Seven positions expired today with the closing bell.
music selection: “Sunshine Of Your Love” — Cream
Unlike most people who have taken to blogging about options, I usually let my contracts go to expiration rather than close early. I just don’t feel it is worth the effort to squeeze out a few more basis points but trade twice as often. Six of my seven positions expired out of the money. One covered call will result in shares being called away.
A covered call in PSEC expired 3 cents out of the money. I earned 18.70% annualized on that position and will roll it forward on Monday.
A cash secured put on SXCP expired well out of the money. I earned 55.85% annualized on that position. The position has run away from me a little bit. I don’t want to go up a strike so I’ll probably take less premium and more downside protection here on Monday.
A cash secured put on BPT expired a buck-fifty out of the money. I earned 55.30% annualized on BPT. I should be about to roll for something in the range of 40% annualized on Monday.
A covered call in GEL expired 3.38 out of the money. I earned 26.21% annualized on that position. I will open a new covered call at the same strike on Monday and expect to fetch a lower return as I’ll be writing further out of the money.
A covered call in MAA expired 5.95 out of the money. I’m a little disappointed by price action here but I’m being compensated well by dividends while I wait for this one to recover. I earned 14.78% annualized on the options position and will reopen on Monday.
A cash secured put in CNNX expired out of the money as the position moved mostly sideways since inception. I earned 31.59% annualized on the position and will roll it forward on Monday for more fun and profit.
My covered call in PMT is going result in shares being called away. I earned 37.44% on the options position and will go back to the trough with a cash secured put on Monday. The yield will be a little lower but well within my 12% target.
Two positions expire next Friday (DIS, and MSFT) and I hope to be called away on each to raise cash.
Devour your prey raptors!
hi,
you are doing awesome things without closing your positions. how is it possible that you make so high annual returns ? do you trade your options near the money?
what is your average annual return if I am allowed to ask?
can you give me some tips to trade the UVXY?
thanks for your answer!
best regards from Austria
Chri
Chri,
There are plenty of issues in the US that have high annualized returns when trading near the money. I don’t have an answer to my average annual return as my monthly results are highly variable. For UVXY, I buy long dated options about 1/3 out of the money and sell when I’m about a dollar in the money.