For only the second time now, I had one of my covered calls assigned. This time it was CMCSA, which was one of the 220 share positions I set up in early November. My basis in the shares was $21.99, and I did two covered call transactions with them at a 22 strike while I held the shares. I was not emotionally tied to the stock for several reasons, mostly because I consider the business of DIS similar enough that I have had second thoughts about also holding CMCSA.
In looking through the record on this one, I see that I was able to trade in and out during November before selling the December 22. Here is a summary of results on the trade:
Total Option Premiums: $173.48
Dividends: $0.00 (next ex-date is 12/31)
Total Stock Gain (Loss): ($16.98) - this loss is mainly due to the assignment transaction fee of $18
Total Absolute Return: $156.50
Total Absolute Return Percentage: 3.56%
Annualized Return (held 45 days): 28.86%
After last week's sale of AA, the return of these funds to my investment pool means that I have some cash I need to put into shares. The next post will review how I've made my decision to invest the excess.
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