Five (!) New Positions: HAS, HRS, IP, SPLS, TGT

Following the January expirations, I had a lot of cash on hand.  Some might make an argument that it would be okay to sit on it, but it is my preference to have it working for me as much of the time as possible.  So I had already begun keeping an eye out for some new positions, and I even decided to go back to the well on IP.

I’ve added five replacement positions this week, mostly with February expirations…I’m going to be busy this month!   Here they are:

SPLS, 500 shares at average price of $15.94 each, total $7,971.42:

·         I sold five 17 Mar 2012 contracts for $136.74.

·         There is no dividend opportunity during this trading period.

·         At $17.00 per share, the net stock gain exceeds $500 on this trade.

·         If assigned, I will realize a net gain of 8.13%, annualized to 49.46%.

TGT, 100 shares at $50.50, total $5,049.79:

·         I sold one 52.50 Feb 2012 contracts for $56.74.

·         There is a dividend opportunity of $30 during this trading period.

·         At $52.50 per share, the net stock gain is about $180 on this trade.

·         If assigned and dividend collected, I will realize a net gain of 5.34%, annualized to 65.00%.

HRS, 200 shares at $39.67, total $7,933.50:

·         I sold two 40 Feb 2012 contracts for $150.49.

·         There is no dividend opportunity prior to the option expiration, although the ex-date is later in February.

·         At $40.00 per share, the net stock gain is about $49 on this trade.

·         If assigned (I sold the contract with that goal), I will realize a net gain of 2.52%, annualized to 30.64%.

HAS, 200 shares at $33.71, total $6,742.98:

·         I sold two 35 Feb 2012 contracts for $60.49.

·         There is a dividend opportunity of $60 during this trading period.

·         At $35.00 per share, the net stock gain is about $240 on this trade.

·         If assigned and dividend collected, I will realize a net gain of 5.34%, annualized to 65.00%.

IP, 200 shares at $31.47, total $6,294.50:

·         I sold two 32 Feb 2012 contracts for $104.49.

·         There is a dividend opportunity of $52.50 during this trading period.

·         At $32.00 per share, the net stock gain is about $88 on this trade.

·         If assigned and dividend collected, I will realize a net gain of 3.90%, annualized to 47.42%.