Last week seemed to
offer a continuation of the consolidation we’ve been seeing during February so
far; however, by Friday we finally had an up day, so the market ended on a
higher note, and the value of the Rescue My IRA achieved a new high. Meanwhile, I took advantage of the trading
earlier in the week and rolled out the IP position, securing this month’s dividend
payment and scoring a nice premium from the extended covered call.
Here’s the analysis of
the position, net of fees and commissions and assuming I collect the February dividend
for IP.
IP
This position consists
of 200 shares, with a total basis of $9,585.00, or $47.93 per share. Since last June, I’ve sold strikes ranging
from $47.00 to $49.00; the current covered calls have a strike price of $48.00.
Total covered call
premiums: $811.31
Total dividend
payments (including the forecast February ex-dividend): $250.00
Total stock gain at $48: -$2.11
Total, absolute gain
on the position: $1,059.20
Total, absolute return
percentage ($1,059.20/$9,585.00): 11.05%
Annualized total
return percentage (held approx 210 days):
19.10%
No comments:
Post a Comment