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%
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