After my MSFT position was called away, I had seen the cash balance of my account get above 20 percent again. I would like to run at a 10 percent balance for a while, even though that will be challenging for the next few weeks – I have no less than five positions likely up for assignment today as the February contracts expire! In any case, after my screening exercise a few weeks ago I had identified NOC as a candidate; yesterday I pulled the trigger with a 100 share position.
Here are the details:
NOC
2/16/2012 Bought 100 shares at average share price $59.62 (total $5,961.75)
2/16/2012 Sold 1 NOC May 2012 62.50 at $0.94 (total $94.74)
Net Profit:
1) Options Income: = $94.74
2) Dividend Income: Ex-date is 2/23, $50.00
3) Capital Appreciation if assigned at $35: $271.14
2/16/2012 Bought 100 shares at average share price $59.62 (total $5,961.75)
2/16/2012 Sold 1 NOC May 2012 62.50 at $0.94 (total $94.74)
Net Profit:
1) Options Income: = $94.74
2) Dividend Income: Ex-date is 2/23, $50.00
3) Capital Appreciation if assigned at $35: $271.14
Total Net Profit if Assigned and dividend collected: $94.74 + $50 + $271.14 = $415.88
Absolute Return on Investment: ($415.88/$5,961.75) = 6.98%
Annualized Return if Assigned (90 days): 6.98%*(365/90) = 28.29%
Yesterday, the date of purchase, NOC's closing price was out of the money (OTM).
No comments:
Post a Comment