I sold my UVXY puts in my tIRA account.
music selection: “When She Begins” — Social Distortion
I’ve been trying to close this position at a favorable point of the bid/ask spread for a couple days as it has moved into the money. On 29JUL2016, I bought 15 of the 16 strike UVXY 19JAN2018 expiry puts for 8.40 a share. That was a cash outlay of 13,440. Today, I sold those puts for 9.95 a share for proceeds of 15,920. My profit is 2,480. The trade was in force for 84 days and yields 80.18% on an annualized basis.
I rolled about half of the position into new UVXY puts (the other half will remain in cash as a hedge). I purchased the 11 strike 19JAN2018 expiry puts for 6.05 a share (10 contracts). My cash outlay is 6,655. I will target 200% annualized return or will sell around 10, whichever comes first.
In other news, I have positions expiring today. A 15 strike put in PMT will be assigned after closing a stinking 6 cents in the money. A put in BSM expires out of the money and will likely be replaced with puts in CNNX on Monday, depending on pricing. Covered calls in SDLP, GEL, and MAA expired out of the money. A covered call in HCLP will be exercised. This was as planned as I wanted to exit the position to harvest a tax loss of 3,000. Proceeds will sit in cash until the beginning of the year at a minimum while I play some defense.
I won’t be declaring the profit on UVXY in my accounting for monthly transparency as it is in my IRA and can’t really be spent. I don’t consider money I can’t spend as “income”; call me crazy. It will count towards my liquid networth however and be part of the withdrawal rate calculation.
Devour your prey raptors!