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Two trades this week.

music selection:  “Drive” — The Cars

weigh-in:  193.8 n/c

I like the chart on DELL.  It is in a steady uptrend with only very minor pull backs along the way.  I’m capturing the upside in the chart with a bull call spread.  With shares trading at 56.02, I bought the 50/55 strikes bull call spread (13 spreads) for 3.6969 per share.  The trade has 4.15% downside protection on 4,806 in capital at risk over 40 days.  Should shares finish above the high strike, the full profit of 1,694 will be earned which is good for 35.2% or 322% annualized.

QYLD is a covered call fund that focuses on the NASDAQ 100.  It has a long term stable price for the underlying and usually yields over 10% with a monthly payout.  I am buying a half position so I can strangle it with short puts and calls, playing both ends against the middle for more yield.  I purchased 200 shares for 22.89 and sold two puts at 22 and two calls at 23 for net credit of 49 cents a share.  I used the February expiry and the trade will be in force for 103 days.  If the underlying stays between my strikes, I will earn an additional 7.6% annualized for my trouble.  On top of the 10.33% underlying yield that is a very tasty return.

All four of my bull spreads for November are in the money.  Expected short term capital gains for the month are now 10,047.

Devour your prey raptors!