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!

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Trades with yields up to 260%

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One thought on “Trades with yields up to 260%

  • October 5, 2020 at 4:07 pm
    Permalink

    That’s some good pricing on AXP!

    I’m also looking at LOW.

    Reply

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