I decided to buy back the 29 Dec 2011 calls I had on my IP position. I saw the transaction as an opportunity to get back into a credit position on my call premiums, which I was able to do by selling the 27 Jan 2012 - my basis on the shares is $25.32.
I collected $339 for the new call contract. If called at $37 in January, the total returns onmy 200 share position will be as follows:
Option premiums: $152.45
Dividends: $52.50
Stock gain: $317.45
Total return: $552.47
The price basis on this position is $5,064, so we have an absolute return of 10.32% and an annualized return of almost 36%. Will keep you posted.
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