Sunday, June 15, 2014
Rolling out GE and PFE
Seems like I haven’t posted a few of my past trades, but then again, I didn’t trade for a couple of weeks while I was away on vacation. By the way, thanks for 150 views of my monthly results for May! Today, I’ll put up the results of two roll-outs: GE and PFE.
Here’s the analysis of the two positions, net of fees and commissions, and assuming I collect dividends through the holding periods.
This is a 300-share position with a basis of $7,901.99, or $26.34 per share. I started out by selling covered call $26 strikes, but rolled up to $27 and continue selling them. The current contract expires in September 2014. Even though I am forecasting a hat trick, with positive income from all three sources, this position is underperforming my goal of 12% annualized for total return.
Total covered call premiums: $98.72
Total dividend payments: $132.00
Total stock gain at $27: $180.01
Total, absolute gain on the position: $410.73
Total, absolute return percentage ($410.73/$7,901.99): 5.20%
Annualized total return percentage (held approx 180 days): 10.54%
This is a 300-share position with a basis of $9,256.00, or $30.85 per share. This is a stock where I have gotten caught in a downgrade. In the past I might have sold to exit immediately, but I decided to stay in and minimize stock losses – I’ll continue to manage it closely. The current forecast is for a close to overall breakeven result with the $29 Aug 2014 contract.
Total covered call premiums: $635.20
Total dividend payments: $156.00
Total stock gain at $29: -$574.00
Total, absolute gain on the position: $217.20
Total, absolute return percentage ($217.20/$9,256.00): 2.35%
Annualized total return percentage (held approx 235 days): 3.64%