I had three positions expire and Friday.
music selection: “Love Removal Machine” — The Cult
weigh-in: 214.2 (1.2)
AFSI was originally assigned on 24APR2017. I have already written covered calls against the position twice. Today, I wrote a third covered call. Shares are down 31% so I had to go pretty far out to find liquidity at the original 17.5 strike. I sold AFSI170915C00017500 for 25 cents a share. The trade will be in force for 117 days and yields 4.46% annualized. I’m using a larger than normal 35% trailing stop loss which would trigger at 9.67.
SM Energy (SM) was assigned over the weekend at the 22.5 strike. Oil is creeping up again so I see a good chance of this one getting called away on the new position. I sold SM170616C00022500 for 60 cents a share. The trade will be in force for 26 days and yields 37.44% annualized.
Sirius XM (SIRI) was also assigned over the weekend at the 5 strike. I sold SIRI170630C00005000 for 12 cents a share. The trade will be in force for 40 days and yields 21.90% annualized. I expect to play SIRI for a long time rolling in and out of puts and calls as appropriate to collect premium.
The three positions have a simple average annualized return of 21.26%. Even after 25% short term capital gains tax, this return is highly likely to beat the long term results of indexing to the S&P.
Devour your prey raptors!