Today’s post concludes
the one I started yesterday concerning some recent roll-out positions. I covered the GE, HAL, and WAG shares
yesterday so today will be about ITW, NOC and SPLS.
As I mentioned
yesterday, the proceeds from these six roll-outs were enough to add another lot
to my CSX position. I will add a post on
that one next week.
And of course, there
are still three weeks left to June – I’m sure I’ll have a few more trades to
report by the end of the month.
Here’s the analysis of
the three positions.
ITW
The ITW position
consists of 200 shares. My basis is
around $56 per share, and the stock is trading near there. I am selling 57.50 strikes and rolling them
monthly.
Total option
premiums: $554.45
Total dividend
payments (including the forecast June ex-dividend): $144.00
Total stock gain at $57.50: $208.89
Total, absolute gain
on the position: $907.34
Total, absolute return
percentage ($907.34/$11,274.00): 8.05%
Annualized total
return percentage (held approx 150 days):
19.58%
NOC
This 200 share
position has held its own in the current market. I was satisfied with the results of my
initial analysis, but had a few reservations about making a choice in the
defense sector. Live and learn.
Total option
premiums: $589.79
Total dividend
payments (counting May ex-date): $210.00
Total stock gain at $60.00: -$3.36
Total, absolute gain
on the position: $796.35
Total, absolute return
percentage ($796.35/$11,986.25): 6.64%
Annualized total
return percentage (held 120 days): 20.21%
SPLS
I have a 500 share
position in SPLS. It has a four-star
rating with S&P, so I thought it was a good opportunity back in February or
so when I bought it, and I don’t mind owning it now. It’s just that I can’t profitably write 17
strikes anymore. So I’ve decided to
compromise that objective and write in-the-money calls against the position
while the stock is moving down. This
most recent trade is a 13 July; there is an ex-dividend date coming up in June,
so there is a chance of an early call also.
I’ll take a loss if
that happens. But it will also give me
$6,500 in cash to go bargain shopping with…
Total option
premiums: $425.11
Total dividend
payments (counting June ex-date): $105.00
Total stock loss at $13.00: -$1,488.60
Total, absolute gain
on the position: -$958.49
Total, absolute return
percentage -$958.49/$7,971.42):
Negative
Annualized total
return percentage (held 240 days): Negative
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