My old put on QCOM expired safely out of the money so I opened a new one.
music selection: “Panic Switch” — Silversun Pickups
Qualcomm has treated me right so far. It is a solid, cash flow gushing business. I think of it as being a sort of “digital utility”. Demand is essentially ensured as society doesn’t work without their products and services. On the 25th, I sold QCOM160603P00051000 for 98 cents a share. That trade will be in force for a scant 40 days. It has an annualized yield of 17.53%. It also came with downside of protection of 4.89%. It has moved to an in the money state anyway with the recent market swoon.
In other news, three positions expire today. AT&T will likely be assigned to me, as planned. I’ll write slightly out of the money covered calls against that position to earn modest income while waiting on upside price appreciation. Both sides of my strangle on Cheneire Energy will expire out of the money. I’ll open a new strangle next week for more income. Disney will expire well out of the money. I’ll have to assess that one next week to see if an attractive trade is still available at the current market price.
I’ll be back on Monday with the April Transparency post.
Devour your prey raptors!