My old put in PSEC expired worthless and I’m back for more.
music selection: “Invisible Sun” — The Police
Prospect is a BDC yielding over 13%. I’m making low ball offers via puts in hopes of getting assigned at an attractive price. Meanwhile, I’m earning a great yield on the puts. Assignment will result in writing covered calls against the position for bonus yield.
On Monday, I sold PSEC160617P00007000 for 8 cents a share. The trade will be in force for 26 days and yields 16.04% annualized. The trade also enjoys 7.7% downside protection. I plan to be playing this issue for yield for quite some time.
Devour your prey raptors!