Once I wrote the monthly results
post, I had a look at my portfolio to plan some transactions for the
month. Even though the market continues
on an upward trend, we do seem to have hit a point of resistance, so I thought
I might take the opportunity to make adjustments or do other maintenance, like
I did with the COP/VLO wash trade last month.
I settled on rolling out three positions: AAPL, DOW, and VLO.
Here are the updated trading plans
for these three positions, net of commissions and fees, and assuming forecast dividends
are collected during the holding period:
AAPL
Shares:
Bought 100 shares in March 2015, total
basis $12,757.99, average share price of $127.57.
Selling $130 covered calls and
rolling monthly.
Options:
Total options income: $871.74
– I started with the May call and rolled out to July with this trade.
Dividend:
Total dividends collected: $47.00
Net Profit:
Estimated Net Profit: $1,142.75
Absolute Return on Investment: ($1,142.75/$12,757.99) = 8.96%
Annualized Return (125 days): 8.96%*(365/125) = 26.15%
Estimated Net Profit: $1,142.75
Absolute Return on Investment: ($1,142.75/$12,757.99) = 8.96%
Annualized Return (125 days): 8.96%*(365/125) = 26.15%
DOW
Shares:
Bought 200 shares in May 2015, total
basis $10,382.00, average share price of $51.92.
Selling $52.50 covered calls and
rolling monthly.
Options:
Total options income: $252.50
– I started with the June call and rolled out to July with this trade.
Dividend:
Total dividends collected (June
ex-date): $84.00
Net Profit:
Estimated Net Profit: $435.50
Absolute Return on Investment: ($435.50/$10,382.00) = 4.19%
Annualized Return (75 days): 4.19%*(365/75) = 20.41%
Estimated Net Profit: $435.50
Absolute Return on Investment: ($435.50/$10,382.00) = 4.19%
Annualized Return (75 days): 4.19%*(365/75) = 20.41%
VLO
Shares:
Bought 100 shares in May 2015, total
basis $5,765.00, average share price of $57.65.
This trade was designed as a wash sale for COP, a stock that had been
mired in its 52-week lows - a post about the trade is here. Selling $60.00 covered calls and
rolling monthly.
Options:
Total options income: $163.25
– I started with the June call and rolled out to July with this trade.
Dividend:
Total dividends collected (no
ex-date during holding period): $0.00
Net Profit:
Estimated Net Profit: $380.25
Absolute Return on Investment: ($380.25/$5,765.00) = 6.60%
Annualized Return (60 days): 6.60%*(365/60) = 40.12%
Estimated Net Profit: $380.25
Absolute Return on Investment: ($380.25/$5,765.00) = 6.60%
Annualized Return (60 days): 6.60%*(365/60) = 40.12%
No comments:
Post a Comment