Initial Transaction - ConocoPhillips (COP) (8-13-2009)

As part of the constant revision of my covered call investment strategy, this position is intended to provide a potential yield of at least 10%, and also have the possibility of being called away at two different points. The stock could be called before the first ex-dividend date, or at expiration. The lowest annualized return is above 10% for any of these scenarios. Additionally, the call being sold is substantially ITM, and relatively far out expiration. Lastly, the stock provides a hefty dividend for both additional protection and income. This position is in ConocoPhillips an integrated oil & gas company which has a hefty 5% dividend. The profit/loss info is below:

8/13/2009 -- Bought 100 COP @ 43.93
8/13/2009 -- Sold To Open 1 COP January $39 Call @ 6.49

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 3759.00

Potential Annualized Gain If Called At First Ex-Div Date (~10/29/2009): 17.85%

Potential Annualized Gain If Called At Expiration (1/16/2010): 14.69%

Downside Protection: 14.4%