This week has been intensive on the dividend front – there were no less than five Rescue My IRA positions that were scheduled to go ex-dividend this week, so I have been monitoring them for early assignment. Yesterday, February 14, I received news that my 400 share MSFT position had been assigned. I’ll have to wait and see on the official date of assignment, since technically if I held the shares yesterday it’s my dividend, but I will go ahead with the assumption that the shares were called away with the intent of the dividend following them to a new owner – after all, at $30.25, they were deep in the money from my 27 Feb 2012 covered call.
No hat trick on MSFT, but here is the record on this position, as usual, net of fees and commissions:
MSFT
Shares:
Shares:
12/30/2012 Bought 400 shares at an average price of $25.99, total position basis $10,395.00
Sold on assignment 400 shares at $10,782.89, average share price $26.96
Total stock gain: $387.89
Options:
12/30/2011 STO 27 Feb 2012 total $147.99
Total options income: $147.99
Dividend:
A dividend of $.20 per share was declared, ex-date of 2/14/2012, but the position was assigned before the dividend was collected.
Net Profit:
1) Stock gains: $387.89
Net Profit:
1) Stock gains: $387.89
2) Options income: $147.99
3) Dividend Income: $0
Total Net Profit after Assignment: $387.89 + $147.99 + $0 = $535.88
Absolute Return on Investment: ($535.88/$10,395.00) = 5.16%
Annualized Return (45 days): 5.16%*(365/45) = 41.81%
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