Here’s another
catch-up post. I have been diligently managing
my CAT position since opening it in August 2012 – it is definitely a “Dog of
the DOW” this year…it’s not meeting my goal of a 12% annual return, but it’s
not too far off. I’ll continue holding
it through the current November contract, at least.
Here’s the analysis of
the position.
CAT
The CAT position
consists of 100 shares with a basis of $87.17 per share. Since opening the position in August 2012, I’ve
sold covered calls at strikes ranging from $85 to $95; the current contract is November
$87.50.
Total option
premiums: $724.40
Total dividend payments
(including the forecast October ex-dividend):
$276.00
Total stock gain at $87.50: $15.83
Total, absolute gain
on the position: $1,016.23
Total, absolute return
percentage ($1,016.23/$8,716.99): 11.66%
Annualized total
return percentage (held approx 450 days):
9.46%
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