New April CC Positions: MSFT and HAL

With a little money available after the March assignments, I went to work on finding some new positions.  I ended up with a 300 share position of MSFT, back to the well with that one after a February contract, and then I opened up a 200 share position on HAL.  Neither of these are dividend plays – they are simply steady options premium cash flow opportunities. 

They also helped me improve the monthly performance on the Rescue My IRA account.  My goal is one percent per month, and the current status is 0.87%, just shy of the goal.  There are a few things I could try here to make numbers, but I am not going to compromise any of my positions for that.  We’ll just watch and wait. 

Here are the details of the new MSFT and HAL positions:

MSFT (4-12 Position)

3/20/2012 Bought 300 shares at a total of $9,753.43

3/20/2012 Sold 3 MSFT Apr 2012 33 at a total of $136.24

Net Profit:

1) Options Income:  = $136.24
2) Dividend Income: $0.00
3) Capital Appreciation if assigned at $33.00:  $129.46

Total Net Profit if Assigned and dividend collected:  $136.24 + $0 + $129.46 = $265.70
Absolute Return on Investment: ($265.70/$9,753.43) = 2.72%
Annualized Return if Assigned (30 days):  2.72%*(365/60) = 33.14%
Yesterday, the date of purchase, MSFT’s closing price was out of the money (OTM).

HAL

3/20/2012 Bought 200 shares at average share price $34.69 (total $6,938.30)

3/20/2012 Sold 2 HAL Apr 2012 35  at $198.49 (total $198.49)

Net Profit:

1) Options Income:  = $198.49
2) Dividend Income: $0.00
3) Capital Appreciation if assigned at $35.00:  $44.52

Total Net Profit if Assigned:  $198.49 + $0 + $44.52 = $243.01
Absolute Return on Investment: ($243.01/$6,938.30) = 3.50%
Annualized Return if Assigned (30 days):  3.50%*(365/30) = 42.61%
Yesterday, the date of purchase, HAL's closing price was out of the money (OTM).