Tuesday, November 19, 2013
Rolling out F and IP
We’re in the middle of a great month here in November 2013 – plenty of new highs getting strung along so far this week. That’s put most of my positions, which are all S&P 500 stocks, in the money, or close to it. I used the trading action of the last two weeks to do some adjustments on the shares that hadn’t made it to that status: F and IP.
For F, the position is right at the target of 12% annualized return, the goal for Rescue My IRA positions, while IP is performing slightly better than that. Here’s the analysis of the two positions.
F is a 500 share position started in August, bought in two lots, with a basis of $8,616.00 and average share price of $17.23. I have been selling covered calls at $17.00, $17.50, and $18.00 on the position.
Total option premiums: $288.19
Total dividend payments: $50.00
Total stock gain at $17: -$133.11
Total, absolute gain on the position: $205.08
Total, absolute return percentage ($205.08/$8,616.00): 2.38%
Annualized total return percentage (held approx 75 days): 11.58%
This is a 200 share position I established in June. My current share basis is $47.93, and I am selling strikes between $47.00 and$49.00 – the current contract is a January 2014 $47.00.
Total option premiums: $788.35
Total dividend payments: $180.00
Total stock gain at $47: -$202.11
Total, absolute gain on the position: $766.24
Total, absolute return percentage ($766.24/$9,585.00): 7.99%
Annualized total return percentage (held 180 days): 16.21%