JQC was slowly losing me money.
music selection: “Chainbreaker” — Primal Fear
I sold JQC at 6.11 (my entry prices were between 7.65 and 7.67). The CEF had a high yield but the NAV deterioration was eating that up plus some. I was down including distributions about $1,200. To replace most of the yield, I bought 3700 shares of Annaly (NLY) at 7.52 each. I already held 37 short puts at the 7 strike. I added 37 short (covered) calls at the 8 strike and 20NOV2020 expiry at a price of .09 cents a share.
The trade will be in force for 66 days and yields an expected 6.13% annualized. The underlying pays a little over 11% so my composite yield on the long shares is above 17%. This covers the yield from the sold shares of JQC.
I am now playing both ends against the middle on NLY. If the price falls, I dollar cost average in more shares. If they rise, I book a capital gain and get paid to wait.
Devour your prey raptors!