Closed some positions.
music selection: “Wild World” — Cat Stevens
I had a bull call spread in Amazon (AMZN) that only needed a half a percent upward move to double my money. An uptrend was in place and it looked like a slam dunk. Price action since initiating the position has been all downhill though and I decided to capitulate today to preserve capital. I bought the 3200/3210 spread with 15JAN2021 expiry for 4.48 a share on 30NOV2020. I closed today for 3.55 a share. Across 8 spreads I lost 745 dollars on 3,585 capital at risk. That is a 21% loss over 12 days. With a bear put spread in BDX at risk, I’m on pace to make a little over 7,000 for the month of December in closed options positions. I’m hopeful to roll VXX for a little additional gain.
I have had a good till canceled order open on my AFSI bonds (CUSIP 032359AE1) for some time at par. Two of seven bonds cleared the market today. The first lot was from 18OCT2018, purchased at 95 cents on the dollar. I paid 1 dollar in commissions and 11.40 in accrued interest. I sold today for 100 and paid 1.375 in commissions and fees. I collected 122.48 in coupons during the holding period and 20.415 in accrued interest. Total cash outlay in 2018 was 962.40 and total cash as of today is 1,141.52. That is good for 18.61% over 785 days or 8.65% annualized.
The second bond from a separate lot was purchased for 93.5 cents on the dollar on 10JUN2020. I paid 1 dollar in commissions and fees as well as 19.91 in accrued interest. I sold for par today paying 1.375 in commissions and fees and collected 30.62 in coupons plus 20.415 in accrued interest. Total cash out in October was 955.91 and total cash in today was 1,049.66. That is good for 9.81% over 184 days or 19.45%. Both of these are good returns on a very safe “money good” bond. I have five bonds remaining subject to the good till canceled sell order at par.
Also approaching par and set with a good till canceled sell order at 100.0000 are OXY, PBFX, and FLR bonds. Bonds in BBBY, FET, and X are need to be held a little longer to get back to par. JCP is total loss and CBL is threatened. I’m hoping for a good outcome in the negotiations between CBL management and institutional bond holders. They are not making a tender offer to retail investors.
Devour your prey raptors!