Tuesday, August 13, 2013
Rolling Out IP
After rolling out SPY and BA, and then unwinding the COP and WIN positions, the only August contract I had left in Rescue My IRA was IP. Then I rolled out to September – so there won’t be any assignments this month. I’ve also already established replacement positions in TRV and TGT – I’ll post about those later in the week.
Between all of this action, the account has already generated 1% in cash flows for the month – really, I’m just waiting on a few ex-dividend dates now. Maybe a few more adjustments, but most of the contracts I have now are September covered calls.
Here’s the analysis of the IP position – as with WIN, I have it in the IRA and conventional accounts.
IP – Rescue My IRA position
A 200 share position with a basis of $47.93/share, total $9,585.00.
Total option premiums: $501.43
Total dividend payments (including the May and August): $120.00
Total stock gain at $48: -$2.11
Total, absolute gain on the position: $619.32
Total, absolute return percentage ($619.32/$9,585.00): 6.46%
Annualized total return percentage (held approx 120 days): 19.65%
IP – conventional account position
This is a 100 share position with a share basis is $47.76, total $4,775.65.
Total option premiums: $208.96
Total dividend payments (counting ex-dates through the contract term): $60.00
Total stock gain at $48: $7.24
Total, absolute gain on the position: $276.20
Total, absolute return percentage ($276.20/$4,775.65): 5.78%
Annualized total return percentage (held 120 days): 17.59%