Diversion

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:

GM

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%

T

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%

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