Last week I rolled the
AAPL position out from August to September, and up from a $95 strike price to a
$97.50 strike price. When I established
the position back in June, I expected that I would just work with it on
weeklies and then have the position called away quickly, but it has turned out
to be more of a mid-term opportunity, now forecast to run three months or so.
And that’s okay by me –
if the position goes the distance to the September contract, it will wind up as
a hat trick, with earnings from call premiums, dividends, and a stock
gain. It also will have generated a 6%
return over just about 90 days, which works out to 26% annualized – far exceeding
my goals for a 12% annualized return.
Here’s the analysis of
the position, net of fees and commissions, and assuming I collect dividends
through the September expiration.
AAPL
This is a 100-share
position acquired post-split, with a basis of $9,380.99, or $93.81 per
share. I was selling $95 strikes and
rolling them weekly, then monthly, before the roll-up to $97.50.
Total covered call
premiums: $211.46
Total dividend
payments (August ex-dividend): $47.00
Total stock gain at $97.50: $351.01
Total, absolute gain
on the position: $609.47
Total, absolute return
percentage ($609.47/$9,380.99): 6.50%
Annualized total
return percentage (held approx 91 days): 26.06%
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