On Monday, my PSEC covered calls were called away prematurely. I have rolled the position forward.
music selection: “Private Eyes” — Daryl Hall and John Oates
It looked like last night I’d be able to get 9 cent pricing. Today, the bids were holding firm at 5 cents. I set a limit order for my minimum return at 6 cents and ended up waiting all the way through lunch for a fill. I was able to sell PSEC160520P00007000 for 6 cents a share. The trade will be in force for 24 days and yields 13.04%. The trade also enjoys 9.16% downside protection.
I’d like to see shares fall back into range why I can get assigned but it looks unlikely. Thirteen percent will serve me well either way.
Devour your prey raptors!
Write Puts Prospect Capital (PSEC)