Several positions expired over the weekend.
music selection: “Mr. Blue Skies” — Electric Light Orchestra
weigh-in: 197.8 (0.2)
First a little housekeeping. My short position in AMCX triggered its trailing stop loss on Thursday. I stood by my discipline and bought to close on Friday. I booked a 1,444 short term capital loss on the trade. I collected 125 in covered put trades during the holding period bringing my net loss to 1,319. My only short positions are now a synthetic short in JCP, and a sell/write position in F.
Venator Materials (VNTR) expired out of the money over the weekend. I wrote fresh puts this morning. The trade was to sell VNTR180720P00017500 for 50 cents a share. The trade will be in force for 33 days and yields an expected 31.60% annualized while enjoying 3.90% downside protection.
Scotts Miracle Grow (SMG) continues to underperform. My calls went unassigned and I have rolled them by selling SMG180720C00090000 for 1.15 a share. The trade will be in force for 33 days and yields an expected 14.13% annualized. I am up a little over 2% in the trade after considering options premiums collected to date.
Shares of ON Semiconductor (ON) were called away over the weekend. I am selling puts again but reducing the exposure from 6 contracts to 4. I sold ON180720P00025000 for 80 cents a share. The trade will be in force for 33 days and yields an expected 35.39% annualized while enjoying 5.51% downside protection.
Match Group (MTCH) is still recovering from news that Facebook plans to enter their market. Shares have covered significantly and premiums are attractive. I sold MTCH180720C00046000 for 1.05 a share. The trade will be in place for 33 days and yields and expected 25.25% annualized.
My diagonal call in Lam Research (LRCX) is performing poorly and is down 3,159 since initiation. My short call expired over the weekend and I rolled down and out to LRCX180727C00205000 at 1.20 a share. The trade will be in force for 40 days and yields an expected 8.44% against my cost basis in the long call of 129.80.
Shares of Michael Kors were called away of the weekend. I am writing puts again by selling KORS180727P00068500 for 1.59 a share. The trade will be in force for 40 days and yields an expected 21.18% annualized while enjoying 2.02% downside protection.
Finally, my strangle in Seadrill Partners (SDLP) expired safely out of the money over the weekend. This has been a great play for me as the stock looks to be range bound for the foreseeable future between the 2.5 and 5 strikes. I can collect the underlying 12.58% distribution while earning low risk bonus premium. I am up 47.53% in the position to date. I rolled the position by selling SDLP181221P00002500 and SDLP181221C00005000 for 20 cents and 5 cents, respectively. The trades will be in force for 187 days and yield an expected 15.61% and 1.95% respectively. The short put enjoys an impressive 27.67% downside protection. I hope to continuing trading this position for a long time.
Devour your prey raptors!