Three positions expired this afternoon.
music selection: “Because I Got High” — Afroman
The three expiring positions averaged a yield of 43% annualized. I’ll be going with three names on Monday that should mirror that return.
First is Navios Maritime Midstream Partners (NAP). This expired out of the money. The valuation is getting a little rich so I’ll be moving on but putting that one on the watch list for future put writing. The return was 12.17% annualized earned over 60 days.
Next is insurer AmTrust Financial Services (AFSI). This is an insurer with strong operating numbers beset by an accounting scandal. The scandal appears to be limited to accounting treatments in a noncore part of the business and I think it will blow over. I will be assigned this weekend here and will write a covered call at my entry strike of 17.5 as premiums are quite high for AFSI right now. Going forward, I will only write covered calls here if I can earn at least 18% in annualized premium as I expect at least that much upside from just being long. I earned 94.81% here annualized over 33 days.
Finally, we have Shopify (SHOP). I’m high on this company and so is the market. It has rallied since my put was written and offers less attractive entry point. I’m going to take my 22.12% annualized return over 33 days and run. This one is a candidate for writing puts again if it falls back below 70 a share.
Monday, I’ll have the AFSI covered call trade, two puts in new names, and a new long idea in a ticker that has no options as of yet.
Devour your prey raptors!