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!

Colgate Palmolive (CL) trade with yield up to 123%

Never miss another opportunity to devour prey!

2 thoughts on “Colgate Palmolive (CL) trade with yield up to 123%

  • October 19, 2020 at 9:00 pm

    Did you say you have a strangle on NLY? An unlimited loss potential position?

    • October 20, 2020 at 1:50 pm

      short strangle, losses are not unlimited. E.g. half a position in shares with covered calls and short puts for the other half position.


Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.