HYDL - Review

Here's a position on HYDL that closed in June. The following is the trade history and returns, including IB commissions.

03/20/06 - Bought 100 shares @ 74.38
03/20/06 - Sold 1 Jun06 70 Call @ 8.49
06/16/06 - Jun06 70 Call exercised and stock called away

Stock Investment: $7,438.00
Income Generated: $849.00
Net Profit: $411.00
Percent Return: 5.53%
Annualized Return: 22.92%
Duration of Trade: 88 days

Buy & Hold Comparison

Opening Price: $74.38
Closing Price: $71.79
Dividends: $0.00
Net Profit: $-$259.00
Percent Return: -3.48%
Annualized Return: -14.44%
Duration of Trade: 88 days

This position did better than buy and hold. If you look at a chart of HYDL you'll see that the stock rose shortly after the initial purchase and then declined. It traded as high as $89.71 in April, or up about 21%, and as low as $65.51 in June, or down about 12%.

No adjustments were needed for this trade and the profit was received 3 months before the position closed.