Tuesday, July 29, 2014

Unwinding F

It seems that July has turned into Rescue My IRA’s month of threes – after three roll-out and up transactions, I recently completed a third unwind transaction, including the one I am posting on today, for F.  I have three transactions I need to post – on Monday I rolled out PFE and FB, and today I unwound CAT.  After starting the month with 15 positions in play, Rescue My IRA now has 12 as July comes to a close – I’ll have one more post to put up about a new position before I post monthly results.

Meanwhile, here is the final analysis of the F trade, net of commissions and fees:


Bought 500 shares in March 2014 at an average price of $15.32, total position basis $7,662.00
Sold on unwind 500 shares at $8,862.85. 
Total stock gain:  $1,200.85

Total options income:   -$690.56 (By unwinding, I exchanged the option premium for additional stock gains in this trade)

Total dividends collected:  $62.50

Net Profit:
Total Net Profit after Unwinding:  $572.79
Absolute Return on Investment: $572.79/$7,662.00) = 7.48%
Annualized Return (135 days):  7.48%*(365/135) = 20.21%

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