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.
SPY
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%
BA
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%
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