As the last 100 shares of AT&T in my portfolio managed to not be called away on friday, I quickly sold another $26 covered call resulting in a guaranteed 2% gain for the next month for this position. I will not re-enter this position as a monthly covered call position in the future, though I may as part of my longer term covered call strategy. The new profit/loss info is below:
Transaction History:
Various -- Bought 100 T @ 25.125
2/25/2009 -- Sold To Open 1 T March $24 Call @ 0.895
3/6/2009 -- Bought To Close 1 T March $24 Call @ 0.3874
4/7/2009 -- Dividend @ 0.41
4/16/2009 -- Sold To Open 1 T May $26 Call @ 0.8126
5/15/2009 -- Call Expired
7/8/2009 -- Dividend @ 0.41
7/23/2009 -- Sold To Open 1 T August $26 Call @ 0.4
8/21/2009 -- Call Expired OTM
8/24/2009 -- Sold To Open 1 TSeptember $26 Call @ 0.53
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2512.50
Current Cost Average: $22.05
Downside Coverage (based on current share price, 26.00): 15.2%
Possible Max Upside: 16.28%
Annualized Max Upside: 28.85%
No comments:
Post a Comment