My previous covered call expired out of the money. Covered calls on DPM expired in the money and I’m deploying those funds to written puts in AMLP.
music selection: “Man In The Box” — Alice In Chains
AMLP is a high yielding ETF in the MLP space. I like the yield and diversification in one package. It also has options allowing for a bonus yield kicker. On Monday I sold AMLP160715C00013000 for a dime a share. That trade yields 3.78% additional annual yield over the dividend distribution over 89 days. It is somewhat out of the money allowing for capital gains if it expires in the money.
I also sold AMLP160715P00010000 for 0.30 a share. That trade yields 12.30% annualized over 89 days. It also enjoys 13% downside protection. Although I’d be happy to own shares at 10 dollars each. Ordinarily, I like expiries that are 35 to 50 days out. In this case, there was no liquidity to found at near term expiries so I went further out to get filled.
Devour your prey raptors!