Positioning myself defensively with the election approaching.
music selection: “Release” — Sunshine Blind
weigh-in: 216.4 (1.4)
First the five positions that expired over the weekend. Franco Nevada (FNV) finished with the high strike of the bull call spread out of the money and I was assigned 300 shares. I was able to sell the shares for exactly the high strike this morning so the full expected return of 248% annualized was earned. A bull call spread in Zendesk (ZEN) finished in the money earning 495% annualized. The last 100 shares worth of Comcast (CMCSA) that did not get assigned early finished in the money and earned 351% annualized. Short puts in Annaly Capital Management (NLY) expired out of the money and earned 22% annualized. Finally, short puts in Hannon Armstrong (HASI) finished out of the money and earned 53% annualized. The weekend saw 3,391 in closed premiums earned.
I rolled my Annaly (NLY) puts to the 20NOV2020 expiry and 7 strike. I got 15 cent pricing for a trade that will be open about 33 days and yields an expected 30.58% annualized. This re-establishes the strangle on the position.
With shares of Colgate Palmolive (CL) selling for 80.21 I bought the 85/87.5 bear put spread with 20NOV2020 expiry for 2.25 a spread. The trade will be in force for about 33 days and benefits from 5.97% downside protection, which would be a large upward move in a month’s time for Dividend Aristocrat. Should the downside protection not be breached, I will earn 11% over 33 days or 123% annualized. I like my chances.
Devour your prey raptors!