GLW and CSX
are two positions that I have held since the start of the Rescue My IRA account
– I have 700 and 500 shares in them respectively. Last week I rolled them out to May 2013. These transactions did result in their
staying on target for my 12% annualized return, although extending so far into
the back months does mean I am probably at the end of the run for them, so I
would like to see them hit the strike price as these covered calls hit
expiration.
Here’s a
summary of the positions as of these most recent trades:
GLW
The most
recent roll-out to 13 May 2013 covered calls is the tenth contract I have
written on these shares. In looking over
the history of these transactions, I have also written covered calls at the 12
and 14 strike. It would be good to get
14 for the shares, but for now I am holding with a strike price of 13.
Rolled out
the 13 Feb to 13 May
Basis of 700 share position: $9,241.88, or $13.20 per share
Total Option Premiums: $1,451.59
Total Dividends: $276.00
Total Stock Gain (if assigned): -$159.88
Total Absolute Gain on Position:
$1,567.71
Absolute Return on Position: 16.96%
On an annualized basis, after holding
these shares for 510 days, the return works out to 12.14%
CSX
This is a
500 share position that epitomizes what I am trying to do with this
account. I want to earn returns from
option premiums, dividends, and stock price gains. I’ve been able to do that quite frequently
with short-term trades, but here is one I have held for 510 days, since the
beginning of the account. And the shares
continue to perform for me.
Rolled out
the 22.50 Feb to 22.50 May
Basis of 500 share position: $10,861.01, or $21.72 per share
Total Option Premiums: $1,479.74
Total Dividends: $338.00
Total Stock Gain (if assigned): $370.99
Total Absolute Gain on Position: $2,188.73
Absolute Return on Position: 20.15%
Annualized Return on Position (held 510
days): 14.42%
I’ll
continue to manage this one, but I do wish that they would all work out as well
as CSX has.
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