Multiple trades this week.

music selection:  “Train, Train” — Blackfoot

weigh-in:  “Train, Train” — Blackfoot

A covered call in FLO expired out of the money over the weekend.  I originally bought FLO for 22.40 a share on 19FEB2021 (400 shares).  I sold this morning for 23.70.  The gain was 5.83% or 522 dollars over 31 days which is good for 69% annualized.  This was done to raise cash for better yielding investments as I seek to build out a portfolio that covers my budget passively while still allowing for trading spreads around the periphery.

Fourteen hundred shares of PSEC were called away over the weekend at 7 dollars.  I originally purchased PSEC at 6.65 on 28MAR2018.  My gain was 490 dollars over 1,089 days, good for 2% annualized.  I collected near 9% annually in the underlying distribution plus some covered call premium along the way.  It was a good stable income investment.  I decided to re-enter the trade at the 8 strike.  I sold 13 puts with the 16APR2021 expiry for 45 cents apiece.  The trade will be in force for 26 days and yields 78.97% annualized.  These puts are in the money and almost certain to be assigned.  I will write covered calls for income while I collect the underlying distribution.

Finally, I opened a bear put spread in West Pharmaceutical Services (WST) on the 16APR2021 expiry and the 300/310 strikes.  The underlying was trading at 280.55 at the time, providing downside protection of 6.93% before profits are threatened.  WST is a Dividend Aristocrat with 28 consecutive years of dividend increases.  It has a 20 billion market cap and a Beta below 1, making it a good candidate for an in the money spread.  The chart has been consolidating with sideways movement year to date and I like my chances.  The trade will be in force about 26 days and should downside protection not be breached, I will earn 460 dollars on 4,540 capital at risk.  That is good for a 10.1% return or 142% annualized.

March is currently shaping up to see a little over 9,000 in closed trading profits.  June is coming in even better with three spreads in the money.  May is a wildcard that I won’t know how is going to shake out until I populate it with trades over the coming weeks.

Devour your prey raptors!

Monday trades with yields up to 142%

Never miss another opportunity to devour prey!

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