UPS - Adjustment

The following adjustment was made today on UPS:

The UPS Jul07 75 call was ITM so I rolled it out to Oct07 and up to the 80 strike to avoid assignment. Normally I would have waited until there was little or no time value left, but since I'm going on vacation tomorrow I had to roll it today.

18-Jul-07 - Buy Back & Roll Out/Up - BTC 1 Jul07 75.00 Call @ -0.56 -
18-Jul-07 - Continued Trade - STO 1 Oct07 80.00 Call @ 0.89 -

Current Position Summary:

Stock Investment: $7,193.00
Income Generated: $124.00
Percent Income Generated: 1.72%
Annualized Income Generated: 3.58%
Net Profit If Called: $931.00
Percent Return If Called: 12.94%
Annualized Return If Called: 26.84%
Days to Expiration: 176 days

Trade History:

26-Apr-07 - Initial Stock Position - BTO 100 UPS @ 71.93 - VICC
26-Apr-07 - Continued Trade - STO 1 May07 75.00 Call @ 0.10 - Expired
21-May-07 - Continued Trade - STO 1 Jul07 75.00 Call @ 0.39 - Closed
05-Jun-07 - Dividend Received - DIV 100 Dividend @ 0.42 -
18-Jul-07 - Buy Back & Roll Out/Up - BTC 1 Jul07 75.00 Call @ -0.56 -
18-Jul-07 - Continued Trade - STO 1 Oct07 80.00 Call @ 0.89 -

Note that as a VICC position the primary objective is capital appreciation. The stock will be held long term until it reaches or surpasses it's fair value. Front month OTM call options are sold to bring in a small amount of income while waiting for the stock to appreciate. The calls are sold far enough OTM to avoid assignment and the need to make any mid-month adjustments.