Last month, I adjusted
the FB position that I established in December, rolling up to a $60
strike. The shares have continued to
climb since then, reaching nearly $70 last week as February contract expirations
approach. I had a profitable position as
it stood with the $60 strikes, and while I looked for opportunities to roll-up
and roll-out, I didn’t find anything to pull the trigger on, and finally
allowed the shares to be assigned.
As I wrote in the last
post about FB, this is my second go ‘round with the stock. I made a great return the first time, and as
the analysis below shows, I did well with it this second time. I’m definitely going to watch for an
opportunity to get in again, probably on the next dip below $65, if there is
one. If I didn’t do anything but sell a
back-month covered call, I could meet my goal of a 12% annualized return with
this stock!
Here’s the analysis of
the most recent FB position.
FB
This is a 200 share
position established between November and December 2013 with two 100 share
purchases. The per share basis is $54.94, for a total of
$10,988.49. Past trades had rolled the covered call strike price up to $60.
There’s an earlier
post about adding the second lot of 100 shares while rolling up here:
Total option
premiums: $274.93
Total dividend
payments (no dividends on FB): $0.00
Total stock gain at
$60: $994.40
Total, absolute gain
on the position: $1,269.33
Total, absolute return
percentage ($1,269.33/$10,988.49): 11.55%
Annualized total
return percentage (held 120 days): 35.14%
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