I have three new trades today.

music selection:  “Heard It On The X” — ZZ Top

weigh-in:  206.4 (0.6)

Five positions expired over the weekend.  I took assignment from a synthetic long on YINN and have about 23,000 in unrealized gains.  ORCL, ON, MKTX, and MTCH all expired out of the money.  MKTX has run away from my a little and no longer offers an attractive risk/reward ratio for new puts.  ORCL is offering weak pricing on puts so I’m replacing it with MSFT.

I sold ON180216P00025000 for 90 cents a share.  The trade will be in force for 26 days and yields an astounding expected 50.54% annualized while enjoying 4.17% downside protection.

I also sold MTCH180216P00032000 for 1.70 a share.  If ON treated me well with pricing, MTCH celebrated me.  The trade will be in force for 26 days and yields an expected 74.58% annualized while enjoying 6.37% downside protection.

Finally, I sold MSFT180126P00090000 for 2.65 a share.  The trade will be in force for 40 days and yields a respectable expected 26.87% annualized while enjoying 2.81% downside protection.

These three trades have an average expected annualized return of 50.66%.  I’ve rarely done this well with such strong companies.  My downside is owning three great businesses at attractive prices with the ability to write covered calls for more income.  Life is good.

Devour your prey raptors!

Monday Trades ON, MTCH, MSFT

Never miss another opportunity to devour prey!

3 thoughts on “Monday Trades ON, MTCH, MSFT

  • January 23, 2018 at 7:27 pm

    Does your broker (or anyone else’s – feel free to chime in) allow you to hold your margin in anything else than cash/money market funds? Seems like parking that cash in a liquid bond fund yielding 2-3% would be a big boost for a put peddler.

    • January 23, 2018 at 9:49 pm

      At interactive brokers, margin is margin. You have an allowance based on whether you are registered as Regulation-T or “portfolio margin”. If you exceed that threshold, an algorithm liquidates positions until you are in compliance. No margin is permitted in tax advantaged accounts, as required by law. The boost would be handy, but I’m past accumulation phase. I spend my put/call income for day to day needs.

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