Wednesday, June 18, 2014

Unwinding INTC

I unwound my 27 Aug covered call for INTC yesterday.  The stock was in the money and there wasn’t much point in letting the investment just sit there for another two months with little upside.  It is the earliest I’ve had the opportunity to close out an in the money position – now I’ll move on to finding a new stock to roll the funds into.

Here is the final analysis of this INTC trade, net of commissions and fees:

Bought 300 shares in April at an average price of $26.57, total position basis $7,972.00
Sold on unwind 300 shares at $8,992.80. 
Total stock gain:  $1,020.80

Total options income:   -$685.02 (By unwinding, I exchanged the option premium for additional stock gains in this trade)

Total dividends collected:  $67.50

Net Profit:
Total Net Profit after Unwinding:  $403.28
Absolute Return on Investment: ($402.38/$7,972.00) = 5.06%
Annualized Return (days):  5.06%*(365/73) = 25.29%

No comments:

Post a Comment