Three hundred shares from a bear put spread in SWK were assigned early.
music selection: “Sinister Eyes” — Running Wild
After this weekend’s early assignment of 200 shares of SWK I had 4 spreads remaining. I got notification from my broker this morning another 300 shares had been assigned early. I bought the spreads on 16NOV2020 for a net debit of 4.0933 per share. With assignment, I automatically purchased 300 shares at 195 each. I exercised my corresponding long puts at 200.
I thus earned 272 in profit on 1,228 in capital at risk. That is a return of about 22%. Over the 30 day holding period, the annualized return is 269%. I now hold only one remaining spread of SWK with an expiry of 18DEC2018. Should the month continue to proceed as expected, I will close 6,274 in profits for December. It is looking increasingly likely. I am also hopeful to roll VXX down for another 1,500 or so in profits.
Devour your prey raptors!