I modified my short position in AMC Networks (AMCX).
music selection: “Wake Up” — Three Days Grace
On 4DEC2017, I shorted 93 shares of AMCX at 53.93 a share. Shares are down modestly since then. I have sold short an additional 7 shares at 50.91, bringing total exposure to 5,371.86. Now that I have 100 shares, I am juicing the trade with a covered put. This is much like a covered call position in reverse. If shares trade below the strike at expiration, I will be assigned 100 shares which will cancel out the 100 I hold short, leaving me with no position.
I sold AMCX180316P00045000 for 60 cents a share. The trade will be in force for 37 days and yields an expected 13.15% annualized. I have room for about 5 dollars in additional capital gains available from continued declines share price. And my stop loss moves to 66.96 per share. I will close the position if AMCX closes ABOVE 66.96 per share at the end of any trading day. I currently am 367 dollars up in the trade.
Devour your prey raptors!