Wednesday, August 17, 2011

Cash Conversion Market

I'm continuing with the selling theme.

Trades:

I sold my September LVS calls, +41.6%. There were options to do a spread conversion, potentially for more gain, or to sell calls at my cost and freeroll for the profit with a deep ITM spread, or even take some of the profit and leave a deep ITM $2 or $3 spread. I opted to take the money and run.

I sold my October NLY calls, +2.9%. Given the 14.25% dividend, NLY trades rather flat anyway.

That leave my options account 2/3 in cash, and my main brokerage account 50% in cash. That and other accounts are loaded up with high yield REITs NLY and ARR (19.1% dividend, paid monthly).

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