As I mentioned in the year-end wrap post, I
have six trades under my belt already in the Rescue My IRA account. Today I will post about JPM, which was called
away last Thursday on its ex-dividend date.
I have started using weeklies as part of my
strategy to get more turnover in the account.
While I haven’t made any adjustments to my trading plan for this
activity yet, I have had a couple of good trades using my usual stock selection
criteria and selling near in-the-money (or even ITM) strikes with an ex-date
coming up. That’s what happened here
with JPM, which I held for about 20 days.
Here is the record on this position, as usual,
net of fees and commissions:
JPM
Shares:
Bought 200 shares at
an average price of $56.22, total position basis $11,243.00
Called away 1/2/2014,
ex-dividend date, at $56.50, net $11,282.89
Total stock
gain: $39.89
Options:
Total options
income: $132.48
Dividend:
Total dividends
collected: $0.00 (called on ex-date)
Net Profit:
1) Stock gains: $39.89
Net Profit:
1) Stock gains: $39.89
2) Options
income: $132.48
3) Dividend Income: $0.00
Total Net Profit after Assignment: $172.37
Absolute Return on Investment: ($172.37/$11,243.00) = 1.53%
Annualized Return (20 days): 1.53%*(365/20) = 27.98%
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