Diversion

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. 

KO

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%

PFE

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%

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