Friday, June 7, 2013
Rolling out IP
As I did a couple of months ago, I established positions with the same stock in both my Rescue My IRA account and my conventional trading account. The stock I chose was IP – it’s one that has served well in Rescue My IRA, since I have traded it four or five times.
My per share basis in both accounts is just less than $48 and I am selling $48 strikes, rolling them monthly. Last week I rolled both out from June contracts to July – here’s the analysis on the positions.
IP – Rescue My IRA position
The IP position consists of 200 shares. My basis is $47.93 per share. I am selling 48 strikes and rolling them monthly; this transaction rolled out June options to July.
Total option premiums: $309.46
Total dividend payments: $60.00
Total stock gain at $48: -$2.11
Total, absolute gain on the position: $367.35
Total, absolute return percentage ($367.35/$9,585.00): 3.83%
Annualized total return percentage (held approx 60 days): 23.31%
IP – Conventional Trading Account Position
This is a 100 share position. My share basis is $47.75, and I am selling $48 strikes – this transaction also rolled out a June contract to July.
Total option premiums: $128.23
Total dividend payments: $30.00
Total stock gain at $48: $7.24
Total, absolute gain on the position: $165.47
Total, absolute return percentage ($165.47/$4,775.65): 3.46%
Annualized total return percentage (held 60 days): 21.08%