I had seven positions expire over the weekend.
music selection: “Way Down We Go” — Kaleo
weigh-in: 207.2 (1.0)
I had naked calls open in CNNX, GEL, and AFSI after stopping out on the underlying. Those expired safely out of the money. In fact, all seven positions expired out of the money with no assignments. I rolled three positions, initiated a new one and failed to get a fill on PMT.
Market Axxess (MKTX) has climbed to the 195 range since the previous put. I’m writing a new put at the 195 strike but will probably not go much higher in the future. I sold MKTX180119P00195000 for 3.50 a share. The trade will be in force for 33 days and yields an expected 19.85% annualized. The trade enjoys 3.44% downside protection against a decline in share price.
I initiated a new position in Match Group (MTCH). This is an online dated website holding company which owns most the largest websites in the genre. It is a cash generating machine and is surprisingly attractively priced. I sold MTCH180119P00030000 for 1.00 a share. The trade will be in force for 33 days and yields an expected 36.87% annualized. The downside protection is 4.35%.
The final two positions are a re-establishment of my SDLP short strangle. This is an MLP that owns the most attractive offshore drilling equipment in the business. The underlying shares have an attractive 11.73% yield that looks sustainable due to long term contracts and a healthy backlog in place. The general partner was forced into bankruptcy and that has hurt the share price even though the limited partner is insulated. I sold SDLP180316C00005000 for 10 cents a share. The trade will be in force for 89 days and yields an expected 8.20% annualized. Shares are unlikely to be called away and I expect to collect the underlying distribution on these shares for a return close to 20%. I also sold SDLP180316P00002500 for 16 cents a share. The trade will be in force for 89% days and yields an expected 26.25% annualized. It also enjoys a remarkably safe 31.38% downside protection against a downward move in share price.
Devour your prey raptors!