My old strangle on LNG expired out of the money and I am back for more.
music selection: “Almost Easy” — Avenged Sevenfold
Cheneire Energy is building natural gas export infrastructure. It should lead to a highly predictable and profitable business. I own 200 shares and will add 200 more at the right price. To that end I wrote LNG160610P00035000 for a 1.35 a share. The trade will be in force for 39 days and yields 36.10% annualized. The trade also enjoys 13.14% downside protection. The put is slightly in the money as of this writing.
I also sold covered calls, well out of the money, on my shares. I sold LNG160610C00048500 for 14 cents a share. That trade will be in force for 39 days and has an annualized yield of 4.28% against my 30.60 cost basis.
This one is a favorite of Carl Icahn who owns 19% and is agitating for more shareholder friendly management practices. I feel good about my chances here.
Devour your prey raptors!