Yesterday in a traditional IRA I earned a profit in the following transaction:
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
01/20/2012 BTC 2 COP Jan 21 2012 70 Calls @.77 -165.52
01/20/2012 STO 2 COP Jan 27 2012 70 Calls @1.35 +258.45
01/30/2012 STO 2 COP Feb 18 2012 70 Calls @.58 +104.47
02/16/2012 Sold 200 COP @ 70 13979.75
We made $295.65 when these shares were assigned. We held the shares for 34 days. Our rate of return was 2.1% which equates to 22.54% annual.
Showing posts with label covered call. Show all posts
Showing posts with label covered call. Show all posts
Friday, February 17, 2012
Friday, January 13, 2012
New Trade: Conoco-Phillips (COP) Covered Call
Today in a traditional IRA I entered into the following transaction:
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
Our out of pocket on this transaction is $13881.50 or $69.41/share. There are only 4 market days until options expiry. If this is called away it will provide a return of $100 in 7 days or .007% which equates to 36.4% annual. This is an issue we like long term and there is a good chance we'll roll this position. There will be a spin-off company later in the year as well as a dividend raise in the next quarter.
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
Our out of pocket on this transaction is $13881.50 or $69.41/share. There are only 4 market days until options expiry. If this is called away it will provide a return of $100 in 7 days or .007% which equates to 36.4% annual. This is an issue we like long term and there is a good chance we'll roll this position. There will be a spin-off company later in the year as well as a dividend raise in the next quarter.
Monday, December 19, 2011
Trade Continuation AT&T (T) Covered Call
Today in a traditional IRA I continued the following transaction:
06/27/2011 Bought 200 T @ 30.889 -6187.79
06/27/2011 STO 2 Aug 20 2011 31 Calls @.53 +94.50
08/01/2011 Dividend +86.00
08/03/2011 BTC 2 Aug 20 2011 31 Calls@.05 -10.00
08/03/2011 STO 2 Jan 21 2012 31 Calls@.66 +120.50
11/01/2011 Dividend +86.00
11/22/2011 BTC 2 Jan 21 2012 31 Calls@.05 -10.00
12/02/2011 STO 2 Dec 17 2011 29 Calls@.38 +64.47
12/19/2011 STO 2 Feb 18 2012 29 Calls@.59 +106.47
With this latest transaction we have lowered our out of pocket to $5649.85 or $28.24/share. AT&T goes ex-dividend on January 6 with their raised dividend of .44/share. We might get called out but I doubt it since our expiration date is 6 weeks later.
We are recovering nicely in this trade after arguably paying too much for the stock to start. I wasn't religiously following the charts and only entering an investment at the bottom of the trade cycle when I entered this trade. Nevertheless if we collect the dividend our amount out of pocket will drop to $5561.85 or $27.81/share.
If we get called away in February and don't roll the position our profit will be $218.15 which equates to 3.5% or 5.3% annual. This is not great but it is still a profit on a stock that dropped in price from the time we bought it. I like the stock at cheaper entry points and have written some out of the money puts at the 27.5 strike price in other accounts.
06/27/2011 Bought 200 T @ 30.889 -6187.79
06/27/2011 STO 2 Aug 20 2011 31 Calls @.53 +94.50
08/01/2011 Dividend +86.00
08/03/2011 BTC 2 Aug 20 2011 31 Calls@.05 -10.00
08/03/2011 STO 2 Jan 21 2012 31 Calls@.66 +120.50
11/01/2011 Dividend +86.00
11/22/2011 BTC 2 Jan 21 2012 31 Calls@.05 -10.00
12/02/2011 STO 2 Dec 17 2011 29 Calls@.38 +64.47
12/19/2011 STO 2 Feb 18 2012 29 Calls@.59 +106.47
With this latest transaction we have lowered our out of pocket to $5649.85 or $28.24/share. AT&T goes ex-dividend on January 6 with their raised dividend of .44/share. We might get called out but I doubt it since our expiration date is 6 weeks later.
We are recovering nicely in this trade after arguably paying too much for the stock to start. I wasn't religiously following the charts and only entering an investment at the bottom of the trade cycle when I entered this trade. Nevertheless if we collect the dividend our amount out of pocket will drop to $5561.85 or $27.81/share.
If we get called away in February and don't roll the position our profit will be $218.15 which equates to 3.5% or 5.3% annual. This is not great but it is still a profit on a stock that dropped in price from the time we bought it. I like the stock at cheaper entry points and have written some out of the money puts at the 27.5 strike price in other accounts.
Tuesday, November 1, 2011
New Trade: Microsoft MSFT Covered Call
This afternoon with the DOW down over 300 points I entered into a Microsoft covered call investment. Microsoft has been raising their dividend for seven straight years. It just raised the dividend to .20/share (3.07% annual yield) and goes ex-dividend November 15. MSFT fulfills my qualification of a stock I would like to hold long term. Here is the transaction:
11/01/2011 13:29:58 Bought 100 MSFT @ 26.029 -5,215.79
11/01/2011 13:31:11 Sold 2 MSFT Nov 04 2011 26.0
Call @ 0.36 60.47
I may take the ~1% return in 3 days on this weekly option, however, another definite possibility depending on how the next couple of days plays out, is that I will roll the trade to the next week or Nov 19 with an eye toward capturing the dividend. Of course, there is also the possibility the call expires worthless. In any event, our cost basis is $25.77.
Feel the Fear?
Things are getting more interesting as the market drops due to Euro fears. Dividend Champions are dropping in price but after their large run up of late they need to pull back even more before I enter into any new income investments. I've been looking at INTC and COP among others but I'm not seeing obvious opportunities. Come to Momma! :)
Monday, October 31, 2011
Profitable Trade: SLV Silver Miner ETF
The trade looks something like this:
10/20/2011 15:43:21 Bought 200 SLV @ 29.6899 -5,947.97
10/20/2011 15:43:45 Sold 2 SLV Oct 28 2011 29.0 Call @ 1.49 286.47
10/31/2011 10:18:09 OPTION ASSIGNED (SLV Oct 28 2011 29.0 Call)
10/31/2011 10:18:09 Sold 200 SLV @ 29 5,779.89
In 11 days we made $118.39 on an investment of $5661.50 or 2.1%, including commissions.This equates to an annual return of 69.7%.
Report Card: For those keeping track our success rate is at 100% since the inception of this blog although the sample rate of 2 closed transactions is admittedly rather small.
10/20/2011 15:43:21 Bought 200 SLV @ 29.6899 -5,947.97
10/20/2011 15:43:45 Sold 2 SLV Oct 28 2011 29.0 Call @ 1.49 286.47
10/31/2011 10:18:09 OPTION ASSIGNED (SLV Oct 28 2011 29.0 Call)
10/31/2011 10:18:09 Sold 200 SLV @ 29 5,779.89
In 11 days we made $118.39 on an investment of $5661.50 or 2.1%, including commissions.This equates to an annual return of 69.7%.
Report Card: For those keeping track our success rate is at 100% since the inception of this blog although the sample rate of 2 closed transactions is admittedly rather small.
Friday, October 28, 2011
Profitable Trade: Realty Income (O) Covered Call
The trade with commissions is as follows:
10/4/11 Bought 100 shares of O - $3,034.27
10/4/11 STO 1 Nov 19, 2011 30 @1.75 - $164.23
10/28/11 Option assigned at 30 - $2979.95
At the time I bought Realty Income it was trading near the bottom of it's trade channel. We then sold an in the money call which I figured would get assigned. This call was assigned for the dividend. Realty Income pays a monthly dividend of 14.5 cents a share (and rising). I made $109.91 in 24 days or 3.83%, 58.24% annualized. I would have bought more but I have other Realty Income holdings and didn't want to get too heavily weighted in the REIT. Not bad for an in the money call...
BTW, here is a good article on Realty Income's future prospects.
10/4/11 Bought 100 shares of O - $3,034.27
10/4/11 STO 1 Nov 19, 2011 30 @1.75 - $164.23
10/28/11 Option assigned at 30 - $2979.95
At the time I bought Realty Income it was trading near the bottom of it's trade channel. We then sold an in the money call which I figured would get assigned. This call was assigned for the dividend. Realty Income pays a monthly dividend of 14.5 cents a share (and rising). I made $109.91 in 24 days or 3.83%, 58.24% annualized. I would have bought more but I have other Realty Income holdings and didn't want to get too heavily weighted in the REIT. Not bad for an in the money call...
BTW, here is a good article on Realty Income's future prospects.
Thursday, October 27, 2011
Trade continuation: SLV Silver ETF covered call
SLV has risen sharply in the last few days. I find it hard to resist rolling forward for a short period of time, getting a net credit and increasing the strike price so I can participate some more in the price increase. I had that opportunity today with SLV.
BTC 4 SLV Oct 28 32 Calls @ 1.71
STO 4 SLV Nov 19 33 Calls @ 1.92
This trade brought in $21/contract, lowers our cost basis, increases downside protection and allows us to participate more in the rise in price. With the market rising overall with the easing of Europe fears I'm not particularly excited about entering into new income positions.
BTC 4 SLV Oct 28 32 Calls @ 1.71
STO 4 SLV Nov 19 33 Calls @ 1.92
This trade brought in $21/contract, lowers our cost basis, increases downside protection and allows us to participate more in the rise in price. With the market rising overall with the easing of Europe fears I'm not particularly excited about entering into new income positions.
Trade continuation: GDX covered call
GDX jumped up to 59 so I decided to continue this trade rather than close it out. The transaction now looks like this:
10/25 Bought GDX @56.72
10/25 STO GDX Oct. 28, 2011 56 Call @ 1.52
10/27 BTC GDX Oct. 28, 2011 56 Call @ 3.00
10/27 STO GDX Nov 19, 2011 56 Call @ 4.10
With the recent rise in the market and precious metals, I'm not too excited about entering into any new income positions. I like to swoop in during fearful times, not euphoric times. I decided to take advantage of the herd's hopefulness and increase downside protection from $55.20 to $54.10 and bring in additional income of $110 per contract. This is a very conservative roll out as GDX is deep in the money.
If we get called out we get 3.4% in less than a month or ~45% annually. Not bad for a very conservative trade...
10/25 Bought GDX @56.72
10/25 STO GDX Oct. 28, 2011 56 Call @ 1.52
10/27 BTC GDX Oct. 28, 2011 56 Call @ 3.00
10/27 STO GDX Nov 19, 2011 56 Call @ 4.10
With the recent rise in the market and precious metals, I'm not too excited about entering into any new income positions. I like to swoop in during fearful times, not euphoric times. I decided to take advantage of the herd's hopefulness and increase downside protection from $55.20 to $54.10 and bring in additional income of $110 per contract. This is a very conservative roll out as GDX is deep in the money.
If we get called out we get 3.4% in less than a month or ~45% annually. Not bad for a very conservative trade...
Tuesday, October 25, 2011
GDX Covered Call Trade
Bought GDX @56.72
STO GDX Oct. 28, 2011 56 Call @ 1.52
This in the money weekly option has only 3 days left before expiration. If it gets called out we'll make $80 per contract for 3 days on a $5520.00 investment. That's a 1.45% return for 3 days or 176.41% annually. These calculations are exclusive of commissions.
Precious metals seemed to have bottomed and began their ascent once again. We would prefer to get called out but if not we'll simply write next week's call of our choosing. If it really craters we might write a monthly call. We have downside protection on this 3 day trade to $55.20.
STO GDX Oct. 28, 2011 56 Call @ 1.52
This in the money weekly option has only 3 days left before expiration. If it gets called out we'll make $80 per contract for 3 days on a $5520.00 investment. That's a 1.45% return for 3 days or 176.41% annually. These calculations are exclusive of commissions.
Precious metals seemed to have bottomed and began their ascent once again. We would prefer to get called out but if not we'll simply write next week's call of our choosing. If it really craters we might write a monthly call. We have downside protection on this 3 day trade to $55.20.
Subscribe to:
Posts (Atom)