I wrote a covered call on Prospect last Monday.
music selection: “Let’s Live For Today” — The Grass Roots
Prospect was originally opened as a Buy/Write position. The covered call expired worthless and I rolled the position forward. I was able to sell PSEC160520C00007000 for 30 cents a contract. The trade will be in force 89 days and yields 17.58% annualized. The position has moved in the money but I expect to collect at least 2 more .08333 dividends before being called away for some bonus yield. If called away, I will play the other direction with cash secured puts around the 7 strike.
Prospect is a well managed BDC that is currently yielding over 12%. This one is a great income play by writing options for additional yield. I expect to be able to play this one for several months.
In other news, The ABBV put I previously reported as having a 11MAR2016 expiry actually expires today (so my broker reports). I must have fat thumbed something when recording what I had sold. The put will expire well out of the money. I consider ABBV a buy up to 58 and will continue to write out of the money puts around 12% annualized yield up to that strike.
Devour your prey raptors!