Diversion

Wednesday, September 11, 2013

Rolling Out TRV

So far, not a whole lot of trades this month in Rescue My IRA.  I rolled out and up my IP position and posted on that, so this post is about rolling out TRV. 

The market has recovered nicely this week after some of the uncertainty about Syria has been resolved.  I think that is temporary, but hopefully it will work out for the longer term soon enough.

Here’s the analysis of my TRV position.

TRV

This is a 100 share position with a basis of $82.11 per share – the lot of 100 shares cost me $8,210.99.  I established the position in August, selling a Sep $82.50 call, and this trade rolled that out to October.

Total option premiums:  $205.23
Total dividend payments:  $50.00
Total stock gain at $82.50:  $21.90
Total, absolute gain on the position:  $277.13
Total, absolute return percentage ($277.13/$8,210.99):  3.38%

Annualized total return percentage (held approx 65 days):  18.95%

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