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.
Tuesday, December 10, 2013
Another green day in the markets yesterday, so
I unwound my MAT trade a week early, rather than waiting for the shares to be
called away next week at expiration.
This position was in place for a mere 35 days, and the annualized return
on it was almost 26%.
I have a couple of positions that will likely be called away this month, so it could be a good month on that account. I haven't seen any opportunities to roll out other positions, and my cash stash is piling up, now 30% of the account value.
Details of the MAT below, net
of fees and commissions, of course!
The average price per
share for this 200 share position was $44.88, with a total position basis of $8,975.00
Sold on unwind 200
shares at $9,274.83
income: -$149.01 (due to BTC transaction)
Net Profit: Total Net Profit after
Absolute Return on Investment: ($222.82/$8,975.00) = 2.48%
Annualized Return (35 days): 2.48%*(365/35) = 25.89%