Monday, September 15, 2014

Called Away Early: PSA

Last week the combination of in-the-money and ex-dividend occurred on my PSA shares, and so the shares were called away.  I’ve held these shares for more than a year, and while the position did not meet my 12% annualized returns goal, it was profitable and it beat a savings account.  The position also earned income all three ways, stock gains, dividends, and covered call premiums. 

Here at Rescue My IRA, we call that a Hat Trick. 

So – winning!

Between unwinding FB and JPM, and this assignment, the account is flush with cash.  Need to put it back to work!

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


Bought 100 shares in July 2013 at an average price of $163.59, total position basis $16,359.00.
Called away on ex-dividend date, 100 shares at $16,982.00. 
Total stock gain:  $623.00

Total options income: $174.20

Total dividends collected:  $545.00

Net Profit:
Total Net Profit after assignment:  $1,342.20
Absolute Return on Investment: ($1,342.20/$16,982.00) = 8.20%
Annualized Return (420 days):  14.58%*(365/420) = 7.13%

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