I am continuing to raise cash.
music selection: “Through Glass” — Stone Sour
weigh-in: 213.0 +0.6
Of my Friday expiries, MSFT, LNG, and DIS left me with open long positions. I have exited LNG by selling 400 shares at 40.99. That raised 16,396 in cash and booked a 3,276 profit in about 8 months. For Microsoft (MSFT), I sold MSFT161125C00057500 for 1.50. The trade will be in force for 40 days and yields 23.8% annualized. I hope to get called to continue raising cash. For Disney (DIS), I sold DIS161125C00100000 for 8 cents a share. The trade will be in force for 40 days and yields a miserable 0.73% annualized. I remain eligible to collect dividends at least. I could be some time before I am able to exit this position profitably.
I also did some tax loss harvesting on Capital Products Partners LP (CPLP). I sold 4283 shares from Interactive Brokers for 3.07 a share. That raised 13,148 in cash and resulted in booking a 15,467 capital loss (ouch!) The position was roughly break even after dividends collected during the holding period but harvesting the tax loss was more important than hoping for a full price recovery. I should have used a trailing stop loss on this one and locked in a fat gain. Live and learn. I also sold 619 shares of CPLP from my Wells Fargo account. That raised 1900 in cash and resulted in booking a 2,204 capital loss. I no longer expect a tax liability for 2016 and should qualify for the maximum Obamacare subsidy. Bonus!
I redeployed the cash proceeds from CPLP. In Interactive Brokers, I sold BPT161118P00020000 for 1.00 a share. That trade will be in force for 33 days and yields 55.30% annualized with 5.48% downside protection. In Wells Fargo, I actually put some additional cash back in the portfolio (withdrawal rate will reflect this change at month end). I bought Advent Claymore Convertible Securities and Income Fund (AGC). I picked up 579 shares at 5.55 each. I’ll earn 10.16% yield on those shares.
Devour your prey raptors!