Diversion

Sunday, December 9, 2012

CSCO - Adding Shares and Rolling Up and Out


I added 100 shares to my 400 share CSCO position and then rolled-up and out the covered call I had established.  

Under the current contract, I’ve set up a triple play that rolls out over a six month long investment.  We’ll see how it works out.

Here’s a summary:

CSCO
Added 100 shares and rolled out and up the 19 Feb to 20 Apr
Total Option Premiums:  $308.63
Total Dividends:  $126.00
Total Stock Gain (if assigned at $20):  $450.71
Total Absolute Gain on Position: 11.66%
Absolute Return on Position: 23.64%

So, the position currently has met my annual return goal for Rescue My IRA investments, assuming the contract is assigned in April, even though I will have held the stock for only six months.

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