Hi Bob,
So, if I read this correctly you went long KMI later on you sold the CY puts?
I have to take a longer look at CY. I have never owned it but followed it in the past.
You tend to go longer term with the puts than I do and I also spread around my exposure to quite a few securities. I start out at 3 to 4 months sometimes less but will roll them out if they go in the money and I can do it for a reasonable profit. I have always done better with puts and so so with covered calls.
Some of my current shorts:
AGN JAN $200
BA DEC $330
CCI JAN $110
HD JAN $200
HON DEC $150
IONS JAN $50
LMT DEC $310
MCD DEC $170
PH JAN (20) $200
QCOM JAN $62.5
SJM $ OCT $105
WBA JAN $72.50
Some are under water and PH I rolled out further to 2020. Some of the initial put positions in the security were initiated many years ago. Most of them tend to pay an increasing dividend except IONS which is a BIO and pays no div. I initially bought some IONS many years in the single digits and gradually sold it all off.
Other than IONS, I have long established positions in all the other stocks most at substantially lower cost basis.
When I first started to write puts, it was random on stocks that I liked but wasn't something that I would call a program. I tried my first program in which I devote a portion of capital to writing puts. That was just before the great crash. At that point, I was assigned on just about every short put. I could have rolled out of some but the market was in a panic and I was busy. I had funded the putselling versus a portfolio of short term munis that yielded 3%, I still have most of those positions MMM, GWW, UTX LOW, ECL and some that I can't think of offhand.
I started the second program just after the recovery started. Premiums were fat and prices were low. For the most part, I have been able to ride out market declines and since I tend to cross many sectors, some do better than others. Another 2009 and I suspect, I will take a lot of assignments. |
