Sunday, July 21, 2013

Called Away on TXT

I opened the TXT position last month, after unwinding my GE position.  The positioning opening post is here:  http://rescuemyira.blogspot.com/2013/06/new-positions-txt-and-win.html

It’s unusual for the Rescue My IRA account to have a position that works out with so little management effort.  I don’t take any credit for my good fortune on this one, it’s just that the market is taking care of us right now.  How long it holds we just can’t say.

Here’s the analysis.



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%

No comments:

Post a Comment