results in assignment of shares.
Shares of PennyMac Mortgage Investment Trust (PMT) are being assigned as the result of a 15 strike written put that expired in the money. Shares were well out of the money until late Thursday when a downward surge on heavy volume started. It looks like an institutional investor is exiting PMT. I should be able to get 6.5% annualized return on a covered call on Monday and stay eligible for the far dividend payment.
Hi-Crush Partners LP (HCLP) is a huge disappointment. I had a written covered call at the 12.5 strike and have seen shares collapse to 4.38. Not sure if anything can be done here except hold to collect dividends while waiting for the market to turn.
Shares of CH Robinson Worldwide Inc. (CHRW) rose from 61.31 at the time I wrote a 65 strike covered call to 63.56 as of this writing. Shares were not called and this is a lone bright spot for today. The follow up covered call should net better than 25% annualized if pricing holds through the weekend.
Shares of DCP Midstream Partners LP (DPM) fell from 21.45 to 19.30 during the 27 days I had a pair of covered calls open. The 22.5 and 30 strike calls both expire out of the money. I will probably write 22.5 calls again but am uncertain if I can get enough premium to cover commissions on new 30 strike calls. The 22.5 strikes might yield as high as 8% annualized after the weekend. In the meantime, this is a very strong operator with a safe and delicious dividend stream. I’ll do OK just to hold and wait.
Devour your prey raptors!