Thursday, December 22, 2011

Adding to a Good Thing: IP

The approach evolves as we learn - I guess that's part of the human condition.  I have struggled with whether IP should even be in my portfolio - if I draw the hard line of S&P STARS ratings of 4 or above, IP doesn't fit.  On the other hand, quite a few of my colleagues have done well with the shares, and The Motley Fool even had a positive article on it in the last month or so.

So I added another 100 shares last week at $27.97, so I now hold 300 shares with a price basis of $26.21 per share.

Earlier I had completed a roll-out on the original 200 shares, then sold Jan 27s on them for $338.  I sold a Jan 29 on these new shares, netting $55.  So the current position looks like this (assuming the options are assigned):

Total Option Premiums:  $207.19
Dividends: $52.50
Total Stock Gain (Loss):  $419.75
Total Absolute Return:  $679.44
Total Absolute Return Percentage:  13.42%
Annualized Return (held 105 days):  46.64%

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