More shares of LNG were assigned over the weekend.
music selection: “Shake, Rattle, And Roll” — Elvis Presley
Cheneire Energy (LNG) is a little bit different from my normal strategy. Instead of playing for current income, I’m angling for capital gains. LNG is an arbitrage play on the difference in the price of natural gas between North America and the rest of the world. They are building out export infrastructure to capture a huge profit. I think the company has a bright future.
On Monday, I sold LNG160722C00042000 for 18 cents a share. The trade will be in force for 40 days and yields less than five percent. But it is 24% out of the money, leaving me a lot of room to capture capital gains. I think this one can be a five bagger given enough time. I’ll keep writing out of the money covered calls until shares or called or the infrastructure build out is complete and the stock appears fully valued.
Devour your prey raptors!