SPGI was threatened with expiry nearing.
music selection: “Don’t Leave Me Behind” — We Are The Fallen
My bull call spread in SPGI that was set to expire this Friday had one strike out of the money. I decided to close for near break even rather than swing for the fence due to the uncertainty imposed by the pending election. I bought the 350/360 strikes BCS with 16OCT2020 expiry on 15SEP2020 for 5.9633 per share. I sold today for 6.05 per share. On three spreads I cleared 26 dollars before commissions. The trade was in force for 29 days and yielded 18% annualized. Not bad for a trade that moved against me.
My limit order to close the 23 strike VXX put at 10.00 fill at close yesterday. I earned 1,360 in profit on 14,640 at risk over 69 days, which is good for 49% annualized. I rolled down and out to the 20JAN2023 expiry and 18 strike. I bought 17 contracts for 9.10 per share. I have 830 days for contango to do its thing. The underlying is currently trading for 22.12 and I will likely close close to the 18 strike. I still have a deeply underwater 13 strike VXX set of puts from January that are still suffering from being on the wrong side of COVID. My unrealized short term loss there is 5,740, and I’m hoping to recover that by holding and waiting for the underlying to at least approach the strike.
Devour your prey raptors!