New Position: F (Rescue My IRA and Conventional)

As I sometimes do, I established positions in the same stock in the Rescue My IRA account and in my traditional account – choosing F, which I have picked before.  Here’s the analysis, or position plan, if you will – all values are net of commissions and fee: 

F – Rescue My IRA position

Transactions

Bought 200 shares for $3,497.00, or $17.49 per share

Sold 2 F Nov 2013 $18.00 for a net of $92.48

Net Profit:

1) Options Income:  = $92.48
2) Dividend Income: October ex-date, $20.00
3) Capital Appreciation if assigned at $18.00:  $85.89

Total Net Profit if Assigned and dividend collected:  $198.37
Absolute Return on Investment: ($198.37/$3,497.00) = 5.67%
Annualized Return if Assigned (45 days):  5.67%*(365/45) = 46.01%

F – Conventional Account position

Transactions

Bought 100 shares for $1,749.99 or $17.50 per share

Sold 1 F Nov 2013 $18.00 for a net of $41.74

Net Profit:

1) Options Income:  = $41.74
2) Dividend Income: Ex-date October, dividend is $0.10 ($10.00)
3) Capital Appreciation if assigned at $18.00:  $32.90

Total Net Profit if Assigned and dividend collected:  $84,64
Absolute Return on Investment: ($84.64/$1,749.99) = 4,84%
Annualized Return if Assigned (45 days):  4.84%*(365/45) = 39.23%