Tuesday, December 20, 2011

CMCSA Called Away

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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