Wednesday, August 7, 2013
Rolling out SPY and BA
As far as trading activities in Rescue My IRA go, this month hasn’t been a busy one. That pace may pick up, as there are still four positions with August covered calls, but to date the trades have consisted of a couple of roll-outs.
On SPY, the S&P 500 index ETF, I’ve done a couple of weekly covered calls, and in the last transaction, I changed to an August monthly. For BA, with the ex-dividend date approaching yesterday, I saw an opportunity to roll-out and secure the dividend payment while adding another percentage point in the absolute return on the shares.
Here’s the analysis of the two positions.
The SPY position consists of 100 shares with a basis of $168.46. I’ve sold weeklies at $168.50 and $169, and this most recent transaction was the Aug $169.
Total option premiums: $263.97
Total dividend payments: $0.00
Total stock gain at $169: $20.21
Total, absolute gain on the position: $284.18
Total, absolute return percentage ($284.18/$16,846.00): 1.69%
Annualized total return percentage (held approx 30 days): 20.53%
This is a 100 share position I established in June with a basis of $103.17.
Total option premiums: $389.23
Total dividend payments: $48.50
Total stock gain at $105.00: $165.89
Total, absolute gain on the position: $603.62
Total, absolute return percentage ($603.62/10,317.00): 5.85%
Annualized total return percentage (held 90 days): 23.73%