Called Away on HAL, LNC, and SWK

When I checked on the deltas for my February expiring contracts last week, it looked likely that my positions in SWK, LNC, and HAL would be called away, while the CSCO position was less likely.  As the month played out, that is more or less what happened – I took advantage of a down market Thursday and closed the CSCO Feb 21, rolling out to an Apr 21, at a profit of just over $200.  Meanwhile the other positions were called away.

All three of the assigned positions ended up as hat tricks – meaning I collected call premiums, dividends, and stock gains from them.  On HAL, I didn’t quite earn the annualized return of 12% that I have set as a goal, but I did much better than that on the LNC position after only holding it for about 60 days, and then SWK also delivered.  Now I will begin the process of investing the proceeds from these three – about $27K in capital ready to go back to market.

In the case of HAL, the stock continues to have a 3-star rating from S&P – I have decided to upgrade my portfolio to include only 4- and 5-star stocks.  During February I culled two of those positions between HAL and WAG, there aren’t many left but I will continue to work on this going forward.

Here’s the analysis of the three positions:

HAL

Position basis:  300 Shares, basis $10,299.90, or $34.33 per share; Feb 35 assigned.

Option Premiums:  $643.08

Dividends Collected:  $81.00

Stock Gain:  $182.92

Total:  $907.00

Absolute return 8.81%

Annualized return (300 days) 10.71%

LNC

Position basis:  400 Shares, basis $10,346.80, or $25.87per share; Feb 26 assigned.

Option Premiums:  $398.93

Dividends Collected:  $48.00

Stock Gain:  $36.09

Total:  $483.02

Absolute return 6.23%

Annualized return (60 days) 37.90%

SWK

Position basis:  100 Shares, basis $7,291.50, $or $72.92 per share; Feb 75 assigned.

Option Premiums:  $679.20

Dividends Collected:  $139.00

Stock Gain:  $191.32

Total:  $1,009.52

Absolute return 13.85%

Annualized return (300 days) 16.84%