Today with the DOW down ~31 and INTC at 24.75 I entered into the following transaction in a Roth IRA:
Bought 2 INTC Nov 19 2011 24 Calls @ .89 -189.52
Sold 2 INTC Jan 21 2012 24 Calls @ 1.70 +328.47
I rolled these in the money calls for a net credit of $138.95. In addition we will receive a $42 dividend on December 1st. This lowers our cost basis/amount invested to $22.67/share. Our assigned gain after commissions is $246 or 5.2% which equates to ~24.7% annually. At $22.67 our yield on cost is 3.7%. Intel is a company that I am interested in holding for the long term and this investment has me sleeping like a baby at night.
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