Yesterday I closed out a GDX Gold Miner's ETF investment in a traditional IRA as follows:
10/25/2011 10:37:57 Bought 100 GDX @ 56.7268 -5,682.67
10/25/2011 10:38:30 Sold 1 GDX Oct 28 2011 56.0 Call @ 1.52 141.23
10/27/2011 10:52:44 Bought 1 GDX Oct 28 2011 56.0 Call @ 3 -310.76
10/27/2011 10:53:06 Sold 1 GDX Nov 19 2011 56.0 Call @ 4.1 399.23
11/10/2011 10:11:02 Bought 1 GDX Nov 19 2011 56.0 Call @ 4.6 -470.76
11/10/2011 10:12:04 Sold 1 GDX Dec 17 2011 56.0 Call @ 5.75 564.22
12/19/2011 10:15:55 Sold 1 GDX Feb 18 2012 56.0 Call @ 1.5 139.20
02/16/2012 13:22:44 Sold 100 GDX @ 54.15 5405.10
I would have written a new call on this transaction, however, the person who I was trading for passed away and my involvement with the account ended as well. In this trade we made $185.10. This equates to 3.42% or 10.95% annual.
It should be noted that before we entered
into this trade we actually collected $489.25 in put money which we are
not reflecting in these calculations.
Showing posts with label traditional IRA. Show all posts
Showing posts with label traditional IRA. Show all posts
Saturday, February 18, 2012
Friday, February 17, 2012
Profitable Trade: Conoco Phillips (COP) Covered Calls
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.
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.
Thursday, February 2, 2012
New Trade: Century Link (CTL) Covered Calls
Today with CTL down over 2% I entered into the following trade in a traditional IRA:
02/02/2012 Bought 200 CTL @36.81 7371.71
02/02/2012 STO 2 CTL Feb 18 2012 37 Calls @.8 -148.47
This particular account is for a retiree family member. Century Link was a Dividend Achiever and a Dividend Champion before it froze it's dividend at .725/share. The yield is a whopping 7.73%. CTL goes ex-dividend February 16th and has an earnings report February 15th. I didn't shy away from buying before an earnings report because this is a stock we want to hold long term in this particular portfolio and this increased the income on the calls we wrote since we get paid for volatility.
Our out of pocket is $7223.24 or $36.11 per share. Assuming we don't get called away we will also receive the dividend of $145 which will lower our out of pocket to $7078.24 or $35.39/share. We can also write new calls in two and a half weeks to lower our out of pocket even more. If we do get called away (and don't roll the position) it is still a nice return. I like the setup on this one very much for an enhanced income strategy.
02/02/2012 Bought 200 CTL @36.81 7371.71
02/02/2012 STO 2 CTL Feb 18 2012 37 Calls @.8 -148.47
This particular account is for a retiree family member. Century Link was a Dividend Achiever and a Dividend Champion before it froze it's dividend at .725/share. The yield is a whopping 7.73%. CTL goes ex-dividend February 16th and has an earnings report February 15th. I didn't shy away from buying before an earnings report because this is a stock we want to hold long term in this particular portfolio and this increased the income on the calls we wrote since we get paid for volatility.
Our out of pocket is $7223.24 or $36.11 per share. Assuming we don't get called away we will also receive the dividend of $145 which will lower our out of pocket to $7078.24 or $35.39/share. We can also write new calls in two and a half weeks to lower our out of pocket even more. If we do get called away (and don't roll the position) it is still a nice return. I like the setup on this one very much for an enhanced income strategy.
Monday, January 30, 2012
Trade Continuation: Conoco-Phillips (COP) Covered Calls
Today in a traditional IRA I continued 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
Our January calls expired worthless so I wrote new calls. Due to a family emergency it will be hard to trade weekly options so I wrote these 19 days out. This lowers our out of pocket to $13684.10 or $68.42/share. COP goes ex-dividend on Feb. 17 so if the stock price rises above 70 I may roll the position to make sure I collect the dividend. The dividend will most likely rise this 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
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
Our January calls expired worthless so I wrote new calls. Due to a family emergency it will be hard to trade weekly options so I wrote these 19 days out. This lowers our out of pocket to $13684.10 or $68.42/share. COP goes ex-dividend on Feb. 17 so if the stock price rises above 70 I may roll the position to make sure I collect the dividend. The dividend will most likely rise this quarter.
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 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.
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.
Profitable Trade: Microsoft (MSFT) Covered Calls
In a traditional IRA we got assigned our MSFT calls. The entire transaction was 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
01/21/2012 Sold 200 MSFT @ 26 5179.91
We made $280.38 in 82 days on an average of ~$5000 invested. This equates to a return of 5.6% or 24.92% annual. We were fairly deep in the money so no rolls made any sense. After doing this for many years I have a rule that I only roll for a credit. I really like Microsoft and will probably write covered puts in this account for income and to possibly buy the stock at a price I want to pay.
01/21/2012 Sold 200 MSFT @ 26 5179.91
We made $280.38 in 82 days on an average of ~$5000 invested. This equates to a return of 5.6% or 24.92% annual. We were fairly deep in the money so no rolls made any sense. After doing this for many years I have a rule that I only roll for a credit. I really like Microsoft and will probably write covered puts in this account for income and to possibly buy the stock at a price I want to pay.
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.
Friday, January 6, 2012
Profitable Trade: AT&T Covered Calls
Today in a traditional IRA our shares of AT&T were assigned so that the investor on the other side could capture the dividend. The entire set of transactions looks like this:
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
01/06/2012 Sold 200 T @ 29 +5779.89
We made $130.04 in this series of of transactions. This equates to ~ 2.2% or ~4.1% annual. We're fine with this as we probably paid too much to enter the position and it was sitting there as dead money waiting for the dividend. I thought in December when the T-Mobile deal was falling through that the price would stay below 29. Oh well, I'll enter this position again at my price through the selling of puts. In this particular account we are sitting on a ton of cash, waiting for the next downturn to enter new positions.
Even though the profit on this was small, a profit still it was. I guessed wrong a couple of times but still pulled in enough income to pull a profit.
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
01/06/2012 Sold 200 T @ 29 +5779.89
We made $130.04 in this series of of transactions. This equates to ~ 2.2% or ~4.1% annual. We're fine with this as we probably paid too much to enter the position and it was sitting there as dead money waiting for the dividend. I thought in December when the T-Mobile deal was falling through that the price would stay below 29. Oh well, I'll enter this position again at my price through the selling of puts. In this particular account we are sitting on a ton of cash, waiting for the next downturn to enter new positions.
Even though the profit on this was small, a profit still it was. I guessed wrong a couple of times but still pulled in enough income to pull a profit.
Thursday, December 22, 2011
Profitable Trade: General Electric (GE) Covered Puts
Today I closed out the following transaction in a traditional IRA:
11/22/2011 Sold 3 GE Jan 2012 15 Puts @ .9 +257.71
12/22/2011 BTC 3 GE Jan 2012 15 Puts @.05 -15.04
We made $242.67 in 30 days on these covered puts. This equates to a return of 5.4% or 65.7% annual. We continue to close out transactions on up days and enter new transactions on days when fear is plentiful.
11/22/2011 Sold 3 GE Jan 2012 15 Puts @ .9 +257.71
12/22/2011 BTC 3 GE Jan 2012 15 Puts @.05 -15.04
We made $242.67 in 30 days on these covered puts. This equates to a return of 5.4% or 65.7% annual. We continue to close out transactions on up days and enter new transactions on days when fear is plentiful.
Profitable Trade: Exxon Mobil (XOM) Covered Call
Today I took profits in XOM in a traditional IRA. The transaction looks like this:
12/12/2011 BTC 1 XOM Dec 17 @ 4.6 -470.76
12/12/2011 STO 1 XOM Jan 21 2012 @ 5.6 +549.22
12/22/2011 BTC 1 XOM Jan 21 2012 @ 9.35 -945.76
12/22/2011 Sold 100 XOM @ 84.19 +8408.94
We made $452.64 on this transaction in 13 weeks. Our average out of pocket in this trade was ~$7200. This equates to ~6.3% return or 25.14% annual.
With the run up in the price we pretty much drained all the time decay out of this trade. By closing out early we have more powder in the keg for the next downturn.
09/30/2011 13:44:08 Bought 100 XOM @ 74.3982 -7,449.81
09/30/2011 13:44:50 Sold 1 XOM Oct 7 2011 75.0
Call @ 1.19 108.23
10/07/2011 10:15:56 Bought 1 XOM Oct 7 2011 75.0
Call @ 0.05 -5.02
10/07/2011 10:16:25 Sold 1 XOM Oct 14 2011 75.0
Call @ 0.76 65.23
10/13/2011 09:59:16 Bought 1 XOM Oct 14 2011 75.0
Call @ 1.62 -172.76
10/13/2011 09:59:48 Sold 1 XOM Nov 19 2011 75.0
Call @ 3.35 324.23
11/11/2011 15:11:53 Bought 1 XOM Nov 19 2011 75.0
Call @ 4.6 -470.76
11/11/2011 15:12:58 Sold 1 XOM Dec 17 2011 75.0
Call @ 5.45 534.22
12/09/2011 Dividend +47.00
12/12/2011 BTC 1 XOM Dec 17 @ 4.6 -470.76
12/12/2011 STO 1 XOM Jan 21 2012 @ 5.6 +549.22
12/22/2011 BTC 1 XOM Jan 21 2012 @ 9.35 -945.76
12/22/2011 Sold 100 XOM @ 84.19 +8408.94
We made $452.64 on this transaction in 13 weeks. Our average out of pocket in this trade was ~$7200. This equates to ~6.3% return or 25.14% annual.
With the run up in the price we pretty much drained all the time decay out of this trade. By closing out early we have more powder in the keg for the next downturn.
Monday, December 19, 2011
Trade Continuation: GDX Covered Call
Today I continued a GDX Gold Miner's ETF investment in a traditional IRA as follows:
10/25/2011 10:37:57 Bought 100 GDX @ 56.7268 -5,682.67
10/25/2011 10:38:30 Sold 1 GDX Oct 28 2011 56.0 Call @ 1.52 141.23
10/27/2011 10:52:44 Bought 1 GDX Oct 28 2011 56.0 Call @ 3 -310.76
10/27/2011 10:53:06 Sold 1 GDX Nov 19 2011 56.0 Call @ 4.1 399.23
11/10/2011 10:11:02 Bought 1 GDX Nov 19 2011 56.0 Call @ 4.6 -470.76
11/10/2011 10:12:04 Sold 1 GDX Dec 17 2011 56.0 Call @ 5.75 564.22
12/19/2011 10:15:55 Sold 1 GDX Feb 18 2012 56.0 Call @ 1.5 139.23
With this transaction our amount out of pocket is down to $52.20/share. That's good because the ETF has dropped to 52 and change. We are bullish the precious metals and believe that the recent downturn provides a buying opportunity. In fact we have some GDX puts that we wrote at the 52 strike.
It should be noted that before we entered into this trade we actually collected $489.25 in put money which we are not reflecting in these calculations. In any event, if we get called away in February we will make $380 which equates to 6.9% or ~21.1% annual. If we don't get called away then we'll write new calls, with a good hard look being given to the 56 strike again.
10/25/2011 10:37:57 Bought 100 GDX @ 56.7268 -5,682.67
10/25/2011 10:38:30 Sold 1 GDX Oct 28 2011 56.0 Call @ 1.52 141.23
10/27/2011 10:52:44 Bought 1 GDX Oct 28 2011 56.0 Call @ 3 -310.76
10/27/2011 10:53:06 Sold 1 GDX Nov 19 2011 56.0 Call @ 4.1 399.23
11/10/2011 10:11:02 Bought 1 GDX Nov 19 2011 56.0 Call @ 4.6 -470.76
11/10/2011 10:12:04 Sold 1 GDX Dec 17 2011 56.0 Call @ 5.75 564.22
12/19/2011 10:15:55 Sold 1 GDX Feb 18 2012 56.0 Call @ 1.5 139.23
With this transaction our amount out of pocket is down to $52.20/share. That's good because the ETF has dropped to 52 and change. We are bullish the precious metals and believe that the recent downturn provides a buying opportunity. In fact we have some GDX puts that we wrote at the 52 strike.
It should be noted that before we entered into this trade we actually collected $489.25 in put money which we are not reflecting in these calculations. In any event, if we get called away in February we will make $380 which equates to 6.9% or ~21.1% annual. If we don't get called away then we'll write new calls, with a good hard look being given to the 56 strike again.
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