Several positions expired over the weekend.

music selection:  “H.” — Tool

weigh-in:  196.6 (1.9)

ON and SDLP were assigned from in the money puts over the weekend.  Additionally, BHF, KORS, SMG, and VNOM expired out of the money.  I say goodbye to the last four as I’m working hard to deleverage.  The portfolio is a little bit of a mess after the recent volatility.  I think my early retirement is still secure but it could be a bumpy ride.

There was not an opportunity to get acceptable pricing on covered calls for SDLP or EPD today.  I’ll continue trying especially if pricing firms up.  Against 500 shares of ON, I wrote covered calls this morning.  I sold ON190118C00017000 for 33 cents a share.  The trade will be in force for 26 days and yields an expected 27.25% on an annualized basis.  I’m going to need returns like that to dig myself back out of the hole I have created.

Devour your prey raptors!

Monday trade ON Semiconductor (ON)

Never miss another opportunity to devour prey!

3 thoughts on “Monday trade ON Semiconductor (ON)

  • December 25, 2018 at 4:13 am

    So on Kors you got stopped out??

    • December 25, 2018 at 8:43 pm

      Yes, KORS stopped out at 25% trailing stop. I left the call open naked until it expired.

  • December 26, 2018 at 3:11 am

    I took an a– beating selling covered calls last summer. Of course I quit selling CCs in October, which would have been the perfect time to sell CCs. However the lesson learned was that if your calls get assigned, you could lose massive amounts of upside and potentially ratchet down from having 500 shares to work with to 400 to 300 and so on, even as you watch markets rally.

    What do we know about +20% corrections? We know they make strongly positive results more likely in the future. That’s why I’m less likely to write CCs now than I was in the past.

    If a 2009-style V shaped recovery is about to occur, the best move might be to do nothing.

    Be careful with those thoughts of clawing back losses. Every day is starting over with a brand new early retirement game.


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