Sunday, December 21, 2014
Adding on and Rolling Out GM and T
During the rock-and-roll week we just had, I took advantage of the down days to do some add-ons and roll-outs on GM and T. While the shares were low, I added 100 shares to each of these positions while also rolling them out a month or two.
Here are the current position plans for GM and T after the roll-outs, net of fees and commissions, and assuming I collect dividends through the holding period:
With all the company has been through in the last few years, GM is currently rated five stars by S&P. I established a 300-share position in November 2014, and added 100 shares this week to make a 300-share position out of it. The basis is now $12,397.99, or $30.99 per share. The current covered call is $32 Mar 2015; I started with a $32 strike and have been rolling the contract out every other month or so.
Total covered call premiums: $520.95
Total dividend payments (includes March ex-date): $210.00
Total stock gain at $32: $384.01
Total, absolute gain on the position: $1,114.96
Total, absolute return percentage ($1,114.96/$12,397.99): 11.98%
Annualized total return percentage (approx 142 days if held to expiration): 30.97%
As with GM, this position was established with a 300-share lot back in August, and I added 100 shares last week. Now it is a 400-share position with a basis of $13,621.96, or $34.05 per share. I have been selling covered calls at the $35 strike, rolling them just about monthly since I started.
Total covered call premiums: $308.44
Total dividend payments (includes January ex-date): $336.00
Total stock gain at $35: $360.04
Total, absolute gain on the position: $1,004.48
Total, absolute return percentage ($1,004.48/$13,621.96): 7.37%
Annualized total return percentage (held approx 200 days): 13.46%