Inital Transaction - Penn West Energy Trust (PWE) (7-21-2009)

I decided to continue tweaking my covered call investment strategy by trying something a little different. In the case of Penn West Energy, which is a oil & gas limited partnership, I am attempting to reap the benefits of option premium as well as the ability of a holder of a call option to exercise said option at any point previous to expiration if the current price is above the strike price. My goal in this situation is that the call will be exercised the day preceding the ex-div date, which will yield a relatively high annualized profit, and if it is not exercised then I can close out the position on the ex-div date, and get the dividend for myself. I will continue to attempt such positions as I find them. The performance metrics are below:

7/21/2009 -- Bought 100 PWE @ 12.79
7/21/2009 -- Sold To Open 1 PWE August $12.50 Call @ 0.6


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 12.19


Potential Gain If Called At Ex-Div Date: 2.13%
Potential Annualized Gain If Called At Ex-Div Date: 129.75%

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)

Update Transaction - Mack-Cali Realty (CLI) (7-16-2009)

This is the final covered call to be sold on my position in CLI. If these shares are called away at expiration I will no longer have any position in CLI. It will be a little sad, considering CLI was a large portion of the CCIP when I started it, but all things must come to an end. I wouldnt have a problem reinvesting in CLI however if it fell back down to the $22.50-$23.50 range in the future. The new profit/loss info is below:

Various -- Bought 100 CLI @ 22.90
2/23/2009 -- Sold To Open 1 CLI July $25 Call @ 0.4592
3/6/2009 -- Bought To Close 1 CLI July $25 Call @ 0.1408
4/1/2009 – CLI Dividend @ .45
4/9/2009 – Sold To Open 1 CLI July $25 Call @ 2.1426
4/24/2009 -- Bought To Close 1 CLI July $25 Call @ 4.9474
4/24/2009 -- Sold To Open 1 CLI June $30 Call @ 1.9325
5/7/2009 -- Bought To Close 1 CLI June $30 Call @ 0.60
5/7/2009 -- Sold To Open 1 CLI June $25 Call @ 1.5926
6/11/2009 -- Bought To Close 1 CLI June $25 Call @ 0.25
7/1/2009 - Dividend @ .45
7/16/2009 - Sold To Open 1 CLI August $25 Call @ 0.9925

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2290.00


Downside Coverage From Current Price: 13.6%
Possible Max Upside: 16.63%

Annualized Max Upside: 33.72%

Closing Transaction - Direxion 3x Financial (FAS) (7-15-2009)

Unfortunately, FAS underwent a 1-5 reverse split this month, which made the 300 shares i had in my portfolio only 60 shares. This makes it impossible for me to continue selling calls on these positions unless I want to increase my stake. As such, I have decided to attempt to exit my positions in FAS as the call options written on them expire. This is the first of such sales. The final profit info is below:

4/17/2009 -- Bought 100 FAS @ 9.745
4/17/2009 -- Sold To Open 1 FAS May $8 Call @ 2.65

5/7/2009 – Bought To Close 1 FAS May $8 Call @ 3.55

5/7/2009 – Sold To Open 1 FAS May $10 Call @ 1.95

5/15/2009 – May $9 Call Expired

5/18/2009 – Sold To Open 1 FAS June $11 Call @ 0.95
6/15/2009 -- Bought To Close 1 FAS June $11 Call @ 0.25
6/15/2009 -- Sold To Open 1 FAS July $11 Call @ 0.90
6/22/2009 -- Bought To Close 1 FAS July $11 Call @ 0.35
6/30/2009 -- Dividend @ 0.01128
7/15/2009 -- Sold 100 FAS @ 49.50 (9.90)


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $974.50

Final Profit (%): 34.76%
Final Profit ($): $246.63

Annualized Profit (%): 142.56%

Update Transaction - AT&T (T) (7-15-2009)

As I have been on vacation for the last week, there will be a barrage of new posts today and tomorrow to update the blog to the most recent activity.

I have decided to start to bite the bullet on some of my positions in the slow-moving high-dividend payers in my portfolio and sell calls which are not that far out of the money, and have relatively low option premiums. I figure I may as well try to make some money off of them while they lag the market, even if it means the position gets called away a little lower than I want it to. I plan to keep the other 100 shares of AT&T uncovered in hope that the stock rises some more, and I can sell a $26 call.

Transaction History:
2/21/2009 -- Additional Stock Purchased -- Bought T @ 23
2/27/2009 -- Sold To Open 1 T April $20 Call @ 3.95
3/10/2009 -- Bought To Close 1 T April $20 Call @ 2.93
3/10/2009 -- Sold to Open 1 T April $25 Call @ .34
3/13/2009 -- Bought To Close 1 T April $25 Call @ .84
3/13/2009 -- Sold To Open 1 T April $26 Call @ .39
4/7/2009 -- AT&T Dividend @ .41
4/17/2009 -- Covered Call Expire
4/20/2009 -- Sold To Open 1 T May $27 @ .43
5/15/2009 -- Covered Call Expire
5/20/2009 -- Sold To Open 1 T Oct $27 @ .65

6/1/2009 -- Bought To Close 1 T Oct $27 @ 0.79

6/1/2009 -- Sold To Open 1 T June $25 @ 0.4
6/19/2009 -- Call Expired
7/8/2009 -- Dividend @ 0.41
7/15/2009 -- Sold To Open 1 T August $25 @ 0.3


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2300.00


Downside Coverage (based on current share price): 17%
Possible Max Upside: 24.51%

Annualized Max Upside: 49.16%

Update Transaction - General Electric (GE)

Today I decided to close out my $12 CSP position in GE for two reasons. Firstly, GE has made its way back above $12 for the first time since mid-June, secondly I unfortunately hold this CSP in my brokerage account which has an arcane method of commissions for executing calls. Instead of charging you a simple transaction fee if your call is in the money at expiration, you are also charged a $19.99 fee for call assigning. A bit ridiculous inmy opinion, but I digress. Just as a note, I would personally recommend Zecco or Interactive Brokers for those of you who want to start your own covered calls portfolio but only have between $10,000 and $100,000, as you will find transaction fees can eat a large chunk of your profits.

I will attempt to sell another CSP in GE after they release they're earnings on friday. Most likely with a $12 strike, unless the stock pops or drops in either direction. The current performance metrics are below:

5/27/2009 -- Sold To Open 1 GE June $12 Put @ 0.32

6/1/2009 -- Bought To Close 1 GE June $12 Put @ 0.11

6/1/2009 -- Sold To Open 1 GE July $12 Put @ 0.4
7/15/2009 -- Bought To Close 1 GE July $12 Put @ 0.3574

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Current Put Sale Profit: $25.26

Closing Transaction - Intel (INTC)

Today I decided to close out my position in Intel a few days earlier after it released a monster earnings report after the market closed yesterday. On top of beating estimates handily the company also gave a better than expected outlook for the latter half of the year. Being that the stock moved 8% on the news, I decided to get out now, since all of the time premium was gone, and I wouldnt be surprised if the market pulls back a little tomorrow, so I wanted to make sure I removed myself from the position. I do however plan to sell a cash-secured put for Intel in august at a strike of $17, if the stock drops back down to the $17.50 range. The final profit/loss info is below:

6/10/2009 -- Bought 100 INTC @ 16.28
6/10/2009 -- Sold To Open 1 INTC July $17 Call @ 0.44
7/15/2009 -- Bought To Close 1 INTC July $17 Call @ 1.05
7/15/2009 -- Sold 100 INTC @ 17.9927


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1584.00


Final Profit: 6.96

Annualized Profit: 74.73

Update Transaction - Alpha Natural Resources (ANR) (7-9-2009)

I successfully executed my strategy with ANR, by buying back the August call, waiting for a rise in the ANR share price, and reselling the call. This has essentially netted me an additional 1% gain if the position is called away at August expiration. Although I dont have high expectations of ANR being called away at expiration, I also do not foresee a share price decrease below $20. The new profit/loss info is below:

5/20/2009 -- Bought 100 ANR @ 29.26
5/20/2009 -- Sold To Open 1 ANR June $32.50 Call @ 1.24
5/20/2009 -- Bought To Open 1 ANR June $20 Put @ .3
5/21/2009 -- Bought To Close 1 ANR June $32.50 Call @ .55
5/22/2009 -- Sold To Open 1 ANR June $27.50 Call @ 1.45
5/27/2009 -- Bought To Close 1 ANR $27.50 Call @ 2.18
5/27/2009 -- Sold To Open 1 ANR $30 June Call @ 1.09
6/16/2009 -- Bought To Close 1 ANR $30 June Call @ 0.15
6/16/2009 -- Bought To Open 1 ANR $20 June Put @ 0.5
6/25/2009 -- Sold To Open 1 ANR $30 August Call @ 1.90
7/6/2009 -- Bought To Close 1 ANR $30 August Call @ 0.5
7/9/2009 -- Sold To Open 1 ANR $30 August Call @ 0.75



The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2926.00
Current Cost Basis: $27.01


Maximum Downside Risk (due to Put): 26%
Downside Coverage: None
Possible Max Upside: 10.67%

Annualized Max Upside: 41.44%

Update Transaction - Mack-Cali Realty (CLI) (7-7-2009)

I decided to sell another covered call on my position in CLI, leaving only 100 shares uncovered. The market is continuing to show signs of deterioration, and I want to give myself some protection. I am choosing to leave my last 100 shares uncovered just in case CLI manages to make it above $23, in which case I will sell a $25 call on the last 100 shares. The profit/loss info is below:


Various -- Bought 100 CLI @ 22.90
2/23/2009 -- Sold To Open 1 CLI July $25 Call @ 0.4592
3/6/2009 -- Bought To Close 1 CLI July $25 Call @ 0.1408
4/1/2009 – CLI Dividend @ .45
4/9/2009 – Sold To Open 1 CLI May $22.5 Call @ 2.8925
5/15/2009 – May $22.5 Call Expired
5/18/2009 – Sold To Open 1 CLI June $22.50 Call @ 1.8925
6/19/2009 - June $22.50 Call Expired
7/1/2009 - Dividend @ .45
7/7/2009 - Sold To Open 1 CLI August $22.50 Call @ 1.1425

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2290.00


Downside Coverage From Current Price: 25.9%
Possible Max Upside: 28.06%

Annualized Max Upside: 56.89%

Update Transaction - Alpha Natural Resources (ANR) (7-6-2009)

ANR continues to oscillate in a very large range between $20 and $27. As a result, it provides an interesting opportunity to sell calls near the high part of the range, and buy them back near the bottom. As such, when ANR hit $22.50 early in the day yesterday, I decided to buy back my August call, and wait for a bounce in ANR over the next few weeks. I plan to sell the August $30 call again once it gets around $0.80, which I would expect to see after about a 6-7% rise in the ANR stock price. I also still retain the July $20 put to cover my downside in case the stock continues to fall. The new profit/loss info is below:

5/20/2009 -- Bought 100 ANR @ 29.26
5/20/2009 -- Sold To Open 1 ANR June $32.50 Call @ 1.24
5/20/2009 -- Bought To Open 1 ANR June $20 Put @ .3
5/21/2009 -- Bought To Close 1 ANR June $32.50 Call @ .55
5/22/2009 -- Sold To Open 1 ANR June $27.50 Call @ 1.45
5/27/2009 -- Bought To Close 1 ANR $27.50 Call @ 2.18
5/27/2009 -- Sold To Open 1 ANR $30 June Call @ 1.09
6/16/2009 -- Bought To Close 1 ANR $30 June Call @ 0.15
6/16/2009 -- Bought To Open 1 ANR $20 June Put @ 0.5
6/25/2009 -- Sold To Open 1 ANR $30 August Call @ 1.90
7/6/2009 -- Bought To Close 1 ANR $30 August Call @ 0.5



The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2926.00
Current Cost Basis: $27.76


Maximum Downside Risk (due to Put): 28%
Downside Coverage: None
Possible Max Upside: Unlimited

Annualized Max Upside: Unlimited

Update Transaction - United States Natural Gas (UNG) (7-17-2009)

UNG has rebounded substantially in the past few days, and as a result I was able to sell an August $15 call. The new profit/loss info is below:

6/10/2009 -- Bought 100 UNG @ 14.50
6/10/2009 -- Sold To Open 1 UNG July $15 Call @ 0.97
7/6/2009 -- Bought To Close 1 UNG July $15 Call @ 0.15
7/17/2009 -- Sold To Open 1 UNG August $15 Call @ 0.45

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1353.00


Downside Coverage (from current price): None
Possible Max Upside: 13.08%

Annualized Max Upside: 66.32%

June 2009 Results

The month of June continued to leave investors and traders wondering where the market will be by the end of the year. It was the fourth month that the CCIP has been in existence, and it was a real test of whether the portfolio could make money in a sideways market. As I have mentioned many times before successful stock picking is very important when the market is oscillating around the same value for a long time. After oscillating between 880 and 920 in the month of May, the S&P 500 has shifted its bounds slightly higher to between 890 and 950 in June. A somewhat disturbing fact for the overall market, though possibly a good thing for covered calls investors is that after hitting a low of around 25 on June 29, the VIX (a measure of the volatility in the market) rebounded to 28 by thursday. This pop is most likely related to the worse than expected job numbers which came out for June.

In my opinion, the market over reacted the these job numbers. For one, they included all of the auto workers who have been idled since GM entered bankruptcy. Secondly, the unemployment rate itself was better than expected. Lastly, it is unrealistic to assume that this recovery will be straight up; there are going to be blips along the way. Over the next few weeks the market will be driven very much so by the earnings reports which start next week. If earnings are mixed to better than expected I think the market will be ok, if they are mostly below expectations, we may be looking at a move back towards 800 if not 700. So lets hope for everyone's sake that this does not happen.

The portfolio continues to beat the market since its inception (by about 14.5%). The chart below presents the monthly performance of the CCIP for June, as well as the performance of the portfolio since inception.

Portfolio Results

The 2009 Since Inception results are as follows:

1. Since Inception Results

CCIP Absolute Return (March 7 through June 30, 2009) = 46.09%

Benchmark S&P 500 (SPY) Absolute Return (March 7 through June 30, 2009) = 31.51%

The CCIP has outperformed the S&P 500 benchmark by a total of 14.58%

July 2009 Next Steps

The month of July is going to be very interesting for both the market and the CCIP portfolio. As earnings season begins, the market is likely to become much more volatile, which could be an advantage for option premium selling, but also cause wild fluctuations in stock prices. In terms of strategy for the CCIP, it is somewhat centered around a current strategy of selling both near month calls as well as 2-month out calls. About half of the current portfolio is in July calls, while half is in August calls. This will make expiration for July much less difficult in terms of finding new positions, but also makes it so that no additional option premiums will be had for many of the positions. This strategy was born mostly out of the fact that quite a few positions in the CCIP had fallen precipitously and so in order to sell a call above the original purchase price, it had to be done for August rather than July.

For those positions in with options expiring in July, much will depend on if the market declines until expiration, because I may face the same issue when it comes to whether to sell August calls or September calls. One thing which will give a boost to the CCIP this month is dividend payments which will tack an additional 1% onto the performance of the CCIP in July.

The strategy for establishing covered calls positions after July expiration will be as follows, and is similar to the rationale for establishing July calls earlier this month, based on the closing price of the S&P 500 on July expiration, July 17, 2009:

If S&P 500 is between 750 and 850, initial earnings reports have most likely been below expectations and the market is moving towards retesting lows. This will likely result in the sale of September calls for positions expiring in July, and possibly the buy back of calls sold for August. As far as new positions go, if there is any cash, I may sell cash-covered puts to buy in at lower prices if the market continues to decline, but still make money if the market rebounds.

If S&P 500 is between 850 and 950, we have most likely survived the first week of earnings without too much of a hitch, and some of the July covered calls should be called away. In this case I will likely establish either covered calls or cash-secured puts depending on which is positioned to yield a greater result.

If S&P 500 is above 950, we have most likely seen better than expected earnings. This would probably result in all the July calls being called away (maybe not Best Buy), and some of the August covered call positions being substantially in the money, which may result in may closing some of the positions, or rolling them up.

Initial Transaction -United States Natural Gas Fund (UNG) (7-2-2009)

I decided to open another position in UNG, after it has decreased more than 15% from its price on June expiration. I still believe that the price of natural gas is hovering around its bottom, and it is only 3% above its 52-week low, which means there is much more potential upside than downside. It has not participated in the run-up of commodity prices since the beginning of March, and is therefore pretty safe in my opinion. As I had a previous position in UNG which was called away at a loss (for the actual stock, though the CCIP position was not a loss), I did not want to create a wash sale by buying new shares within the 30 day window. As a result I decided to instead sell a cash-secured put for August. This put would make my cost basis 6.6% below the current 52-week low. I think this position will end up doing quite well, and I wouldnt be opposed to selling another cash-secured put if UNG decreases further. Just as a note, I believe for those of you who are not covered call investors, that cash-secured puts offer a very interesting way of starting a position in a stock, but possibly lowering your cost basis at the same time. The performance metrics are below:

7/2/2009 -- Sold To Open 1 UNG August $13 Put @ 1.15


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Put Sale Profit: $115.00


Downward Movement Required (Put Sold When UNG@13.04): 0.3%
Possible Max Upside: 8.85%

Annualized Max Upside: 64.58%

Dividend Update - Best Buy (BBY) (7-2-2009)

This is simply an update to the BBY position, showing the passing of an ex-div date. The new profit/loss info is below:

6/12/2009 -- Bought 100 BBY @ 37.54
6/12/2009 -- Sold To Open 1 BBY July $39 Call @ 1.54
6/12/2009 -- Bought To Open 1 BBY June $35 Put @ 0.6
6/18/2009 -- Bought To Close 1 BBY July $39 Call @ 0.50
6/18/2009 -- Sold To Close 1 BBY June $35 Put @ 1.1
6/23/2009 -- Sold To Open 1 BBY July $38 Call @ 0.20
7/2/2009 -- Dividend @ 0.14



The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3660.00


Downside Coverage: None
Possible Max Upside: 6.5%

Annualized Max Upside: 65.9%

Dividend Update - Mack-Cali Realty (CLI) (7-1-2009)

This is simply an update to this position showing the passing of an ex-div date. Although the stock ended up being above $22.50 on the day before the ex-div date it was not called away. There are still two other CLI positions which remain uncovered, I will not be writing separate posts for those positions, but they also received the same dividend. The new profit/loss info is below:


Various -- Bought 100 Shares of CLI @ 21.18
3/2/2009 -- Sold To Open 1 July $22.50 Call @ 1.2225
3/10/2009 -- Bought To Close 1 July $22.50 Call @ 1
4/1/2009 -- Dividend @ 0.45
4/3/2009 -- Sold To Open 1 May $22.50 Call @ 2.50
5/15/2009 -- May $22.50 Expired
5/18/2009 -- Sold To Open 1 June $25 Call @ 0.95
6/19/2009 -- June $25 Call Expired
6/22/2009 -- Sold To Open 1 July $22.50 Call @ 0.75
7/1/2009 -- Dividend @ 0.45

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2118.00


Downside Coverage (based on current price, 23): 31.2%
Possible Max Upside: 33.52%

Annualized Max Upside: 88.66%

Dividend Update - Bristol Myers Squibb (BMY) (7-1-2009)

This is simply a post to note the ex-dividend date for BMY. Just as an update, BMY has dropped about 5% since I sold the August call on June 25, I may buy back the call if it gets down to about 5 cents. The new profit/loss info is below:

4/6/2009 -- Bought 100 BMY @ 20.48
4/6/2009 -- Sold To Open 1 BMY April $21 Call @ .34
4/17/2009 -- Covered Call Expired
4/20/2009 -- Sold To Open 1 BMY May $21 Call @ .65
4/29/2009 -- Bought To Close 1 BMY May $21 Call @ .11
5/12/2009 -- Sold To Open 1 BMY June $21 Call @ .55
5/27/2009 -- Bought To Close 1 BMY June $21 Call @ .18
6/25/2009 -- Sold To Open 1 BMY August $22 Call @ .35
7/1/2009 -- Dividend @ 0.31


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2048.00


Downside Coverage (from current price of $20.14): 7.8%
Possible Max Upside: 17.03%

Annualized Max Upside: 45.05%

Closing Transaction - Mack-Cali Realty (CLI) (6-30-2009)

After a long time waiting, part of my position in CLI has finally been called away due to an ex-div date. This reduces my overall position to 300 shares, and reduces its share of the CCIP portfolio from 23% to 18%, which is still very high, but still better. I may sell a cash-secured put against CLI in the future, if another 100 shares is called away at July expiration. The final profit info is below:


Various -- Bought 100 CLI @ 18.80
3/2/2009 -- Sold To Open 1 CLI July $22.5 Call @ 1.2225
4/1/2009 – CLI Dividend @ .45
4/16/2009 – Bought To Close 1 CLI July $22.5 Call @ 4.45
4/16/2009 – Sold To Open 1 CLI May $25 Call @ 1.7
5/15/2009 – May $25 Call Expired
5/18/2009 – Sold To Open 1 CLI June $22.50 Call @ 2.75
6/19/2009 - June $22.50 Call Expired
6/23/2009 - Sold To Open 1 CLI July $20.00 Call @ 1.70
6/30/2009 - Stock Called @ 20.00

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1880.00


Total Upside: 26.01%

Annualized Max Upside: 79.12%

Update Transaction - Continental Airlines (CAL) (6-25-2009)

After watching Continental continue to stay below the $9 level, I decided that I had waited long enough, and attempting to hold out until a July $11 call reached a good premium was not the best idea. As such I have decided to sell an August $11 call in order to get some premium, but not have to reduce my strike price. Technically the original purchase price of the CAL stock was above $12, so I had always planned to take a loss on the actual stock purchase, but not more than 10-15%. The new profit/loss projections are below:


4/14/2009 -- Bought 100 CAL @ 12.225
4/17/2009 -- Sold To Open 1 CAL May $11 Call @ 2.17
5/15/2009 – May $11 Call Expired
5/18/2009 – Sold To Open 1 CAL June $11 Call @ 1.05
5/27/2009 -- Bought To Close 1 CAL June $11 Call @ 0.3
6/2/2009 -- Sold To Open 1 CAL June $11 Call @ 0.65
6/12/2009 -- Bought To Close 1 CAL June $11 Call @ 0.10
6/25/2009 -- Sold To Open 1 CAL August $11 Call @ 0.50

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1222.50


Downside Coverage From Current Price (8.55): 3.5%
Possible Max Upside: 27.3%

Annualized Max Upside: 76.7%