Friday, December 16, 2011
Closing out the Stinking AA Position
One more piece of advice: you don't have to wear the funny hat, no matter how nicely they ask. Bush (more likely Cheney) fired him shortly after this photo was published.
Also, the stock is underperforming, even for a Dogs of the Dow candidate, and it has a miniscule yield. I've learned my lesson about choosing positions for the Rescue My IRA portfolio just because I wanted to have 90% of the funds invested. Today I bought back the previous options and sold the shares at a loss. We'll chalk it up to experience.
Here are the results:
Total Option Premiums: $127.96
Total Stock Gain (Loss): ($609.00)
Total Absolute Return: ($481.04)
Total Absolute Return Percentage: -11.7%
Annualized Return (held 75 days): -57%
This is why I use the portfolio approach. Sometimes you're just going to have a stinker in there.