I have one final
transaction to post on from my recent trades – this time, a roll-out and
roll-up on 100 shares of ITW. I'm thinking this will be the last transaction of the month - all that is left to do is watch and wait until the February expiration date, or watch for early calls on some of the contracts.
Regular
readers may recall that ITW became something of a special situation in the
Rescue My IRA portfolio in December, when 100 shares of the original 200 share
position were called on the ex-dividend date at a strike price of $60. The post on that one is here:
Since the remaining
100 shares were not called in December, I rolled-out to a January option, and
now have bumped up to a March $62.50, which I was able to do with a slight gain
in premium. My intention is to let these
shares be called away if they are in the money in March.
Here’s the analysis
through the most recent trade:
ITW
The ITW position was
established with 200 shares, and is currently 100 shares after a partial early
assignment in December. My basis on the
shares is $56.37 per share, and the stock is currently trading near $64. I have sold covered calls at strikes ranging
from $57.50 to $62.50 during the course of this position.
Total option
premiums: $475.37
Total dividend
payments (estimated through the current contract): $262.00
Total stock gain at $62.50: $941.78 (includes the gain already recorded
on 100 shares)
Total, absolute gain
on the position: $1,679.15
Total, absolute return
percentage ($1,679.15/$11,274.00): 14.89%
Annualized total
return percentage (held approx 390 days):
13.94%
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