During the rally last
week I took advantage of the action to roll-out a few of my positions, and I
also rolled a couple up to higher strike prices. As a result, I no longer have any covered
call positions with a January expiration, including the LNC position I
established with an eye for an early call on the ex-dividend date of January 8.
I had rolled the $26
covered call on LNC from January to February to collect a little more call
premium revenue. The position has been
in the money the whole time I’ve held it, rising to more than $27 by yesterday –
with a $0.12 per share dividend in the offing, I thought an early call was a pretty
sure thing. But you never know, and the
shares were still in my account this morning, January 9.
So here are the
results of the roll-out. I will have a
few more posts up about the rest of the action in a few days.
LNC
The LNC position
consists of 400 shares. My basis is $25.87
per share, and the stock is trading north of $27. I sold a $26 strike and have rolled it out
once.
Total option
premiums: $398.93
Total dividend
payments (including yesterday’s ex-dividend):
$48.00
Total stock gain at $26.00: $36.09
Total, absolute gain
on the position: $483.02
Total, absolute return
percentage ($483.02/$10,346.80): 6.23%
Annualized total
return percentage (held approx 60 days):
37.90%
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