A day late in reporting trades.
music selection: “You Want It All” — Go Betty Go
weigh-in: 207.4 (0.8) – back moving in the right direction.
First the bad news. BYND got a double upgrade and popped. My bearish trade ended up pretty far underwater and I decided to close early for a loss. I booked a 2,520 loss on 4,788 capital at risk or 52.6% loss. All the other positions that closed over the weekend were to the green. Unfortunately, I’m looking a net loss for the month of May.
I sold covered calls against my WFC position with an expected annualized return of 42.08%. I was unable to initiate short puts against NLY or PSEC at an attractive premium. Finally, I opened a bull call spread in Life storage (LSI). With shares trading at 96.99, I bought the 90/95 strikes spread with 18JUN2021 expiry for 4.25 a share (11 spreads). I have 4,675 of capital at risk in the trade over 26 days. The trade enjoys 2.60% downside protection. Should that not be breached, the spread will earn 825 dollars or 17.6%, which comes to 248% annualized. With a chart that is in a strong uptrend, I think that is highly likely.
Devour your prey raptors!