NTGR - Closed

The NTGR Jun07 25.00 Call was exercised and the stock was called away for a profit. The following is the trade history and returns, including IB commissions.

Here's a example of a position that would have been much better as buy & hold position. This happens at times when the stocks shoot up. This is the lost opportunity risk involved in covered call writing. However, I'm after consistent returns (i.e. base hits, not home runs).

Covered Call Results

Stock Investment: $2,777.00
Income Generated: $409.00
Net Profit: $132.00
Percent Return: 4.75%
Annualized Return: 19.72%
Duration of Trade: 88 days

Buy & Hold Comparison

Opening Price: $27.77
Closing Price: $37.76
P/L per Share: $9.97
Shares: 100
Dividends: $0.00
Net Profit: $997.00
Percent Return: 35.90%
Annualized Return: 148.91%
Duration of Trade: 88 days

Trade History:

19-Mar-07 - Initial Stock Position - BTO 100 NTGR @ 27.77 -
15-Jun-07 - Initial Call Option - STO 1 Jun07 25.00 Call @ 4.09 - Exercised
15-Jun-07 - Option Exercised - EX 1 Jun07 25.00 Call @ 25.00 -