I sold half my ABB calls.
music selection: “Bleed” — Soulfly
On 4NOV2020, I bought 4 deep in the money calls on ABB with expiry of 20JAN2023. I chose the 15 strike and got pricing of 11.05 a share. With shares appreciating, I decided to trim the position by half as a matter of reducing exposure in a frothy market. I sold 2 contracts for 13.00 a share, raising 2,600 in cash. Profit is 390 dollars over 56 days against 2,210 at risk or 18%. That comes out to 115% annualized.
I hope to raise additional cash by selling my OXY, PBFX, and FLR bonds at par over the next several days. Also, I have a long suffering long dated put in VXX with the 13 strike that is approaching the money. If I can close that for break even, I’ll raise another 14,000.
Devour your prey raptors!