Shares of BX were assigned to me early today.
music selection: “Beast Of Burden” — The Rolling Stones
On 17JUL2017, I sold BX170825P00034500 for 90 cents a share. Shares have moved into the money and I was assigned early this morning. There isn’t much demand for 34.50 strike covered calls but I took a swing anyway. I sold BX170922C00034500 for 11 cents a share. The trade will be in force for 38 days and yields 3.06% annualized.
The underlying shares yield 6.26% annualized based on distribution divided by 34.50 cost basis. I could realistically end up collecting that as shares are showing some weakness. I like Blackstone long term as dividend play. They have a very strong underlying business with high margins and steady growth. There is a lot of variability in the distribution but I expect distribution growth to be the trend over time.
Devour your prey raptors!