I rolled four positions forward from Friday’s expiries.
music selection: “Tears Of A Clown” — Iron Maiden
weigh-in: 213.8 (1.2) – Good progress lately.
I have four expired positions that I am rolling forward. Two are cash secured puts and two are covered calls. The first is Qualcomm (QCOM). I sold QCOM160902P00060000 this morning for 1.45 a share. The trade will be in force for 40 days and yields 22.05% annualized. I also enjoy 3% downside protection in the trade. QCOM had strong quarterly results recently and is trading strong.
I also sold a put in Microsoft (MSFT). I sold MSFT160902P00056000 for 1.15 a share. This trade is also in force for 40 days and yields 18.74% on an annualized basis. Downside protection is 2.54%. Microsoft is another cash gushing machine I’d be happy to own at the strike of 56 if the trade turns against me.
In covered call action, I am still holding Cheniere Energy (LNG) with good capital gains. I expect further capital gains as construction completes and cash flows improve. I sold this morning, LNG160902C00049000 for 20 cents a share. That trade yields 5.21% annualized against my cost basis of 35 a share.
Finally, I sold a covered call on Disney (DIS). Disney has struggled a little since the release of Star Wars but is still a solid company. I sold DIS160902C00100000 for 1.22 a share. The trade will be in force for 40 days and yields 11.13% annually.
I have my eye on Cisco (CSCO) for additional written puts but did not pull the trigger today. Maybe next Monday.
Devour your prey raptors!