After I post today
about two roll-outs – CAT and FB – I’ll be caught up on the month’s
trading. We’re headed into the holiday
weekend and I’ll be drafting my monthly results to go up over the weekend. Of course the trading week will still have
some opportunities and I will seek them out, posting if there are any more
trades.
In the meantime, here’s
the analysis of the CAT and FB positions.
CAT
This is a 100 share
position established in August 2012; basis is $8,716.99 or $87.17 per share.
This transaction rolled out to a $85.00 Feb 2014 covered call. I've held the position for more than a year - it's very much a dog of the DOW and just sort of limps along, albeit with an overall positive return on the position.
Total option
premiums: $908.88
Total dividend payments
(including dividends through the current contract): $336.00
Total stock gain at $85.00: -$234.17
Total, absolute gain
on the position: $1,010.71
Total, absolute return
percentage ($1,010.71/$8,716.99): 11.59%
Annualized total
return percentage (held approx 540 days):
7.84%
FB
Since I had a good
experience with a short-term trade on FB last month, I decided to try again…even
though I knew lightning probably wouldn’t strike twice. This is a 100 share position with a basis of
$5,186.99 or $51.87 per share.
Total option premiums: $213.21
Total dividend
payments (no dividend on this stock – a rule breaker!): $0.00
Total stock gain at $52.50: $45.90
Total, absolute gain
on the position: $259.11
Total, absolute return
percentage ($259.11/$5,186.99): 5.00%
Annualized total
return percentage (held 47 days): 38.79%
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