July 2009 Expiration Day

The Covered Calls Investor Portfolio contained a total of 4 positions with July 2009 expirations, and 13 positions either with a Non-July expiration or no current covered call. The 4 positions with July expiration had the following results:

- 3 positions (CLI, COP, GE) closed in-the-money. The calls were exercised and the stock was sold. This was not surprising to me as many of my positions had decreased substantially in July and wouldve had to rally upwards of 10% from their bottoms in the month to hit their strikes. However, these two positions did provide a good amount of cash for investing. Additionally, my cash position had already risen to about 10% of the CCIP by expiration. The annualized gain/loss results (after commissions) were:

Mack-Cali Realty => +112.74%
United States Natural Gas => +88.48%
General Electric => +49.77%


- 1 positions in the portfolio (BBY) ended out-of-the-money. Best Buy has made quite a comeback since its fall after releasing earnings, but still has a ways to go to get back to my cost basis.


Best Buy (BBY) - $36.18
100 Shares with Current Cost Basis of $35.66

This position will be kept, due to the fact that it is the primary electronics retailer in the US, and although some may believe Walmart is beginning to encroach on Best Buy's customers I believe that the consumers are more likely to make big ticket purchases such as new TV's and stereos at a store which is targeted specifically for that application. Although I am of the opinion that Best Buy's employees are not the best when it comes to product knowledge they are significantly better than Walmart. Lastly, the recent Apple earnings show that computers are being purchased, and whether a consumer chooses a Mac or a PC, they can get it at Best Buy.


The positions in the portfolio which did not have June expirations include:

Mack-Cali Realty (CLI) (200 Shares) - No Current Coverage

AT&T (T) (200 Shares) - No Current Coverage

Bristol-Myers Squibb (BMY) - August $22 Covered Call

Best Buy (BBY) - No Current Coverage

Continental Airlines (CAL) - August $11 Covered Call

Alpha Natural Resources (ANR) - August $30 Covered Call

United States Natural Gas (UNG) - August $15 Covered Call, August $13 CSP

Regency Centers (REG) - August $30 Covered Call

Direxion 3x Financial Bull (FAS) - August $10 Covered Call (Pre-Split)