Friday, December 5, 2014

Trading Summary: crappy food, overpriced coffee, and a brokerage

Today: Closed 3 positions.  YUM Brands, Starbucks, and Interactive Brokers.

Here's the brick:



CLOSED: IBRK - Interactive Brokers
1 contract Jan $27 Puts (naked puts)
Position open:20-novPosition closed: 5-dec
Position open:  15 days
Maximum Premium : $89.61
Maximum loss: $2610.39 (2700-89.61)  (if the stock went to ZERO)
Closed @ 49% capture ($44.27)
Yield on risked capital: 1.7%
Representing an annualized yield of 40%

Full disclosure: this is my brokerage: I highly doubt they would be ZERO by January...  Entirely unlikely.  Thus the max loss is theoretical only.  And yes, for those of you who see that "Comm" item of $0.34, that's how much my commission was to trade this.  Sure beats EVERY OTHER brokerage in Canada.  This move would have cost me $11.24 ($9.99+1.25) at my old brokerage.

CLOSED: SBUX - Starbucks Coffee
5 contracts April $70/67.50 Bull put spread
Position open:31-octPosition closed: 5-dec
Position open:  36 days
Maximum Premium : $235
Maximum loss: $1015 (1250-235) 
Closed @ 64% capture ($155.40)
Yield on risked capital: 15%
Representing an annualized yield of 158%

Huge positives for Starbucks. Time to take my money, and buy a coffee.



CLOSED: YUM - Yum Brand Foods
5 contracts April $65/62.50 Bull put spread
Position open:25-aug
Position closed: 5-dec
Position open:  103 days
Maximum Premium : $265
Maximum loss: $985 (1250-265) 
Closed @ 64% capture ($169.59)
Yield on risked capital: 17%
Representing an annualized yield of 62%

Yum has recovered from it's "floor chicken" fiasco.  It's got it's mojo back, so it's time for me to exit my position and re-deploy into something else.

Stay HUNGRY my friends.

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