Like many of my generational colleagues, the baby boomers, I've found that my best intentions about saving for retirement aren't always meeting the mark. In 2011, I took some old 401(k) accounts and combined them into a self-directed IRA with Scottrade, and established a strategy of using covered calls to stabilize and enhance my returns. Rescue My IRA chronicles the progress of my IRA rescue using this approach.
Saturday, December 7, 2013
Last winter, when I decided that I would focus
strictly on S&P four- or five-star stocks in my trading plan, one of my
first trades was with CMI. My most
recent contract was a December $125, and early last week the delta finally
pegged at 1.0, so I unwound it rather than waiting for the shares to be called
A highlight of this trade is the absolute gain
percentage – it is above 12% for a position I held for 300 days.
Readers know that my goal is 12% annualized;
here is a trade that did better than my goal for it.
And, hopefully, CMI is the first of between
three and five positions that I will exit during December, all for share gains.
Here is the record on the position, net of
fees and commissions:
The 100 share position
had a basis price of $119.56, total position basis $11,956.00
Sold on unwind at $133.43
share, net $13,342.76
Net Profit: Total Net Profit after
Absolute Return on Investment: ($1,444.20/$13,342.76) = 12.08%
Annualized Return (300 days): 12.08%*(365/300) = 14.70%