Monday, January 23, 2012

Profitable Trade: Intel (INTC) Covered Calls

 In a traditional IRA we were assigned our Intel covered calls. This trade went down as follows:

11/02/2011   Bought 200 INTC @ 23.8875                                                  -4,787.49
11/02/2011   STO 2 INTC Nov 19 2011 24.0 Call @ 0.42                                     72.47
11/14/2011   BTC 2 INTC Nov 19 2011 24 Calls @ .89                                     -189.52
11/14/2011   STO 2 INTC Jan 21 2012 24 Calls @ 1.70                                   +328.47
12/01/2011   Dividend                                                                                  +42.00
01/21/2012   Sold 200 INTC @ 24                                                                +4779.91

In this trade we made $245.84 in 81 days on an average of ~$4600 invested. This equates to a return of 5.3% or 23.88% annual. As always we include our commissions paid in the calculations. We allowed ourselves to get assigned because we didn't see any attractive opportunities to roll for a credit. I only roll options for a credit, no exceptions. We really like INTC and will probably write out of the money covered puts in this account to buy it back at a price of our choosing. Of course we will be paid for our efforts.

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