I’m behind on posting,
so I’m planning on writing up three trades I did over the last ten days or
so. This one is a roll-out on CSX – a staple
of the Rescue My IRA portfolio; tomorrow, I will post about an early call on
VIAB; and then I will post about an add-on to the DOW position and an
adjustment to a lower strike price.
I first bought shares
of CSX back in November of last year, which makes the position my longest held
in the account. This latest roll-out has
the 500 share position in Oct 22.50 calls.
With dividends, call premiums, and the predicted stock gain, not only is
this a hat trick – it has been for a long time now – but also it has earned an
absolute return of 16.57% since I established it last year.
Here’s the analysis:
CSX
Basis: 500 shares costing $10,861.01, average share
price $21.72
Total option
premiums: $1,230.38
Total dividend
payments: $198.00
Total stock gain at $22.50: $370.99
Total, absolute gain
on the position: $1,799.37
Total, absolute return
percentage $1,799.37/$10,861.01): 16.57%
Annualized total
return percentage (held approx 330 days):
18.32%
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