Made a couple of moves on Thursday.
music selection: “Out Of Line” — Device
weigh-in: 217.0 +2.0
First is a short bias trade. I bet against Foot Locker (FL). FL is a mall based retailer. For now it will avoid bankruptcy but there is pain ahead. Same store sales have been flat for 3 years. While online sales have been growing, there is competition around the corner. Its main suppliers have started selling direct to the consumer. This should cut deeply into sales and margins. I bought the 25 strike 21JAN2022 expiry put for 6.30 a share (two contracts). My price target is 7.00 per share.
I also rolled my NLY covered call. It was in the money and shares were due to be called on Friday. I wanted the 22 cent distribution going ex-div today. So I closed the calls and opened 31JUL2020 6.5 strike calls for a net credit of 12 cents a share. That is good for a 19.73% annualized return. Adding in the distribution, the annualized return for the trade is 55.90%. I hope to roll the trade to a 7 strike to capture more upside when possible.
Devour your prey raptors!