A short put and a bull call spread.
music selection: “My Mirage” — Iron Butterfly
weigh-in: 219.4 (1.0)
A short put in American Express (AXP) expired out of the money over the weekend. I am rolling it forward. With shares at 102.39, I am selling the 100 strike 13NOV2020 put. I got 4.15 pricing. For the 40 days the trade will be in force, the expected return is 37.87% annualized. I have 6.14% downside protection to the break even point.
With the election looming, I want something stable for this week’s bull call spread. I’m going with Berkshire Hathaway (BRK-B). I bought the 200/205 strikes bull call spread for 3.75 a share. I’m at the 20NOV2020 expiry so the trade will be in force for about 47 days. There is 3.64% wiggle room to the downside before profits are threatened. The expected yield should prices not fall below 205 is about 33% or 260% annualized. I like my chances here.
Devour your prey raptors!