I have been assigned on my puts in ON.

music selection:  “How Could I Forget” — The Faint

Back on 22JAN2018, I sold puts in ON Semiconductor (ON).  It looked like a good trade before the broad market correction began.  Shares have tanked since that and now trade around 20 a share.  I was assigned today at the 25 strike.

I have not triggered a stop loss in this trade so I’m writing covered calls to earn a little income on what would otherwise be ‘dead money’ for me while I wait for the market to shake off the correction.  I sold ON180316C0002500 for 10 cents a share.  The trade will be in force for 36 days and yields 4.06% annualized.  It doesn’t look like much compared to recent options returns but it beats being parked in 10 year Treasurys by a mile.

On just the underlying, I’m down about 20%.   However, after accounting for options premiums collected on ON so far, I’m only down 11.76%.  My stop loss is currently at 17.61 a share.  I will close the trade if the stock finishes a day below that mark.  Never enter your stops into the market.  You wouldn’t play poker with your cards showing.

Devour your prey raptors!

Early Assignment ON Semiconductor (ON)

Never miss another opportunity to devour prey!

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