Psec has fallen from the 6 range down to 525-545 since earnings came out strong but guidance Tepid.
I thought I was committing to sell 20000 puts. 200,000 shares. At $5 so biggest commit is $1 million right? It pays about a 12% div at 6. That would an astronomical 14% or so at 5. And they've paid 80 straight at .06.
Problem is. 20,000 puts isn't 200,000 shares. It's 2 million. Which would leave me on the hook for $10 million of psec. Oooops. I like it but yikes. Not that much. Crap.
So if it stays above 5 for the next month we are all friends and drinks are on me. I'm $300,000 ahead. It goes below 5 ? that cliff san c linked to in Dana isn't far from my house. Looks like a good one to jump off.
This Friday baby. This Friday. PSEC has to stay between 5-6. Ideally just above 5. If it hits 6 I get cashed out but it would drop and I'd buy it all back.
But 5. If it can stay above 5, I win 300K and I promise never never ever to do this again
Well. Exactly this way.
With this much at Stake
With this stock
This month
Oh who am I kidding. This expires and I am looking for the next big kill.