I have been working on
finding a couple of new positions, and today I added a second financial to the
portfolio with stock AFL. It didn’t use
all of the investable capital I had on hand, so I added one lot of LNC, the
other stock I added this month – that makes four lots, all with 26 Jan 2013
covered calls written on them. For the
AFL, I sold a 55 Feb 2013; in both cases, the stocks have ex-dividend dates
between now and the options expiration date and I may see early calls.
Here’s the analysis.
AFL
The AFL position I
established today consists of 100 shares.
My basis is around $5,399.00, or $53.99 per share. I sold the 55 Feb strike on the single
lot.
Total option
premiums: $123.74
Total dividend
payments (including the forecast Feb ex-dividend): $35.00
Total stock gain at $55: $83.89
Total, absolute gain
on the position: $242.63
Total, absolute return
percentage ($242.63$5,399.00): 4.49%
Annualized total
return percentage (held approx 60 days):
27.34%
LNC
I also added 100
shares to my LNC position today, which had been 300 shares. The new basis is $10,346.80, or $25.87 per
share. I sold 26 Jan 2013 covered calls
against all of the shares.
Total option
premiums: $258.96
Total dividend
payments (including January ex-date): $48.00
Total stock gain at $60.00: $36.09
Total, absolute gain
on the position: $343.05
Total, absolute return
percentage $343.05/$10,346.80): 4.42%
Annualized total
return percentage (held 30 days): 53.83%
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