New Positions: TXT and WIN

After unwinding the GE position earlier in the month, I sought to put the proceeds back to work quickly, with the goal of earning at least $35 in the new position.  I ended up establishing that position in TXT, but I did not invest the entire proceeds at that time – the remainder actually went into a second position in WIN. 

While we have seen a little market chop here recently, both of these positions are S&P 5-star choices.  I am happy to hold them for the long-term if necessary, but we’ll see how that goes. In fact, I rolled the original June position out already to July on the TXT shares, and my opening contract on WIN is August.  

In the meantime, here’s the analysis: 

TXT

Transactions

6/13/2013 Bought 300 shares at average share price $27.08 (total $8,131.00)
6/13/2013 Sold then rolled out 3 TXT June 2013 $27.00 for a net of $318.62

Net Profit:

1) Options Income:  = $318.62
2) Dividend Income: Ex-date was June 12, dividend is $0.02 ($6.00)
3) Capital Appreciation if assigned at $27.00:  -$48.11

Total Net Profit if Assigned and dividend collected:  $276.51
Absolute Return on Investment: ($276.51/$8,131.00) = 3.40%
Annualized Return if Assigned (50 days):  3.40%*(365/50) = 24.83%

WIN

Transactions

6/21/2013 Bought 500 shares at average share price $7.92 (total $3,962.00)
6/24/2013 Sold 5 WIN Aug 2013 8 at $0.23 (total $101.74)

Net Profit:

1) Options Income:  = $101.74
2) Dividend Income: Ex-date is 6/26, $126.00
3) Capital Appreciation if assigned at $8:  $20.89

Total Net Profit if Assigned and dividend collected:  $247.63
Absolute Return on Investment: ($247.63/$3,962.00) = 6.25%
Annualized Return if Assigned (60 days):  6.25*(365/60) = 38.02%