My call on CHRW expired worthless over the weekend.
music selection: “Through The Fire And Flames” — DragonForce
I decided to double my exposure here with a strangle to play both ends against the middle. I sold both a put and call, only one can expire in the money.
I was able to sell CHRW160219P00062500 for 1.65 a contract. The trade will be in force 33 days and yields 29.20% annualized. I was also able to sell CHRW160219C00067500 for 85 cents a contract. That strike gets me back out at my cost basis if called. This trade will also be in force for 33 days and yields 13.93% annualized. The average yield for the combined position is 21.56% annualized. I have a total of 13,000 of capital at risk here and have generated 250 dollars in income for the month.
I’ll be back Friday with an update on what I did to roll forward my DPM position. Next Monday will be the same for PMT.
Devour your prey raptors!