GDXJ Covered Call With Yield Up To 103.05%

I was assigned GDXJ over the weekend.

music selection:  “Jumpdafuckup” — Soulfly

weigh-in:  215.0 +1.8 – gym still closed due to COVID-19

I was assigned 200 shares of GDXJ over the weekend at 46 per share. The share price had a nice little rally this morning and is back over 46. So I wrote covered calls at the 47 strike to try to capture some upside while earning a nice cash return. I sold GDXJ200717C00047000 for 2.45 a share. The trade will be in force for 26 days and yields an expected 73.18% annualized. Should shares be called away, I will earn an additional 1.00 in capital gains making the annualized return 103.05%.

I’m looking at a few other short puts but don’t want to become overexposed. I have a margin loan thanks to the earlier assignment of NLY. That is likely to be called away on Friday which will allow me to extinguish the margin loan and write additional puts next Monday.

Devour your prey raptors!

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