It’s expiration Friday.  And I’m moderately inebriated.

music selection: “Rain” — The Cult

I have nine positions expiring today.  Six expire out of the money.  One results in shares being called away and two result in shares being assigned.

Suncoke (SXCP) results in shares being assigned at 20.   This is as planned as the put was written in the money with hopes of acquiring shares.  Shares fell 7.75% today making this a less attractive position but the underlying still yields 12.15% and will allow for covered calls to be written for bonus yield.

Rig Partners (RIGP) has an unclear result.  Shares were all bought by the general partner and converted to RIG.  I *think* I may see shares called away on a ratable basis except for 120 shares that were added to the buyout offer to sweeten the deal when shareholders revolted.  RIG currently has no yield but has a bright future.  I’ll reassess when I know precisely what I receive post expiry.

A covered call in Seadrill Partners (SDLP) expired out of the money.  I earned 7.16% annualized there in addition to the underlying yield and expect to do even better with a new covered call on Monday.

Prospect Capital (PSEC) will result in shares being assigned.  This is another example of a desired outcome.  Puts were written in the money with hopes of being assigned.  There has been some price appreciation so the time value on at the money covered calls should be even higher.  If I don’t get called away, the underlying has a nice dividend yield to reward me while I wait.

BP Prudhoe Bay Trust (BPT) is going to expire out of the money.  I would have liked to have gotten assigned or seen the share price stagnate so I could write puts again for almost 63% annualized gain but the price has run away from me with the recent rise in WTI spot price.  I’ll say goodbye to this one for now.

A written call in Genesis Energy (GEL) expired well out of the money.  There was very little price movement here over the duration of the contract and I will write a new covered call for an expected return similar to the 5% recently earned.  In the meantime, I remain eligible for a shot at the 7+% dividend yield.

Mid America Apartments (MAA) has traded flat (with some volatility in between).  I should be able to duplicate the 28% annualized return on puts with this one on Monday.

A put in Cone Midstream (CNNX) has run away from me.  I collect the full 16.78% annualized return but there will be no encore performance.  I wave goodbye to this one for now.  Maybe there will be a pullback to allow me to take another swipe.

It’s the same story with Digital Realty (DLR).  The written put has run away from me.  The 23.85% annualized return will not be duplicated.   I’ll replace this one with a new position to be revealed on Monday.

All told, the above positions provided 2,905 in options premiums for the month of January.  I also picked up 900 from selling UVXY puts in the month and have had a record month.  February won’t look as tasty but I expect a solid month nonetheless.

Devour your prey raptors!

Friday Expiries

Never miss another opportunity to devour prey!

2 thoughts on “Friday Expiries

  • January 22, 2017 at 5:09 pm
    Permalink

    Hey 🙂

    i love this posts!
    my 5 Puts on PSEC expired in the money as well.
    do you sell in the money calls too or are you waiting for a good premium on the strike at 9?

    2900 dollars from options premium is a very nice result.
    Do you have further informations of all your stocks? I dont know many of them.

    best regards
    Chri

    Reply
    • January 23, 2017 at 7:14 pm
      Permalink

      Hey Chri,

      I’m trying this morning to sell at PSEC call at 9 but not finding any liquidity on FEB or MAR expiries. I probably try again tomorrow, further out. I sometimes post a short explanation of why I’m investing in a new ticker the first time I write puts on it or buy for covered call. I’ll do that for GE later today.

      Reply

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