A call expired out of the money over the weekend.
music selection: “In The Waiting Line” — Zero 7
weigh-in: 210.0 n/c
Performance in Blackstone (BX) has been a little disappointing as far as short term moves go. I think this is a stock that would make a good long term buy and hold. It has not been immune to trade related news however. I am down 1.4% after options earnings. Today, I’m writing a new covered call to earn additional income while I wait on price recovery.
I sold BX190712C00039500 for 57 cents a share. The trade will be in force for 40 days and yields an expected 13.17% on an annualized basis. This is a pretty good yield for a stock that has been moving against me. I think that shows the power of the covered call approach.
However, as the bull market wears on, I’ll be looking to exit long stock positions and write more net debit spreads to lower my exposure while still earning acceptable income. I’ll also be tightening stops to raise cash into the upcoming bear market so I can tilt into distressed bonds. A once in a decade opportunity in distressed bonds is right around the corner. I hope to have enough dry powder to take advantage.
Devour your prey raptors!