Another limit order cleared on a discounted bond today.

music selection:  “Save Our Souls” — Motley Crue

On 5FEB2016, I purchased two units of the Genworth 7.700 coupon 15JUN2020 maturity bonds.  I paid 71.25 cents on the dollar, 4 dollars in commissions plus 23.53 in accrued interest to enter the position.  Today, my limit order for 92 cents cleared the market.  I paid another 9.75 in commissions and received 14.97 in accrued interest.  In addition, during the holding period, I collected 77 dollars worth of coupons.  The trade was in force for 161 days and yields 73.31% annualized.

In other news, I had some options positions go to expiry today.

An AMLP strangle closes out outside of the money.  I will write a new strangle on Monday

An AAPL covered call expires worthless.  I will write a new call on Monday.

A covered call position in GEL has resulted in shares being called away.  I will open a cash secured put on Monday.

AHGP puts expire worthless.  The price has run away from me and I’ll say goodbye to this one for now.

ARLP puts expire worthless.  I’ll open a fresh put here on Monday.

A covered call position in HCP went down to the wire and expired seven cents out of the money.  I’ll write a new call on Monday.

SDLP puts expired safely out of the money.  I’ll roll the position if and only if I can get attractive pricing on Monday.

Devour your prey raptors!

Update Discounted Bonds

Never miss another opportunity to devour prey!

2 thoughts on “Update Discounted Bonds

  • July 18, 2016 at 2:18 pm

    So many moving parts, I love it! What is a strangle? I have had plenty of experience with covered calls and just got into naked puts (sold 2 of them lol).

    • July 18, 2016 at 6:03 pm

      Nice to have you as a reader Evan!

      A strangle is where you play both ends against the middle. You buy a half position in the underlying, then write a put for more shares and simultaneous covered call. You can’t get assigned on both sides of the trade, that is for sure! Good luck with your options trading.


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