This week’s trade is in Welltower (WELL).
music selection: “Shake Your Body (Down To The Ground)” — The Jacksons
weigh-in: 201.0 (2.4)
First my closed trades. Third Friday expiry was over the weekend. I booked 1,544 in profit on a MSFT bull call spread over 39 days. That yielded 62.9% or 588% annualized. A bull spread in LSI returned 825 dollars or 17.6% over 26 days which was good for 248% annualized. A long put in AMC expired worthless for a loss of 1,030. INVH was assigned over the weekend at a strike of 35 (4,100 shares). I unloaded them this morning for 36.96, booking 3,156 in profit. That was good for 64.7% over 21 days or 1,124% annualized.
With WELL trading at 79.15, I bought the 77.5/80 strikes bull call spread with 16JUL2021 expiry for 1.40 a share (35 contracts). I have 4,900 in capital at risk over 26 days. If expiry were today, the stock would close between the strikes and be worth an estimated 875 in profit. That is, I have 0.32% downside protection. Should the stock rise by 1.07% or more by expiry, full profit will be realized. That would be 3,850 or 78.6%, which annualizes to 1,103%.
Devour your prey raptors!