Sunday, September 29, 2013

New Position TXT

With the quick coming and going of that GE weekly, I decided to put the money back to work ASAP with a position on TXT – this is an S&P five-star stock that I held earlier in the year.  The covered call premium on this one added more than $300 to my monthly cash flows – and otherwise the position meets my goals. 

So after unwinding BA earlier in the month, these are all the trading activities I’ve been able to do with the returned capital. It was worth the effort to close that position a few weeks before expiration.

Here is a summary of the TXT position.



Bought 300 shares at average share price $29.30 (total $8,791.00)
Sold 3 TXT Oct 2013 $29.00 for a net of $343.24

Net Profit:

1) Options Income:  = $343.24
2) Dividend Income: ($0.00) – no dividends before October expiration
3) Capital Appreciation if assigned at $29.00:  -$108.11

Total Net Profit if Assigned and dividend collected:  $235.13
Absolute Return on Investment: ($235.13/$8,791.00) = 2.67%
Annualized Return if Assigned (30 days):  2.67%*(365/30) = 32.54%

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