During the downward sloping trading action last week – we are all in a tizzy over Syria, don’t you know – I
rolled out a couple of positions that had September expirations. Today I will post about rolling out the IP
position in the Rescue My IRA account and the smaller position I have in my
stand alone account, and I will post about rolling out TRV later in the week.
As it stands today, I
have only one September contract left, BA 105, which is in the money. I will keep an eye on this one as expiration
approaches next week to see if I can unwind it, and if not, we’ll let it run to
see if it is called away.
Here’s the analysis of
the two positions.
IP
The current Rescue My
IRA IP position consists of 200 shares.
My basis is $47.93 per share, so for most of the holding I’ve had $48
strike prices. I also rolled up when I
made this trade, so my strike is now in-the-money $49; this trade also rolled
out my contracts from September to October.
Total option
premiums: $528.42
Total dividend payments: $120.00
Total stock gain at $49: $197.89
Total, absolute gain
on the position: $846.31
Total, absolute return
percentage ($846.31/$9,585.00): 8.83%
Annualized total
return percentage (held approx 150 days):
21.49%
IP – Conventional Account
This is a 100 share
position I established at about the same time as the one above. The share basis is $47.76 on this position,
and I rolled up to $49 and out to October with this trade as well.
Total option premiums: $221.45
Total dividend
payments: $60.00
Total stock gain at $49: $107.24
Total, absolute gain
on the position: $388.69
Total, absolute return
percentage ($388.69/$4,775.65): 8.14%
Annualized total
return percentage (held 150 days): 19.80%
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