Summarizing Two Roll Outs: IP and KO

Because of some travel I took during the month of September, I missed posting on a couple of the Rescue My IRA positions that were rolled out during the month – Mary and I had an excellent week long trip to Las Vegas and the Grand Canyon.  So here’s a quick summary post on those.  The next post will be my monthly results summary, which I hope to get put up on either Monday or Tuesday of this week.

The two roll outs are IP and KO.

IP:  This is a 200 share position with a basis of just less than $48.  I have been writing covered calls at a $49 strike, collecting dividends.  I’ve had a position in this stock several times and have always done well with it.  At expiration of the current position of $49 Nov, this one will have earned an annualized return of 21.18% - well above my goal of 12% per year. 

KO:  This is a 400 share position with a basis of just over $40.  I have been writing covered calls at a $40 strike, and am collecting dividends.  It’s a “dog of the Dow” this year; even with covered call premiums it is underperforming my goal of 12% per year – it’s currently earning an annual rate of 8.89%. The current contract has a January expiration, I’m just having to wait it out with dead money.