Closing out the
activities for the month in Rescue My IRA, I have three adjustments to post
on. As I have in the past, I will do the
monthly update as of last Friday’s market close – I’ll put that post up
tomorrow morning; then I have a couple of trades I did in the conventional
account that will be the topic of a post early next week.
The adjustments in
Rescue My IRA consisted of roll-outs of November contracts for CAT, INTC, and
IP. For CAT, since there is an
ex-dividend date in either December or January (last year they moved it up for
tax purposes), I rolled out to January, but for the other positions I just
rolled a month into November. This still
leaves me with three contracts in November, which also should be a good month
for dividends, but I’ll leave that for the next post.
In the meantime, here’s
the analysis of the three adjusted positions.
CAT
This company reported
earnings this week, and while it has been dragging along most of the year, the
stock price took a significant hit. I took advantage of the dip to roll out and
roll up the current contract from an $87.50 strike to a $90 strike. If I am assigned on this contract the
performance will average out to slightly below my goal of a 12% annualized
return; this one is forecast at 11.38%, which is close, and I can live with
that.
The CAR position is
100 shares, established at a basis of $87.17 in August 2012.
Total option
premiums: $784.39
Total dividend payments
(including the forecast ex-dividend for Dec/Jan): $336.00
Total stock gain at $90: $265.83
Total, absolute gain
on the position: $1,386.22
Total, absolute return
percentage ($1,386.22/$8,716.99): 15.90%
Annualized total
return percentage (held approx 510 days):
11.38%
INTC
This is a 400 share
position I established earlier in October, basis is $9,471.00 or $23.68 per
share. I rolled the $24 strike from November to December with this trade. The
stock is close to the money, so it could be called away on the November 5
ex-dividend date.
Total option premiums: $167.96
Total dividend
payments (counting November ex-date): $90.00
Total stock gain at $24: $111.89
Total, absolute gain
on the position: $369.85
Total, absolute return
percentage ($369.85/$9,471.00): 3.91%
Annualized total
return percentage (held 60 days): 23.76%
IP
I opened the current
IP position back in May, after discovering that S&P had promoted it to a
4-star rated stock – I’ve held past positions when it was 3-star stock and have
done well with it. This is a 200 share
position I established with a basis of $9,585.00 or $47.93 per share. I have
sold covered calls with a strike as high as $49 with this position, but the
current strike is $47, and I have gone as low as $46.
Total option premiums: $753.37
Total dividend
payments (counting November ex-date): $180.00
Total stock loss at $47:
-$202.11
Total, absolute gain
on the position: $731.26
Total, absolute return
percentage ($731.26/$9,585.00): 7.63%
Annualized total
return percentage (held 180 days): 15.47%
No comments:
Post a Comment