The rest of my order filled.
music selection: “Lonely Ol’ Night” — John Mellencamp
On 15NOV2019, I was able to close a position in the JC Penny bond (CUSIP: 708130AD1) for a 66.31% annualized return by selling at 97. I immediately opened a good till canceled order to get back in the trade if the bond fell to 93 or lower.
On 21NOV2019, I got a fill for 1 bond at 92.9120. I left the other 7 bonds on the order open and I got a fill at 93 on 02DEC2019. I have a full allocation to this bond and a 20%+ yield to maturity. I’ll be looking to close early if I can earn 30% or more by doing so but expect that I will hold to close to maturity with this bond maturing soon on 01JUN2020.
Ravenous lizards playing the home game can look to buy the bond up to 93. I may move that guidance up as the maturity gets closer. There is some easy money to be made here and it is a mortal lock that JCP can pay this bond in full as it has a enough room on its credit revolver to cover the outstanding amount at par.
Devour your prey raptors!