Wednesday, April 29, 2009

MHP Position 1 - Adjustment

The following adjustment was made today on first MHP position:

29-Apr-09 - Buy Back and Roll Out - BTC 1 May09 25.00 Call @ -5.11 -
29-Apr-09 - Interim Trade - STO 1 Jun09 25.00 Call @ 5.39 -

The May09 25.00 call was ITM with less than $0.05 time value and would have resulted in a loss if called, so I rolled it out to a Jun09 25.00 call in order to avoid assignment. I received a net credit on the roll of $28.00.

I decided to split this position into two positions. The second position is also ITM (May09 25 call) and I'll allow it to be called if it's still ITM at May expiration, since it will result in a profit.

Current Position Summary:

Stock Investment: $4.527.00
Income Generated: $557.70
Percent Income Generated: 12.16%
Annualized Income Generated: 11.21%
Net Profit If Called: -$1,476.30
Percent Return If Called: -32.61%
Annualized Return If Called: -30.06%
Days Held to Expiration: 396 days

Trade History:

19-May-08 - Initial Stock Position - BTO 100 MHP @ 45.27 -
19-May-08 - Initial Call Option - STO 1 Jun08 45.00 Call @ 1.64 - Expired
11-Jun-08 - Dividend Received - DIV 100 Dividend @ 0.22 -
07-Jul-08 - Continued Trade - STO 1 Aug08 45.00 Call @ 0.34 - Expired
22-Aug-08 - Continued Trade - STO 1 Sep08 45.00 Call @ 0.51 - Closed
10-Sep-08 - Dividend Received - DIV 100 Dividend @ 0.22 -
23-Sep-08 - Continued Trade - STO 1 Nov08 45.00 Call @ 0.79 - Closed
20-Oct-08 - Buy Back and Roll Down - BTC 1 Nov08 45.00 Call @ -0.21 - Closed
20-Oct-08 - Interim Trade - STO 1 Nov08 35.00 Call @ 0.29 - Expired
24-Nov-08 - Interim Trade - STO 1 Jan09 30.00 Call @ 0.87 - Expired
10-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.22 -
27-Jan-09 - Interim Trade - STO 1 Feb09 22.50 Call @ 0.35 - Closed
09-Feb-09 - Buy Back and Roll Out/Up - BTC 1 Feb09 22.50 Call @ -3.30 -
09-Feb-09 - Interim Trade - STO 1 Mar09 25.00 Call @ 1.89 - Expired
11-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.23 -
24-Mar-09 - Interim Trade - STO 1 May09 25.00 Call @ 1.16 - Closed
29-Apr-09 - Buy Back and Roll Out - BTC 1 May09 25.00 Call @ -5.11 -
29-Apr-09 - Interim Trade - STO 1 Jun09 25.00 Call @ 5.39 -

Thursday, April 23, 2009

Covered Calls and Naked Puts: Synthetic Equivalents

Covered calls and naked puts are synthetic equivalents. They have the same risk/reward profile, meaning they have the same net investment and profit/loss potential, when done at the same strike and expiration. To fully understand this concept you need to understand synthetic positions, put/call parity, options arbitrage, and conversion/reversal arbitrage.

Here are links to 4 articles that explain these topics in detail:

  1. Synthetic Positions

  2. Put/Call Parity

  3. Options Arbitrage

  4. Conversion/Reversal Arbitrage

These are some pretty complex topics but they're essential for understanding why a covered call is the same as a naked put, and vice versa.

Tuesday, April 21, 2009

PSUN - Adjustment

The following adjustments were made today on PSUN:

21-Apr-09 - Interim Trade - STO 4 Jun09 5.00 Call @ 0.19 -

Current Position Summary:

Stock Investment: $9,108.00
Income Generated: $1,819.80
Percent Income Generated: 19.28%
Annualized Income Generated: 5.58%
Net Profit If Called: -$5,288.20
Percent Return If Called: -58.06%
Annualized Return If Called: -16.23%
Days Held to Expiration: 1306 days

Trade History:

21-Nov-05 - Initial Stock Position - BTO 200 PSUN @ 26.39 -
21-Nov-05 - Initial Call Option - STO 2 Dec05 25.00 Call @ 1.84 - Expired
20-Dec-05 - Continued Trade - STO 2 Jan06 25.00 Call @ 0.69 - Expired
23-Jan-06 - Continued Trade - STO 2 Mar06 25.00 Call @ 0.74 - Expired
20-Mar-06 - Continued Trade - STO 2 Jun06 25.00 Call @ 0.64 - Expired
26-Jun-06 - Second Stock Position - BTO 200 PSUN @ 19.16 -
26-Jun-06 - Combined Cost Basis - $9,108.00 400 @ 22.77 -
26-Jun-06 - Continued Trade - STO 4 Dec06 22.50 Call @ 0.69 - Closed
18-Sep-06 - Buy Back & Roll Out/Down - BTC 4 Dec06 22.50 Call @ -0.16 -
18-Sep-06 - Interim Trade - STO 4 Jan07 17.50 Call @ 0.54 - Closed
18-Dec-06 - Buy Back & Roll Out/Up - BTC 4 Jan07 17.50 Call @ -3.01 -
18-Dec-06 - Continued Trade - STO 4 Jan09 22.50 Call @ 3.69 - Closed
07-Jan-08 - Buy Back - BTC 4 Jan09 22.50 Call @ -0.61 -
24-Jan-08 - Interim Trade - STO 4 Jun08 12.50 Call @ 0.74 - Closed
22-May-08 - Buy Back & Roll Out - BTC 4 Jun08 12.50 Call @ -0.11 -
22-May-08 - Interim Trade - STO 4 Jul08 12.50 Call @ 0.23 - Expired
22-Jul-08 - Interim Trade - STO 2 Jan09 12.50 Call @ 0.32 - Expired
22-Jul-08 - Interim Trade - STO 2 Sep08 10.00 Call @ 0.31 - Closed
12-Sep-08 - Buy Back & Roll Out - BTC 2 Sep08 10.00 Call @ -0.04 -
12-Sep-08 - Interim Trade - STO 2 Jan09 10.00 Call @ 0.14 - Expired
21-Apr-09 - Interim Trade - STO 4 Jun09 5.00 Call @ 0.19 -

PFE - Adjustment

The following adjustment was made today on PFE:

21-Apr-09 - Interim Trade - STO 2 Jun09 15.00 Call @ 0.20 -

Current Position Summary:

Stock Investment: $4,565.00
Income Generated: $741.00
Percent Income Generated: 16.23%
Annualized Income Generated: 11.57%
Net Profit If Called: -$824.00
Percent Return If Called: -18.05%
Annualized Return If Called: -12.87%
Days Held to Expiration: 512 days

Trade History:

24-Jan-08 - Initial Stock Position - BTO 200 PFE @ 22.83 -
24-Jan-08 - Initial Call Option - STO 2 Mar08 22.50 Call @ 0.96 - Expired
04-Mar-08 - Dividend Received - DIV 200 Dividend @ 0.32 -
25-Mar-08 - Continued Trade - STO 2 Jun08 22.50 Call @ 0.24 - Expired
03-Jun-08 - Dividend Received - DIV 200 Dividend @ 0.32 -
24-Jul-08 - Continued Trade - STO 1 Dec08 22.50 Call @ 0.22 -
24-Jul-08 - Continued Trade - STO 1 Dec08 22.50 Call @ 0.22 - Expired
29-Jul-08 - Continued Trade - STO 1 Dec08 22.50 Call @ 0.14 - Expired
03-Sep-08 - Dividend Received - DIV 200 Dividend @ 0.32 -
02-Dec-08 - Dividend Received - DIV 200 Dividend @ 0.32 -
22-Dec-08 - Interim Trade - STO 2 Mar09 20.00 Call @ 0.31 - Expired
03-Mar-09 - Dividend Received - DIV 200 Dividend @ 0.32 -
24-Mar-09 - Interim Trade - STO 2 Apr09 15.00 Call @ 0.20 - Expired
21-Apr-09 - Interim Trade - STO 2 Jun09 15.00 Call @ 0.20 -

LLY - Adjustment

The following adjustment was made today on LLY:

21-Apr-09 - Interim Trade - STO 1 May09 35.00 Call @ 0.49 -

Current Position Summary:

Stock Investment: $4,971.00
Income Generated: $691.30
Percent Income Generated: 13.91%
Annualized Income Generated: 13.43%
Net Profit If Called: -$779.70
Percent Return If Called: -15.68%
Annualized Return If Called: -15.15%
Days Held to Expiration: 378 days

Trade History:

02-May-08 - Initial Stock Position - BTO 100 LLY @ 49.71 -
02-May-08 - Initial Call Option - STO 1 Jun08 50.00 Call @ 1.29 - Expired
10-Jun-08 - Dividend Received - DIV 100 Dividend @ 0.47 -
07-Jul-08 - Continued Trade - STO 1 Aug08 50.00 Call @ 0.29 - Expired
22-Aug-08 - Continued Trade - STO 1 Sep08 50.00 Call @ 0.32 - Expired
10-Sep-08 - Dividend Received - DIV 100 Dividend @ 0.47 -
23-Sep-08 - Continued Trade - STO 1 Oct08 50.00 Call @ 0.40 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 40.00 Call @ 0.19 - Expired
24-Nov-08 - Interim Trade - STO 1 Jan09 40.00 Call @ 0.39 - Expired
10-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.47 -
29-Jan-09 - Interim Trade - STO 1 Mar09 40.00 Call @ 0.90 - Expired
10-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.49 -
24-Mar-09 - Interim Trade - STO 1 Apr09 35.00 Call @ 0.74 - Expired
21-Apr-09 - Interim Trade - STO 1 May09 35.00 Call @ 0.49 -

JNJ - Adjustment

The following adjustment was made today on JNJ:

21-Apr-09 - Continued Trade - STO 1 May09 55.00 Call @ 0.30 -

Current Position Summary:

Stock Investment: $6,146.00
Income Generated: $882.20
Percent Income Generated: 14.35%
Annualized Income Generated: 27.15%
Net Profit If Called: $236.20
Percent Return If Called: 3.84%
Annualized Return If Called: 7.27%
Days Held to Expiration: 193 days

Trade History:

03-Nov-08 - Initial Stock Position - BTO 100 JNJ @ 61.46 -
03-Nov-08 - Initial Call Option - STO 1 Nov08 60.00 Call @ 2.95 - Expired
24-Nov-08 - Continued Trade - STO 1 Dec08 60.00 Call @ 1.90 - Expired
22-Dec-08 - Continued Trade - STO 1 Jan09 60.00 Call @ 1.45 - Expired
22-Jan-09 - Continued Trade - STO 1 Mar09 60.00 Call @ 0.95 - Expired
10-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.46 -
24-Mar-09 - Continued Trade - STO 1 Apr09 55.00 Call @ 0.80 - Expired
21-Apr-09 - Continued Trade - STO 1 May09 55.00 Call @ 0.30 -

ADP - Adjustment

The following adjustment was made today on ADP:

21-Apr-09 - Interim Trade - STO 1 May09 39.00 Call @ 0.34 -

Current Position Summary:

Stock Investment: $4,308.00
Income Generated: $571.00
Percent Income Generated: 13.25%
Annualized Income Generated: 20.67%
Net Profit If Called: $163.00
Percent Return If Called: 3.78%
Annualized Return If Called: 5.90%
Days Held to Expiration: 234 days

Trade History:

23-Sep-08 - Initial Stock Position - BTO 100 ADP @ 43.08 -
23-Sep-08 - Initial Call Option - STO 1 Oct08 42.50 Call @ 1.75 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 37.50 Call @ 0.84 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 40.00 Call @ 0.46 - Expired
22-Dec-08 - Continued Trade - STO 1 Feb09 42.50 Call @ 0.91 - Expired
01-Jan-09 - Dividend Received - DIV 100 Dividend @ 0.33 -
24-Feb-09 - Interim Trade - STO 1 Apr09 37.50 Call @ 0.75 - Expired
01-Apr-09 - Dividend Received - DIV 100 Dividend @ 0.33 -
21-Apr-09 - Interim Trade - STO 1 May09 39.00 Call @ 0.34 -

Monday, April 20, 2009

Paper Trade - Covered Call & Naked Put

There's been a lot of discussion on the JustCoveredCalls Yahoo group on covered calls (CC) vs naked/cash secured puts (NP/CSP). Both strategies are synthetic equivalents of each other and have the same risk/reward profile when done at the same strike/expiration. Due to put/call parity, these strategies have about the same net investment and dollar amount return. However, there are differences in capital requirements, especially when trading in a margin account.

Selling an OTM put has about the same net investment and dollar amount return as an ITM covered call with the same strike/expiration (e.g. $20 ITM May CC will be about the same as selling a $20 OTM May NP/CSP).

For those unfamiliar with naked/cash secured puts, let me provide a brief explanation. When you sell a put option you are obligated to buy the stock at the strike price of the put if assigned. So, for example, if a stock is trading for $25 and you sell an OTM $20 strike put, you agree to buy 100 shares of stock at $20/share, or $2,000. You either need to have $2,000 in cash to secure the put or you must have a margin account. At expiration, if the stock stays at $25, the put expires and you get to keep the premium. If the stock falls below $20 the put will be exercised and you'll have to buy 100 shares for $2,000.

This would be the same as buying the stock at $25 and selling an ITM $20 strike call. At expiration, if the stock stays at $25, the call will be exercised and you'll have to sell 100 shares for $2,000. If the stock falls below $20 the call expires and you get to keep the premium. Same results as the NP/CSP only in reverse.

In a margin account, you only need to put up about 20% or $400, depending on your broker, even if you have the entire $2,000 in cash. This dramatically reduces your capital requirement and increases your percentage profit, even though the profit amount is about the same as a covered call. Margin requirements for the stock portion of a CC are usually 50%, depending on your broker. So, you can see that there's a clear margin advantage to trading NP/CSP's vs CC's, even though both strategies are essentially the same.

In a non-margin account, like an IRA, the put MUST be fully secured by cash (i.e. a CSP), so you MUST have $2,000 in cash, to cover the cost of the stock. In this case, $2,000 is deducted from the cash available for investment, so even though the $2,000 remains in your account, you can't spend it. However, you do earn interest on that $2,000, but remember options pricing takes interest and dividends into account, so their impact is minimized when comparing CC's vs NP/CSP's.

Since the members of the JustCoveredCalls Yahoo group recently voted to include NP/CSP's in our discussions, I thought I would start a paper trade example on my blog. Since I trade in an IRA I will use 100% cash secured puts and compare that to a traditional covered call.

On 4/9 I established a new CC position on TGT which I'll use for this example. I created a paper trade for the CSP position which I'll adjust at the same time as the CC position over the next several months. Here are the details of both positions:

TGT CC Position (Real Position)

09-Apr-09 - Initial Stock Position - BTO 100 TGT @ 39.78
09-Apr-09 - Initial Call Option - STO 1 May09 37.50 Call @ 3.70

Capital Invested: $3,978.00
Income Generated: $370.00
Net Investment: $3,608.00
Percent Income Generated: 9.30%
Annualized Income Generated: 94.30%
Net Profit If Called: $142.00
Percent Return If Called: 3.57%
Annualized Return If Called: 36.19%
Days Held to Expiration: 36 days

TGT CSP Position (Paper Position)

09-Apr-09 - Initial Put Option - STO 1 May09 37.50 Put @ 1.54

Capital Invested: $3,750.00
Income Generated: $144.00
Net Investment: $3,606.00
Percent Income Generated: 3.84%
Annualized Income Generated: 38.93%
Net Profit If Expired: $144.00
Percent Return If Expired: 3.84%
Annualized Return If Expired: 38.93%
Days Held to Expiration: 36 days

As you can see, the net investment and dollar profit is about the same. However, the capital invested in the CC is greater than the capital invested (cash required to secure the put) in the CSP. If the CC is called away and the CSP expires, the CSP will have a higher percentage return, even though the dollar amount return is about the same, due to the lower capital requirement. If the CC is not called and the CSP is assigned, then the CC will generate more cash and have a higher yield than the CSP. So, there are trade offs for either result.

If TGT is still above $37.50 by May expiration, I'll roll the CC position to avoid assignment and roll the CSP at the same time. If TGT is below $37.50 by May expiration, I'll roll the CSP to avoid assignment and roll the CC at the same time. I'll do this for a few months so we can see the long term affect of using both strategies. TGT also pays a dividend, so we will also see the affects that will have on both positions. For simplicity sake, I will not include interest in these examples, since that's a bit harder to track.

Anyway, I hope this will be a useful exercise and help people understand the similarities and differences of these two strategies.

Sunday, April 19, 2009

PFCB Position #2 - Closed

The PFCB Apr09 25.00 call was exercised on Fri and the stock was called away for a profit.

This was the second half of the PFCB position, which was the result of averaging down in Dec08. I decided to allow this second position to be called away since it resulted in a nice profit. I'm still holding the original 100 shares and will continue with that positions until it too can be called away for a profit.

The following is the trade history and returns, including IB commissions.

Covered Call Results

Stock Investment: $2,273.00
Income Generated: $289.30
Net Profit: $516.30
Percent Return: 22.71%
Annualized Return: 64.77%
Duration of Trade: 128 days

Trade History:

10-Dec-08 - Second Stock Position - BTO 100 PFCB @ 22.73 -
10-Dec-08 - Interim Trade - STO 1 Apr09 25.00 Call @ 2.89 - Exercised
17-Apr-09 - Option Exercised - EX 1 Apr09 25.00 Call @ 25.00 -

CRI - Closed

The CRI Apr09 20.00 call was exercised on Fri and the stock was called away for a profit.

This is a good example of a stock that declined by over 52% during the first year that I owned it. By averaging down and selling calls I lowered my cost basis and ended up with an 11.43% annualized return in about 2 years, even though the stock is still down over 18% from the initial purchase price.

The following is the trade history and returns, including IB commissions.

Covered Call Results

Stock Investment: $4,049.00
Income Generated: $896.20
Net Profit: $847.20
Percent Return: 20.92%
Annualized Return: 11.43%
Duration of Trade: 668 days

Trade History:

19-Jun-07 - Initial Stock Position - BTO 100 CRI @ 26.54 -
19-Jun-07 - Initial Call Option - STO 1 Sep07 25.00 Call @ 2.99 - Expired
24-Sep-07 - Interim Trade - STO 1 Dec07 22.50 Call @ 0.69 - Expired
14-Jan-08 - Interim Trade - STO 1 Mar08 20.00 Call @ 0.49 - Expired
25-Mar-08 - Interim Trade - STO 1 Apr08 17.50 Call @ 0.24 - Expired
24-Apr-08 - Second Stock Position - BTO 100 CRI @ 13.95 -
24-Apr-08 - Combined Cost Basis - $4,049.00 200 @ 20.25 -
24-Apr-08 - Interim Trade - STO 2 Sep08 17.50 Call @ 0.64 - Closed
12-Sep-08 - Buy Back & Roll Out/Up - BTC 2 Sep08 17.50 Call @ -2.16 -
12-Sep-08 - Continued Trade - STO 2 Dec08 20.00 Call @ 1.60 - Expired
22-Dec-08 - Continued Trade - STO 2 Jan09 20.00 Call @ 0.76 - Expired
22-Jan-09 - Continued Trade - STO 2 Mar09 20.00 Call @ 0.84 - Expired
24-Mar-09 - Continued Trade - STO 2 Apr09 20.00 Call @ 0.58 - Exercised
17-Apr-09 - Option Exercised - EX 2 Apr09 20.00 Call @ 20.00 -

Friday, April 17, 2009

SNDK - Adjustment

The following adjustments were made today on SNDK:

17-Apr-09 - Buy Back and Roll Out - BTC 2 Apr09 14.00 Call @ -1.05 -
17-Apr-09 - Interim Trade - STO 2 May08 15.00 Call @ 1.53 -

The Apr09 14.00 call was ITM and would have resulted in a loss if called, so I rolled it out/up to a May08 15.00 call in order to avoid assignment. I received a net credit on the roll of $48.00.

Current Position Summary:

Stock Investment: $10,854.00
Income Generated: $3,942.70
Percent Income Generated: 37.21%
Annualized Income Generated: 12.16%
Net Profit If Called: -$3,815.60
Percent Return If Called: -35.15%
Annualized Return If Called: -11.49%
Days Held to Expiration: 1117 days

Trade History:

24-Apr-06 - Initial Stock Position - BTO 100 SNDK @ 59.56 -
24-Apr-06 - Initial Call Option - STO 1 Jul06 57.50 Call @ 7.09 - Closed
06-Jul-06 - Buy Back & Roll Out/Down - BTC 1 Jul06 57.50 Call @ -0.16 -
06-Jul-06 - Second Stock Position - BTO 100 SNDK @ 48.98 -
06-Jul-06 - Combined Cost Basis - $10,854.00 200 @ 54.27 -
06-Jul-06 - Continued Trade - STO 2 Oct06 55.00 Call @ 3.39 - Expired
23-Oct-06 - Continued Trade - STO 2 Jan07 55.00 Call @ 2.14 - Closed
19-Dec-06 - Buy Back & Roll Out/Down - BTC 2 Jan07 55.00 Call @ -0.16 -
19-Dec-06 - Continued Trade - STO 2 Feb07 50.00 Call @ 1.69 - Closed
06-Feb-07 - Buy Back & Roll Out/Down - BTC 2 Feb07 50.00 Call @ -0.06 -
06-Feb-07 - Interim Trade - STO 2 Apr07 45.00 Call @ 1.39 - Expired
27-Apr-07 - Interim Trade - STO 2 May07 45.00 Call @ 0.84 - Expired
21-May-07 - Interim Trade - STO 2 Jun07 45.00 Call @ 0.98 - Closed
15-Jun-07 - Buy Back & Roll Out/Up - BTC 2 Jun07 45.00 Call @ -1.46 -
15-Jun-07 - Continued Trade - STO 2 Oct07 50.00 Call @ 2.60 - Expired
22-Oct-07 - Continued Trade - STO 2 Nov07 45.00 Call @ 1.64 - Expired
20-Nov-07 - Continued Trade - STO 2 Dec07 40.00 Call @ 0.67 - Expired
14-Jan-08 - Interim Trade - STO 2 Feb08 35.00 Call @ 0.85 - Expired
21-Feb-08 - Interim Trade - STO 2 Mar08 30.00 Call @ 0.24 - Expired
25-Mar-08 - Interim Trade - STO 2 May08 25.00 Call @ 0.74 - Expired
29-Apr-08 - Buy Back & Roll Out/Up - BTC 2 May08 25.00 Call @ -2.35 -
29-Apr-08 - Interim Trade - STO 2 Jul08 30.00 Call @ 1.38 - Expired
24-Jul-08 - Interim Trade - STO 1 Oct08 20.00 Call @ 0.31 - Expired
24-Jul-08 - Interim Trade - STO 1 Oct08 17.50 Call @ 0.65 - Expired
20-Oct-08 - Interim Trade - STO 2 Nov08 18.00 Call @ 1.16 - Expired
24-Nov-08 - Interim Trade - STO 2 Dec08 8.00 Call @ 0.27 - Closed
12-Nov-08 - Buy Back and Roll Out/Up - BTC 2 Dec08 8.00 Call @ -2.01 -
11-Dec-08 - Interim Trade - STO 2 Jan09 11.00 Call @ 1.13 - Closed
16-Jan-09 - Buy Back - BTC 2 Jan09 11.00 Call @ -1.05 -
22-Jan-09 - Interim Trade - STO 2 Feb09 13.00 Call @ 0.81 - Expired
24-Feb-09 - Interim Trade - STO 2 Mar09 11.00 Call @ 0.22 - Expired
24-Mar-09 - Interim Trade - STO 2 Apr09 14.00 Call @ 0.67 - Closed
17-Apr-09 - Buy Back and Roll Out - BTC 2 Apr09 14.00 Call @ -1.05 -
17-Apr-09 - Interim Trade - STO 2 May08 15.00 Call @ 1.53 -

KO - Adjustment

The following adjustment was made today on KO:

17-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 45.00 Call @ -0.21 -
17-Apr-09 - Interim Trade - STO 1 May09 45.00 Call @ 1.40 -

The Apr09 45.00 call was ITM and would have resulted in a loss if called, so I rolled it out to a May09 45.00 call in order to avoid assignment. I received a net credit on the roll of $119.00.

Current Position Summary:

Stock Investment: $5,022.00
Income Generated: $682.00
Percent Income Generated: 13.58%
Annualized Income Generated: 21.27%
Net Profit If Called: $160.00
Percent Return If Called: 3.19%
Annualized Return If Called: 4.99%
Days Held to Expiration: 233 days

Trade History:

24-Sep-08 - Initial Stock Position - BTO 100 KO @ 50.22 -
24-Sep-08 - Initial Call Option - STO 1 Oct08 50.00 Call @ 1.59 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 50.00 Call @ 0.79 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 50.00 Call @ 0.48 - Expired
15-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.38 -
22-Dec-08 - Interim Trade - STO 1 Jan09 47.50 Call @ 0.55 - Expired
22-Jan-09 - Interim Trade - STO 1 Mar09 47.50 Call @ 0.63 - Expired
24-Mar-09 - Interim Trade - STO 1 Apr09 45.00 Call @ 0.80 - Expired
01-Apr-09 - Dividend Received - DIV 100 Dividend @ 0.41 -
17-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 45.00 Call @ -0.21 -
17-Apr-09 - Interim Trade - STO 1 May09 45.00 Call @ 1.40 -

GE - Adjustment

The following adjustment was made today on GE:

17-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 11.00 Call @ -1.58 -
17-Apr-09 - Interim Trade - STO 1 May09 11.00 Call @ 1.87 -

The Apr09 11.00 call was ITM and would have resulted in a loss if called, so I rolled it out to a May09 11.00 call in order to avoid assignment. I received a net credit on the roll of $29.00.

Current Position Summary:

Stock Investment: $2,501.00
Income Generated: $372.00
Percent Income Generated: 14.87%
Annualized Income Generated: 23.20%
Net Profit If Called: -$1,029.00
Percent Return If Called: -41.14%
Annualized Return If Called: -64.18%
Days Held to Expiration: 234 days

Trade History:

23-Sep-08 - Initial Stock Position - BTO 100 GE @ 25.01 -
23-Sep-08 - Initial Call Option - STO 1 Oct08 25.00 Call @ 1.79 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 22.00 Call @ 0.34 - Expired
22-Dec-08 - Interim Trade - STO 1 Feb09 18.00 Call @ 0.48 - Expired
26-Jan-09 - Dividend Received - DIV 100 Dividend @ 0.31 -
24-Feb-09 - Interim Trade - STO 1 Apr09 11.00 Call @ 0.51 - Closed
17-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 11.00 Call @ -1.58 -
17-Apr-09 - Interim Trade - STO 1 May09 11.00 Call @ 1.87 -

BBT - Adjustment

The following adjustment was made today on BBT:

17-Apr-09 - Buy Back and Roll Out - BTC 2 Apr09 22.50 Call @ -1.31 -
17-Apr-09 - Interim Trade - STO 2 Jun09 25.00 Call @ 2.40 -

The Apr09 22.50 call was ITM and would have resulted in a loss if called, so I rolled it out/up to a Jun09 25.00 call in order to avoid assignment. I received a net credit on the roll of $110.00.

Current Position Summary:

Stock Investment: $6.671.00
Income Generated: $1,487.60
Percent Income Generated: 22.30%
Annualized Income Generated: 18.05%
Net Profit If Called: -$183.40
Percent Return If Called: -2.75%
Annualized Return If Called: -2.22%
Days Held to Expiration: 451 days

Trade History:

25-Mar-08 - Initial Stock Position - BTO 100 BBT @ 35.26 -
25-Mar-08 - Initial Call Option - STO 1 Apr08 35.00 Call @ 1.68 - Expired
23-Apr-08 - Continued Trade - STO 1 May08 35.00 Call @ 0.67 - Expired
01-May-08 - Dividend Received - DIV 100 Dividend @ 0.46 -
19-May-08 - Continued Trade - STO 1 Jun08 35.00 Call @ 1.47 - Expired
07-Jul-08 - Interim Trade - STO 1 Aug08 27.50 Call @ 0.35 - Closed
01-Aug-08 - Dividend Received - DIV 100 Dividend @ 0.47 -
11-Aug-08 - Buy Back and Roll Out/Up - BTC 1 Aug08 27.50 Call @ -4.02 -
11-Aug-08 - Dollar Cost Averaging - BTO 100 BBT @ 31.45 -
11-Aug-08 - Combined Cost Basis - $6,671.00 200 @ 33.36 -
11-Aug-08 - Continued Trade - STO 2 Dec08 32.50 Call @ 3.49 - Expired
03-Nov-08 - Dividend Received - DIV 200 Dividend @ 0.47 -
22-Dec-08 - Continued Trade - STO 2 Jan09 32.50 Call @ 0.19 - Expired
22-Jan-09 - Interim Trade - STO 2 Feb09 25.00 Call @ 0.54 - Expired
02-Feb-09 - Dividend Received - DIV 200 Dividend @ 0.47 -
24-Feb-09 - Interim Trade - STO 2 Mar09 20.00 Call @ 0.34 - Expired
24-Mar-09 - Interim Trade - STO 2 Apr09 22.50 Call @ 0.29 - Closed
17-Apr-09 - Buy Back and Roll Out - BTC 2 Apr09 22.50 Call @ -1.31 -
17-Apr-09 - Interim Trade - STO 2 Jun09 25.00 Call @ 2.40 -

Thursday, April 16, 2009

UTX - Adjustment

The following adjustment was made today on UTX:

16-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 45.00 Call @ -2.90 -
16-Apr-09 - Interim Trade - STO 1 May09 45.00 Call @ 3.89 -

The Apr09 45.00 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out to a May09 45.00 call in order to avoid assignment. I received a net credit on the roll of $99.00.

Current Position Summary:

Stock Investment: $7,524.00
Income Generated: $972.60
Percent Income Generated: 12.93%
Annualized Income Generated: 13.48%
Net Profit If Called: -$2,051.40
Percent Return If Called: -27.26%
Annualized Return If Called: -28.43%
Days Held to Expiration: 350 days

Trade History:

02-May-08 - Initial Stock Position - BTO 100 UTX @ 75.24 -
02-May-08 - Initial Call Option - STO 1 Jun08 75.00 Call @ 2.37 - Expired
10-Jun-08 - Dividend Received - DIV 100 Dividend @ 0.32 -
07-Jul-08 - Interim Trade - STO 1 Aug08 70.00 Call @ 0.26 - Expired
22-Aug-08 - Interim Trade - STO 1 Sep08 70.00 Call @ 0.35 - Closed
10-Sep-08 - Dividend Received - DIV 100 Dividend @ 0.32 -
12-Sep-08 - Buy Back & Roll Out - BTC 1 Sep08 70.00 Call @ -0.06 -
12-Sep-08 - Interim Trade - STO 1 Oct08 70.00 Call @ 0.69 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 60.00 Call @ 0.39 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 55.00 Call @ 0.79 - Expired
10-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.39 -
22-Dec-08 - Interim Trade - STO 1 Feb09 60.00 Call @ 0.60 - Closed
23-Jan-09 - Buy Back and Roll Down - BTC 1 Feb09 60.00 Call @ -0.06 -
23-Jan-09 - Interim Trade - STO 1 Feb09 50.00 Call @ 0.90 - Expired
24-Feb-09 - Interim Trade - STO 1 Mar09 45.00 Call @ 0.88 - Expired
10-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.39 -
24-Mar-09 - Interim Trade - STO 1 Apr09 45.00 Call @ 1.20 - Closed
16-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 45.00 Call @ -2.90 -
16-Apr-09 - Interim Trade - STO 1 May09 45.00 Call @ 3.89 -

Tuesday, April 14, 2009

PFCB Position 1 - Adjustment

The following adjustment was made today on first PFCB position:

14-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 25.00 Call @ -2.55 -
14-Apr-09 - Interim Trade - STO 1 May09 25.00 Call @ 3.49 -

The PFCB Apr09 25.00 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out to a May09 25.00 call in order to avoid assignment. I received a net credit on the roll of $94.00.

I decided to split this position into two positions. The second position is also ITM and I'll allow it to be called away, since it will result in a profit.

Current Position Summary:

Stock Investment: $3,578.00
Income Generated: $719.30
Percent Income Generated: 20.10%
Annualized Income Generated: 11.57%
Net Profit If Called: -$358.70
Percent Return If Called: -10.03%
Annualized Return If Called: -5.77%
Days Held to Expiration: 634 days

Trade History:

20-Aug-07 - Initial Stock Position - BTO 100 PFCB @ 35.78 -
20-Aug-07 - Initial Call Option - STO 1 Sep07 35.00 Call @ 2.30 - Expired
24-Sep-07 - Continued Trade - STO 1 Oct07 35.00 Call @ 0.39 - Expired
25-Oct-07 - Continued Trade - STO 1 Jan08 35.00 Call @ 0.22 - Expired
24-Jan-08 - Interim Trade - STO 1 Feb08 30.00 Call @ 0.65 - Expired
21-Feb-08 - Interim Trade - STO 1 Mar08 30.00 Call @ 0.74 - Expired
25-Mar-08 - Continued Trade - STO 1 Apr08 35.00 Call @ 0.34 - Expired
24-Apr-08 - Continued Trade - STO 1 Jun08 35.00 Call @ 0.49 - Expired
24-Jul-08 - Interim Trade - STO 1 Sep08 30.00 Call @ 0.63 - Closed
12-Sep-08 - Buy Back & Roll Out - BTC 1 Sep08 30.00 Call @ -0.06 -
12-Sep-08 - Interim Trade - STO 1 Oct08 30.00 Call @ 0.09 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 22.50 Call @ 0.34 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 20.00 Call @ 0.34 - Closed
10-Dec-08 - Buy Back and Roll Out/Up - BTC 1 Dec08 20.00 Call @ -3.11 -
10-Dec-08 - Interim Trade - STO 1 Apr09 25.00 Call @ 2.89 - Closed
14-Apr-09 - Buy Back and Roll Out - BTC 1 Apr09 25.00 Call @ -2.55 -
14-Apr-09 - Interim Trade - STO 1 May09 25.00 Call @ 3.49 -

EMR - Adjustment

The following adjustment was made today on EMR:

14-Apr-09 - Buy Back and Roll Out/Up - BTC 1 Apr09 30.00 Call @ -1.86 -
14-Apr-09 - Continued Trade - STO 1 May09 31.00 Call @ 2.09 -

The EMR Apr09 30.00 call was ITM with less than $0.10 time value remaining. This position would have resulted in a loss if called, so I rolled it out/up to a May09 31.00 call in order to avoid assignment. I received a net credit on the roll of $23.00.

Current Position Summary:

Stock Investment: $3,569.00
Income Generated: $882.30
Percent Income Generated: 24.72%
Annualized Income Generated: 47.24%
Net Profit If Called: $413.30
Percent Return If Called: 11.58%
Annualized Return If Called: 22.13%
Days Held to Expiration: 191 days

Trade History:

05-Nov-08 - Initial Stock Position - BTO 100 EMR @ 35.69 -
05-Nov-08 - Initial Call Option - STO 1 Nov08 35.00 Call @ 1.90 - Expired
24-Nov-08 - Continued Trade - STO 1 Dec08 35.00 Call @ 1.54 - Expired
10-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.33 -
22-Dec-08 - Continued Trade - STO 1 Jan09 35.00 Call @ 1.56 - Expired
22-Jan-09 - Continued Trade - STO 1 Feb09 35.00 Call @ 1.30 - Expired
24-Feb-09 - Continued Trade - STO 1 Mar09 30.00 Call @ 0.89 - Expired
10-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.33 -
24-Mar-09 - Continued Trade - STO 1 Apr09 30.00 Call @ 0.74 - Closed
14-Apr-09 - Buy Back and Roll Out/Up - BTC 1 Apr09 30.00 Call @ -1.86 -
14-Apr-09 - Continued Trade - STO 1 May09 31.00 Call @ 2.09 -

BAC - Adjustment

The following adjustment was made today on BAC:

14-Apr-09 - Buy Back and Roll Out/Up - BTC 1 Apr09 9.00 Call @ -1.76 -
14-Apr-09 - Interim Trade - STO 1 May09 10.00 Call @ 2.05 -

The BAC Apr09 9.00 call was ITM with less than $0.10 time value remaining. This position would have resulted in a loss if called, so I rolled it out/up to a May09 10.00 call in order to avoid assignment. I received a net credit on the roll of $29.00.

Current Position Summary:

Stock Investment: $3,372.00
Income Generated: $741.00
Percent Income Generated: 21.98%
Annualized Income Generated: 34.42%
Net Profit If Called: -$1,631.00
Percent Return If Called: -48.37%
Annualized Return If Called: -75.77%
Days Held to Expiration: 233 days

Trade History:

24-Sep-08 - Initial Stock Position - BTO 100 BAC @ 33.72 -
24-Sep-08 - Initial Call Option - STO 1 Oct08 32.50 Call @ 3.21 - Expired
26-Sep-08 - Dividend Received - DIV 100 Dividend @ 0.64 -
20-Oct-08 - Interim Trade - STO 1 Nov08 27.50 Call @ 0.73 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 17.50Call @ 0.47 - Expired
22-Dec-08 - Interim Trade - STO 1 Jan09 16.00 Call @ 0.47 - Expired
26-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.32 -
22-Jan-09 - Interim Trade - STO 1 Mar09 9.00 Call @ 0.67 - Expired
24-Mar-09 - Interim Trade - STO 1 Apr09 9.00 Call @ 0.60 - Closed
27-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.01 -
14-Apr-09 - Buy Back and Roll Out/Up - BTC 1 Apr09 9.00 Call @ -1.76 -
14-Apr-09 - Interim Trade - STO 1 May09 10.00 Call @ 2.05 -

Monday, April 13, 2009

UPS - Adjustment

The following adjustment was made today on UPS:

13-Apr-09 - Buy Back & Roll Out - BTC 1 Apr09 50.00 Call @ -4.00 -
13-Apr-09 - Interim Trade - STO 1 May09 50.00 Call @ 4.89 -

The UPS Apr09 50.00 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out to a May09 50.00 call in order to avoid assignment. I received a net credit on the roll of $89.00.

Current Position Summary:

Stock Investment: $7,193.00
Income Generated: $1,017.60
Percent Income Generated: 14.15%
Annualized Income Generated: 6.88%
Net Profit If Called: -$1,175.40
Percent Return If Called: -16.34%
Annualized Return If Called: -7.95%
Days Held to Expiration: 750 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 -
24-Oct-07 - Continued Trade - STO 1 Dec07 80.00 Call @ 0.35 - Expired
10-Jan-08 - Continued Trade - STO 1 Apr08 75.00 Call @ 1.31 - Expired
04-Mar-08 - Dividend Received - DIV 100 Dividend @ 0.45 -
24-Apr-08 - Continued Trade - STO 1 Jun08 75.00 Call @ 0.94 - Expired
03-Jun-08 - Dividend Received - DIV 100 Dividend @ 0.45 -
07-Jul-08 - Interim Trade - STO 1 Aug08 65.00 Call @ 0.56 - Closed
15-Aug-08 - Buy Back and Roll Out - BTC 1 Aug08 65.00 Call @ -1.53 -
15-Aug-08 - Interim Trade - STO 1 Sep08 65.00 Call @ 2.62 -
15-Aug-08 - Interim Trade - STO 1 Sep08 65.00 Call @ 2.62 - Closed
09-Sep-08 - Dividend Received - DIV 100 Dividend @ 0.45 -
12-Sep-08 - Buy Back & Roll Out/Up - BTC 1 Sep08 65.00 Call @ -3.91 -
12-Sep-08 - Continued Trade - STO 1 Jan09 70.00 Call @ 3.59 - Expired
03-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.45 -
22-Jan-09 - Interim Trade - STO 1 Mar09 55.00 Call @ 0.59 - Expired
10-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.45 -
24-Mar-09 - Interim Trade - STO 1 Apr09 50.00 Call @ 0.85 - Closed
13-Apr-09 - Buy Back & Roll Out - BTC 1 Apr09 50.00 Call @ -4.00 -
13-Apr-09 - Interim Trade - STO 1 May09 50.00 Call @ 4.89 -

MCO - Adjustment

The following adjustments were made today on MCO:

13-Apr-09 - Buy Back & Roll Out/Up - BTC 2 Apr09 22.50 Call @ -3.19 -
13-Apr-09 - Interim Trade - STO 2 Aug09 25.00 Call @ 3.89 -

The MCO Apr09 22.50 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out/up to a Aug09 25.00 call in order to avoid assignment. I received a net credit on the roll of $70.00.

Current Position Summary:

Stock Investment: $10,649.00
Income Generated: $2,610.00
Percent Income Generated: 24.51%
Annualized Income Generated: 11.40%
Net Profit If Called: -$3,039.00
Percent Return If Called: -28.54%
Annualized Return If Called: -13.27%
Days Held to Expiration: 785 days

Trade History:

28-Jun-07 - Initial Stock Position - BTO 100 MCO @ 62.41 -
28-Jun-07 - Initial Call Option - STO 1 Jul07 60.00 Call @ 3.49 - Expired
25-Jul-07 - Continued Trade - STO 1 Aug07 60.00 Call @ 1.54 - Expired
20-Aug-07 - Interim Trade - STO 1 Sep07 55.00 Call @ 0.89 - Expired
10-Sep-07 - Dividend Received - DIV 100 Dividend @ 0.08 -
24-Sep-07 - Interim Trade - STO 1 Oct07 55.00 Call @ 0.24 - Expired
25-Oct-07 - Second Stock Position - BTO 100 MCO @ 44.08 -
25-Oct-07 - Combined Cost Basis - $10,649.00 200 @ 53.25 -
25-Oct-07 - Continued Trade - STO 2 Dec07 55.00 Call @ 0.29 - Expired
10-Dec-07 - Dividend Received - DIV 200 Dividend @ 0.08 -
24-Jan-08 - Interim Trade - STO 2 Feb08 40.00 Call @ 0.89 - Expired
21-Feb-08 - Interim Trade - STO 2 Mar08 45.00 Call @ 0.24 - Expired
10-Mar-08 - Dividend Received - DIV 200 Dividend @ 0.10 -
25-Mar-08 - Interim Trade - STO 2 May08 45.00 Call @ 0.54 - Expired
16-May-08 - Buy Back & Roll Out/Up - BTC 2 May08 45.00 Call @ -0.11 -
22-May-08 - Interim Trade - STO 2 Jul08 40.00 Call @ 0.94 - Expired
10-Jun-08 - Dividend Received - DIV 200 Dividend @ 0.10 -
30-Jul-08 - Interim Trade - STO 1 Aug08 40.00 Call @ 0.54 - Closed
30-Jul-08 - Interim Trade - STO 1 Sep08 40.00 Call @ 1.04 - Closed
15-Aug-08 - Buy Back and Roll Out - BTC 1 Aug08 40.00 Call @ -0.26 -
15-Aug-08 - Interim Trade - STO 1 Sep08 40.00 Call @ 2.00 - Closed
10-Sep-08 - Dividend Received - DIV 200 Dividend @ 0.10 -
12-Sep-08 - Buy Back & Roll Out - BTC 2 Sep08 40.00 Call @ -0.71 -
12-Sep-08 - Interim Trade - STO 2 Oct08 40.00 Call @ 1.69 - Expired
20-Oct-08 - Interim Trade - STO 2 Nov08 30.00 Call @ 0.56 - Expired
24-Nov-08 - Interim Trade - STO 2 Jan09 25.00 Call @ 1.19 - Expired
10-Dec-08 - Dividend Received - DIV 200 Dividend @ 0.10 -
22-Jan-09 - Interim Trade - STO 2 Feb09 25.00 Call @ 0.64 - Expired
24-Feb-09 - Interim Trade - STO 2 Apr09 22.50 Call @ 0.81 - Closed
10-Mar-09 - Dividend Received - DIV 200 Dividend @ 0.10 -
13-Apr-09 - Buy Back & Roll Out/Up - BTC 2 Apr09 22.50 Call @ -3.19 -
13-Apr-09 - Interim Trade - STO 2 Aug09 25.00 Call @ 3.89 -

LM - Adjustment

The following adjustment was made today on LM:

13-Apr-09 - Buy Back & Roll Out/Up - BTC 1 Apr09 17.50 Call @ -2.01 -
13-Apr-09 - Interim Trade - STO 1 Aug09 20.00 Call @ 3.20 -
13-Apr-09 - Dividend Received - DIV 100 Dividend @ 0.24 -

The LM Apr09 17.50 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out/up to a Aug09 20.00 call in order to avoid assignment. I received a net credit on the roll of $119.00.

Current Position Summary:

Stock Investment: $9,109.00
Income Generated: $2,015.30
Percent Income Generated: 22.12%
Annualized Income Generated: 10.68%
Net Profit If Called: -$5,093.70
Percent Return If Called: -55.92%
Annualized Return If Called: -27.00%
Days Held to Expiration: 756 days

Trade History:

27-Jul-07 - Initial Stock Position - BTO 100 LM @ 91.09 -
27-Jul-07 - Initial Call Option - STO 1 Aug07 90.00 Call @ 3.49 - Expired
20-Aug-07 - Continued Trade - STO 1 Sep07 90.00 Call @ 2.09 - Expired
24-Sep-07 - Continued Trade - STO 1 Oct07 90.00 Call @ 0.47 - Expired
15-Oct-07 - Dividend Received - DIV 100 Dividend @ 0.24 -
25-Oct-07 - Continued Trade - STO 1 Dec07 85.00 Call @ 2.09 - Expired
31-Dec-07 - Dividend Received - DIV 100 Dividend @ 0.24 -
07-Jan-08 - Interim Trade - STO 1 Feb08 80.00 Call @ 0.97 - Expired
21-Feb-08 - Interim Trade - STO 1 Mar08 75.00 Call @ 0.64 - Expired
25-Mar-08 - Interim Trade - STO 1 Apr08 65.00 Call @ 0.68 - Expired
07-Apr-08 - Dividend Received - DIV 100 Dividend @ 0.24 -
23-Apr-08 - Interim Trade - STO 1 May08 65.00 Call @ 0.39 - Expired
22-May-08 - Interim Trade - STO 1 Jul08 60.00 Call @ 0.82 - Expired
07-Jul-08 - Dividend Received - DIV 100 Dividend @ 0.24 -
29-Jul-08 - Interim Trade - STO 1 Sep08 45.00 Call @ 1.40 - Closed
12-Sep-08 - Buy Back & Roll Out - BTC 1 Sep08 45.00 Call @ -0.40 -
12-Sep-08 - Interim Trade - STO 1 Oct08 45.00 Call @ 1.50 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 25.00 Call @ 1.59 - Expired
20-Oct-08 - Dividend Received - DIV 100 Dividend @ 0.24 -
24-Nov-08 - Interim Trade - STO 1 Dec08 20.00 Call @ 0.49 - Closed
18-Dec-08 - Buy Back & Roll Out - BTC 1 Dec08 20.00 Call @ -1.51 -
18-Dec-08 - Interim Trade - STO 1 Feb09 25.00 Call @ 2.14 - Expired
05-Jan-09 - Dividend Received - DIV 100 Dividend @ 0.24 -
24-Feb-09 - Interim Trade - STO 1 Apr09 17.50 Call @ 0.43 - Closed
13-Apr-09 - Buy Back & Roll Out/Up - BTC 1 Apr09 17.50 Call @ -2.01 -
13-Apr-09 - Interim Trade - STO 1 Aug09 20.00 Call @ 3.20 -

Thursday, April 9, 2009

TGT Position 2 - New Position

A second position was established today on TGT. The following is the trade information, including IB commissions:

09-Apr-09 - Second Stock Position - BTO 100 TGT @ 39.78
09-Apr-09 - Initial Call Option - STO 1 May09 37.50 Call @ 3.70

Stock Investment: $3,978.00
Income Generated: $370.00
Percent Income Generated: 9.30%
Annualized Income Generated: 94.30%
Net Profit If Called: $142.00
Percent Return If Called: 3.57%
Annualized Return If Called: 36.19%
Days Held to Expiration: 36 days

TGT Position 1 - Adjustment

The following adjustment was made today on the first TGT position:

09-Apr-09 - Buy Back & Roll Out/Up - BTC 1 Apr09 32.50 Call @ -7.41 -
09-Apr-09 - Interim Trade - STO 1 Jul09 40.00 Call @ 3.89 -

The TGT Apr09 32.50 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out/up to a Jul09 40.00 call in order to avoid assignment. I paid a net debit on the roll of $352.00, however, I established a new CC position in TGT, selling an ITM May09 37.50 call (see separate trade details), which brought in $370.00, so between the two position I received a net credit of $18.

I did this as an alternative to averaging down and selling 2 Jul09 40.00 calls. In that case I would have had a net credit of $37 but then I would have tied up $3,978 (the price I paid for the new TGT position) until July. By selling an ITM May09 37.50 call, which is currently two strikes ITM, the probability is higher that it will get called in May and free up the $3,978. If not called in May, then I can sell another call and can either combine these into one position or manage them as two separate positions.

Current Position Summary:

Stock Investment: $5,937.00
Income Generated: $1,467.93
Percent Income Generated: 24.71%
Annualized Income Generated: 17.82%
Net Profit If Called: -$1,220.07
Percent Return If Called: -20.55%
Annualized Return If Called: -14.82%
Days Held to Expiration: 506 days

Trade History:

28-Nov-07 - Initial Stock Position - BTO 100 TGT @ 59.37 -
28-Nov-07 - Initial Call Option - STO 1 Dec07 55.00 Call @ 5.66 - Expired
07-Jan-08 - Continued Trade - STO 1 Feb07 55.00 Call @ 0.84 - Expired
21-Feb-08 - Continued Trade - STO 1 Mar08 55.00 Call @ 1.44 - Expired
10-Mar-08 - Dividend Received - DIV 100 Dividend @ 0.14 -
25-Mar-08 - Continued Trade - STO 1 Apr08 55.00 Call @ 1.31 - Expired
23-Apr-08 - Interim Trade - STO 1 May08 55.00 Call @ 0.62 - Closed
16-May-08 - Buy Back & Roll Out/Up - BTC 1 May08 55.00 Call @ -0.11 -
19-May-08 - Continued Trade - STO 1 Jun08 57.50 Call @ 1.21 - Expired
10-Jun-08 - Dividend Received - DIV 100 Dividend @ 0.14 -
07-Jul-08 - Continued Trade - STO 1 Jul08 50.00 Call @ 0.58 - Expired
22-Jul-08 - Continued Trade - STO 1 Sep08 50.00 Call @ 1.25 - Closed
10-Sep-08 - Dividend Received - DIV 100 Dividend @ 0.16 -
12-Sep-08 - Buy Back & Roll Out/Up - BTC 1 Sep08 50.00 Call @ -6.80 -
12-Sep-08 - Continued Trade - STO 1 Oct08 57.50 Call @ 2.62 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 45.00 Call @ 1.18 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 35.00 Call @ 1.39 - Expired
10-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.16 -
22-Dec-08 - Interim Trade - STO 1 Feb09 40.00 Call @ 1.41 - Expired
24-Feb-09 - Interim Trade - STO 1 Mar09 30.00 Call @ 0.76 - Closed
10-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.16 -
20-Mar-09 - Buy Back & Roll Out/Up - BTC 1 Mar09 30.00 Call @ -0.39 -
20-Mar-09 - Interim Trade - STO 1 Apr09 32.50 Call @ 0.93 - Closed
09-Apr-09 - Buy Back & Roll Out/Up - BTC 1 Apr09 32.50 Call @ -7.41 -
09-Apr-09 - Interim Trade - STO 1 Jul09 40.00 Call @ 3.89 -

PLCM - Adjustment

The following adjustment was made today on PLCM:

09-Apr-09 - Buy Back & Roll Out/Up - BTC 1 Apr09 15.00 Call @ -1.91 -
09-Apr-09 - Interim Trade - STO 1 Jul09 17.50 Call @ 1.44 -

The PLCM Apr09 15.00 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out/up to a Jul09 17.50 call in order to avoid assignment. I paid a net debit on the roll of $47.00.

Current Position Summary:

Stock Investment: $3,164.00
Income Generated: $771.00
Percent Income Generated: 24.37%
Annualized Income Generated: 12.76%
Net Profit If Called: -$643.00
Percent Return If Called: -20.32%
Annualized Return If Called: -10.64%
Days Held to Expiration: 697 days

Trade History:

20-Aug-07 - Initial Stock Position - BTO 100 PLCM @ 31.64 -
20-Aug-07 - Initial Call Option - STO 1 Sep07 30.00 Call @ 2.55 - Expired
24-Sep-07 - Continued Trade - STO 1 Oct07 30.00 Call @ 0.34 - Expired
22-Oct-07 - Continued Trade - STO 1 Nov07 30.00 Call @ 0.79 - Expired
20-Nov-07 - Continued Trade - STO 1 Dec07 30.00 Call @ 0.27 - Expired
14-Jan-08 - Interim Trade - STO 1 Feb08 25.00 Call @ 0.78 - Expired
21-Feb-08 - Interim Trade - STO 1 Mar08 25.00 Call @ 0.29 - Expired
25-Mar-08 - Interim Trade - STO 1 May08 25.00 Call @ 0.73 - Closed
16-May-08 - Buy Back & Roll Out/Up - BTC 1 May08 25.00 Call @ -0.06 -
19-May-08 - Continued Trade - STO 1 Jul08 30.00 Call @ 0.24 - Expired
22-Jul-08 - Interim Trade - STO 1 Oct08 25.00 Call @ 0.83 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 25.00 Call @ 0.23 - Expired
24-Nov-08 - Interim Trade - STO 1 Jan09 22.50 Call @ 0.39 - Expired
22-Jan-09 - Interim Trade - STO 1 Feb09 15.00 Call @ 0.29 - Expired
24-Feb-09 - Interim Trade - STO 1 Apr09 15.00 Call @ 0.51 - Closed
09-Apr-09 - Buy Back & Roll Out/Up - BTC 1 Apr09 15.00 Call @ -1.91 -
09-Apr-09 - Interim Trade - STO 1 Jul09 17.50 Call @ 1.44 -

CCL - Adjustment

The following adjustment was made today on CCL:

09-Apr-09 - Buy Back and Roll Out/Up - BTC 2 Apr09 22.50 Call @ -3.29 -
09-Apr-09 - Interim Trade - STO 2 Jul09 25.00 Call @ 3.41 -

The CCL Apr09 22.50 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out/up to a Jul09 25.00 call in order to avoid assignment. I received a net credit on the roll of $12.00.

Current Position Summary:

Stock Investment: $8,125.00
Income Generated: $1,123.40
Percent Income Generated: 13.83%
Annualized Income Generated: 11.44%
Net Profit If Called: -$2,001.60
Percent Return If Called: -24.64%
Annualized Return If Called: -20.39%
Days Held to Expiration: 441 days

Trade History:

02-May-08 - Initial Stock Position - BTO 100 CCL @ 41.36 -
02-May-08 - Initial Call Option - STO 1 Jun08 42.50 Call @ 1.38 - Expired
13-Jun-08 - Dividend Received - DIV 100 Dividend @ 0.40 -
07-Jul-08 - Interim Trade - STO 1 Aug08 35.00 Call @ 0.79 - Closed
05-Aug-08 - Buy Back and Roll Out/Up - BTC 1 Aug08 35.00 Call @ -5.11 -
05-Aug-08 - Dollar Cost Averaging - BTO 100 CCL @ 39.89 -
05-Aug-08 - Combined Cost Basis - $8,125.00 200 @ 40.63 -
05-Aug-08 - Continued Trade - STO 2 Oct08 40.00 Call @ 3.15 - Expired
12-Sep-08 - Dividend Received - DIV 200 Dividend @ 0.40 -
20-Oct-08 - Interim Trade - STO 2 Nov08 32.50 Call @ 0.99 - Expired
24-Nov-08 - Interim Trade - STO 2 Jan09 22.50 Call @ 0.64 - Expired
12-Dec-08 - Dividend Received - DIV 200 Dividend @ 0.40 -
22-Jan-09 - Interim Trade - STO 2 Feb09 22.50 Call @ 0.39 - Expired
24-Feb-09 - Interim Trade - STO 2 Apr09 22.50 Call @ 0.79 - Closed
09-Apr-09 - Buy Back and Roll Out/Up - BTC 2 Apr09 22.50 Call @ -3.29 -
09-Apr-09 - Interim Trade - STO 2 Jul09 25.00 Call @ 3.41 -

APD - Adjustment

The following adjustment was made today on APD:

09-Apr-09 - Buy Back and Roll Out/Up - BTC 1 Apr09 55.00 Call @ -5.41 -
09-Apr-09 - Continued Trade - STO 1 May09 55.00 Call @ 6.39 -

The APD Apr09 55.00 call was ITM with less than $0.05 time value remaining. Even though this position would have resulted in a profit if called, I decided to roll it out to a May09 55.00 call in order to avoid assignment. I received a net credit on the roll of $98.00.

Current Position Summary:

Stock Investment: $5,789.00
Income Generated: $812.95
Percent Income Generated: 14.04%
Annualized Income Generated: 40.36%
Net Profit If Called: $523.95
Percent Return If Called: 9.05%
Annualized Return If Called: 26.01%
Days Held to Expiration: 127 days

Trade History:

08-Jan-09 - Initial Stock Position - BTO 100 APD @ 57.89 -
08-Jan-09 - Initial Call Option - STO 1 Feb09 55.00 Call @ 5.72 - Expired
09-Feb-09 - Dividend Received - DIV 100 Dividend @ 0.44 -
24-Feb-09 - Continued Trade - STO 1 Apr09 55.00 Call @ 0.99 - Closed
09-Apr-09 - Buy Back and Roll Out/Up - BTC 1 Apr09 55.00 Call @ -5.41 -
09-Apr-09 - Continued Trade - STO 1 May09 55.00 Call @ 6.39 -