Prices current-ish sometime around 11:00 AM, 8/2/2024.

Did anyone else get assigned on AG puts? We sure did!

But because we don’t sell puts on stocks we don’t want to own in the first place, it’s not even an issue. Did we expect draw down to $5.30/share? No, but it hardly matters.

The real trick here now is to not get greedy and to continue to write calls at the $7 strike we wrote the original puts. Sometimes you have to settle for $1 premium (before commission).

In other Wheel news, SNDL is behaving as anticipated.

When it comes to weekly options, if we can make a 1% profit per week, that’s still a 52% annual return. So really, even if you have to settle for 0.5% or even 0.25%, you’re still beating the S&P.

1. PFLT - $10.93/share, 10.99% yield, monthly distributions, ex-div 8/15 (subject to change, as this has not yet been announced).
   
   We’ve been in on PFLT long before understanding BDCs.
   
   Over the weeks, we oscillate between over-picking this security and ignoring it altogether. The one thing we don’t do is sell.
   
   
   
   

2. AG - $5.06/share, 0.3% yield, quarterly distributions, ex-div 8/16. Options trade weekly.
   
   We can’t not buy this dip. Except it’s probably not a dip, and more of “the price” for the near-term. That’s okay.
   
   Double our holdings, you say? NO. That’s dumb. ….that’s not to say that doubling our shares would be bad in and of itself, but those dollars can be more productive elsewhere.
   
   
   
   

3. SNDL - $2.02/share, weekly options. We aren’t fans of weed stocks, but this company seems to be hanging on and making it work. More importantly, strike and share price are lined up. Great for a Wheel position. (Sell put/roll/get assigned/sell call/roll/get assigned/repeat).
   
   Speaking of weed, we here at Rockydennis Presents have noticed some significantly steep discounts in dispensary prices. At that same time, we see Michigan Gems and Genetics reports that a large swath of dispensaries are closing up shop as customers go back to private caretaker service.
   
   Our conspiracy theory is that the dispensaries that are still operating want to move as much inventory as possible. Marijuana has razor-thin profit margins, and lost or destroyed product can devastate the bottom line.
   
   
   

4. NOK - $3.88/share, 3.54% yield, quarterly distributions. Weekly options. These are ADRs for Nokia. It’s the most European-style stock there is. The price will move up sometimes, but it doesn’t typically venture far from the $4 mark.
   
   Rolling calls is probably going to yield >1%/week, but that’s what you get with a predictable price.
   
   
   

5. NU - $10.90/share, weekly options. We bought in on the IPO at $9. This might be our only IPO purchase that has appreciated in value.
   
   After buying more shares, we checked the ‘company profile’ on Fidelity. Here’s the first line,
   
   Nu Holdings Ltd. provides digital banking platform in Brazil, Mexico, Colombia, Cayman Islands, Germany, Argentina, the United States, and Uruguay.
   
   Good enough!