Tuesday, January 21, 2014

Called Away for the Hat Trick: INTC

Even though there was some downward pressure on the stock, INTC finished in the money by more than a buck on Friday, and my shares were called away at the January expiration.  This is the first time in a while I’ve had shares called – I usually can manage to unwind the position a couple of weeks early, and I get the proceeds moved into a new position ASAP, but that didn’t work out for me with my January $24.00 on INTC this time.

No matter.  I had the shares for 90 days and collected covered call premiums, dividends, and stock gains on this one, making it a hat trick.  And the final returns pegged out at 4.92% absolute, and 19.95% annualized – exceeding my goal of 12%.  I can’t complain.

Here is the record on this position, as usual, net of fees and commissions:


Bought 400 shares at an average price of $23.68, total position basis $9,471.00
Shares called away on assignment at $9,582.89, average share price $23.96.
Total stock gain:  $111.89

Total options income (I rolled the $24.00 strike out three times):  $263.92

Total dividends collected:  $90.00

Net Profit:
1) Stock gains:  $111.89
2) Options income:  $263.92
3) Dividend Income: $90.00

Total Net Profit after Assignment:  $465.81
Absolute Return on Investment: ($465.81/$9,471.00) = 4.92%
Annualized Return (90 days):  4.92%*(365/90) = 19.95%

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