Saturday, March 8, 2014

New Position: FB - third time!

(Note:  A bad thing happened.  My laptop died, and I don’t have access to my spreadsheet files and blog post templates. So I’m behind on posts; I owe my February 2014 results, and I’ve continued trading in the meantime. I probably won’t try to catch up, just post new trades as they come – as I rebuild my spreadsheet files.  I’m hoping that the repair is just a replacement battery – if so, I’ll be sure to back up in the future!) 

I continue to keep about a third of my account value in cash.  I need to average down my position values if this is going to keep up; the average is currently around $11,000 and needs to be between $8,000 and $10,000 in order for my portfolio model to work. I’d like to have between 12 and 16 positions going at any one time, but right now I only have nine in play.

Despite that, I took another bite of FB, again establishing a 200 share position.  This will make the third time with this stock…maybe I should just buy it and hold it instead of these entries and exits with the covered calls.  That is something to think about, but today, I’ll just post the position plan for these shares – net of fees and commissions.



Bought 200 shares at average share price $70.21 (total $14,041.00)
Sold 2 70 Mar wk 1s, rolled them to monthlies, and then rolled out to 75 May 2014 (See? I’ve been away)

Net Profit:

1) Options Income:  = $914.37
2) Dividend Income: No dividends on FB
3) Capital Appreciation if assigned at $75.00:  $941.00

Total Net Profit if assigned and dividend collected:  $1,855.37
Absolute Return on Investment: ($1,855.37/$14,041.00) = 13.21%
Annualized Return if Assigned (75 days):  13.21%*(365/75) = 64.31%

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