Half a bond position cleared limit order today.
music selection: “Rhythm of Love” — Scorpions
On 17DEC2015, I purchased two units of the Transocean (RIG) 6.500 coupon, 15NOV2020 expiry bond. I paid 69.352 cents on the dollar and paid commissions of 7 dollars. I also paid 42.96 in accrued interest. One of the two bonds sold today. I received proceeds of 91 cents on the dollar, paid a 8.75 commission, and received 7.76 in accrued interest. The bond also has one paid coupon for an additional 32.50 in return. The trade was in force for 189 days and has an annualized round trip return of 59.94% after fees and interest. I have moved up the limit order on the remaining bond to an ask of 92 cents on the dollar. I think I can get it if there is some near term price strength in the oil market. Overall, I pocketed 223.01 in profit for 718.50 put at risk in just six months time. I feel this was done with less risk that investing in stocks or options. Once I get some long positions called away from in the money covered calls, I will deploy some more capital to this strategy.
Devour your prey raptors.