New Trades With Yields Between 7.9 And 61.95%

Monday was a market holiday.

music selection:  “One More Try” — George Micheal

weigh-in:  200.0 +0.4

Shares of Macquarie (MIC) were called away over the weekend generating short term capital gains of 202 dollars. I will include this income in my options income report with my monthly Transparency post.

First up is ON Networks (ON). A cash secured put expired out of the money over the weekend and I am writing a new put to generate more income. I sold ON190315P00022000 for 55 cents a share. The trade will be in force for 25 days and yields an expected 36.50% while enjoying 6.62% downside protection against a decline in share price. This has been a good play for me and I expect to keep visiting it as long as the company’s fundamentals do not dramatically change.

I re-entered Macquarie with a new buy/write. I bought shares at 43.60 and sold MIC190315C00045000 for 45 cents a share. The trade will be in force for 25 days and yields an expected 15.07% annualized. In the event shares are called away, I will earn an additional 1.40 in short term capital gains.  This would boost the return to 61.95% annualized. If shares are not called away, there is a chance of earning the underlying 4.00 annual distribution worth an additional 9.16% annually against my cost basis.

A covered call in Dolby (DLB) expired worthless over the weekend. I made good money and am going to well again for a new covered call. I sold DLB190315C00065000 for 1.30 a share. The trade will be in force for 25 days and yields an expected 29.25% on an annualized basis. If shares are called away, I will earn an additional 12 cents per share in short term capital gains. This will boost my return to 31.95%. If shares are retained, the underlying distribution is worth 1.18% of return.

The short leg of my diagonal call in Microsoft (MSFT) expired out of the money over the weekend. I sold a new short call today, MSFT190329C00115000, for 48 cents a share. The trade will be in force for 39 days and has an expected annualized return against my cost basis in the long call of 7.90%.  Total return on the long call was 169 dollars or 2.97% as of Friday’s close. I hope to continue earning modest income while collecting additional capital gains over time.

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