My previous strangle of PMT expired out of the money over the weekend.
music selection: “Talk To Me” — Stevie Nicks
weigh-in: 216.8 (1.2) – Finally! Some progress
PennyMac is a nice little REIT that is currently a hedge fund darling. It yields over 13%. It also has options so I’m cleaning up on income here. For the covered call leg, I sold PMT160520C00015000 for a nickle. It doesn’t yield much, 3.69% over 33 days, but its bonus yield above the fat dividend stream.
For the written put leg, I sold PMT160520P00012500 for 20 cents a contract. The annualized yield is 17.70% over 33 days. The trade enjoys 8.14% downside protection. It seems unlikely I will get assigned here but I will be very happy if I am.
Devour your prey raptors!