Saturday, December 17, 2011

Trade Continuation - Microsoft (MSFT) Covered Call

Today I continued a MSFT investment in a traditional IRA as follows:
 
11/01/2011  13:29:58 Bought 200 MSFT @ 26.029                                      -5,215.79
11/01/2011  13:31:11 Sold 2 MSFT Nov 4 2011 26.0 Call @ 0.36                        60.47
11/04/2011  14:52:03 Bought 2 MSFT Nov 04 2011 26.0 Call @ 0.25                 -61.52
11/04/2011  14:52:44 Sold 2 MSFT Dec 17 2011 26.0 Call @ 0.88                     164.45
12/08/2011  Dividend                                                                                     40.00
12/16/2011  BTC 2 MSFT Dec 17 2011 26 Calls @ .05                                       -10.03
12/16/2011  STO 2 MSFT Jan 21 2011 26 Calls @.67                                       112.47

This roll lowered our amount invested to $4899.53 or $24.50/share. We are successfully collecting monthly income in addition to the dividend. If we get called away we will make ~280.00 after commissions. This equates to a return of ~5.4% on our initial investment or 25.54% annual.

3 comments:

  1. Great trade! I will look at MSFT and KO next time I am working on new positions.

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  2. Hi JTC, I think MSFT and KO are great for this strategy. Good luck to you.

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