Weekly Trades With Yields Up To 1,641%

Finally, I opened a bear put spread in Interpublic Group (IPG). This is an old line advertising agency that is taking it on the chin. They engage in traditional advertising and have failed to adapt to the internet. It is too late to try to catch up with the big players in online advertising, their moat is too wide. I expect the company to continue a slow decline. I am thus buying an in the money bear put spread to profit. I sold IPG190920P00021000 for 1.5866 per share while simultaneously buying, with a combo order, IPG190920P00022000 for 2.4477. The net debit is 0.8612 per share and the spread will be in force for about 54 days. So long as the shares do not rise more than 5.32% over the next 54 days the spread will be worth 1.00 per share at expiry. That is a 16.12% return or 109% annualized. The most I can lose is 2,670 (coincidentally same position size as above – not a typo). Whereas, I will likely profit 430 dollars in the 54 day period.

I continue to write covered calls on my existing long positions in an attempt to exit gracefully while raising cash to deploy in distressed bonds when the cycle turns. In the meantime, I will position myself in fixed income and market neutral options trades to keep earning income while I wait for an inevitable crash.

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