Wednesday, January 29, 2014
Rolling Out KO and PFE
I took advantage of the down days last week to complete a couple of roll-outs on KO and PFE. Rather than a longer post today, I’ll simply put up the analysis of the positions, net of fees and commissions, and assuming I collect dividends between now and the respective expirations.
400 share position established in two lots; total basis $12,160.00 and average price of $40.36. Selling $40 strikes and rolling them on a monthly basis, rolled out to April with this trade.
Total covered call premiums: $713.41
Total dividend payments (including the forecast February ex-dividend): $336.00
Total stock gain at $40.00: -$160.07
Total, absolute gain on the position: $889.34
Total, absolute return percentage ($889.34/$12,160.00): 7.31%
Annualized total return percentage (held approx 210 days): 12.71%
300 share position, basis $9,256.00, average price per share is $30.85.
Selling $31.00 strikes, mostly working with weeklies to date, rolled out to April with this trade.
Total covered call premiums: $233.73
Total dividend payments (February ex-date): $78.00
Total stock gain at $31.00: $26.89
Total, absolute gain on the position: $338.62
Total, absolute return percentage ($338.62/$9,256.00): 3.66%
Annualized total return percentage (held 90 days): 14.84%