Initial Transaction - Lockheed Martin (LMT) (8/25/2009)

To continue my recent ex-dividend date CC strategy, I opened a position in Lockheed-Martin (LMT) an aerospace defense contractor. Lockheed took quite a hit in July after releasing disappointing earnings, and has been stuck around $75 since then. The stock sports a nice 3% dividend and is not generally considered very volatile. The ex-dividend date is a few days after the purchase date, and could present a nice return if called. The new profit/loss info is below:

8/25/2009 -- Bought 100 LMT @ 74.30
8/25/2009 -- Sold To Open 1 LMT September $75 Call @ 1.30

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 7300.00

Potential Gain If Called At Ex-Div Date: 2.62%
Potential Annualized Gain If Called At Ex-Div Date: 319.31%

Potential Gain If Called At Expiration: 3.52%
PotentialAnnualized Gain If Called At Expiration: 51.40%

Dividend Payment - McGraw-Hill (MHP) (8/24/2009)

For better or worse, MHP was not ITM at close the day before its ex-dividend date. As such the position was not called away, and the dividend was paid. The new profit/loss info is below:

8/21/2009 -- Bought 100 MHP @ 29.66
8/21/2009 -- Sold To Open 1 MHP September $30 Call @ 0.86
8/24/2009 -- Dividend @ 0.23

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 2890.00

Potential Gain If Called At Expiration: 4.57%
PotentialAnnualized Gain If Called At Expiration: 57.49%

Update Transaction - United States Natural Gas (UNG) (8/24/2009)

In what I think is considered by most to be a continued fall of natural gas prices, UNG has become quite the laggard in the CCIP portfolio. On top of the horrible performance of natural gas prices, UNG itself is creating issues by its inability to offer new shares. This is actually a good thing in the short term because it keeps the price of UNG somewhat boosted above actual natural gas prices. Unfortunately, this also creates the possibility that if UNG is able to offer new shares, the ETF could fall 15% to make up for its current premium to NAV. As such, I have adopted a strategy of simply trying to gain as much option premium in the mean time. I expect to be stuck in this position for at least 6 months. The performance metrics are below:

7/2/2009 -- Sold To Open 1 UNG August $13 Put @ 1.15
8/21/2009 -- Stock Purchase @ $13
8/24/2009 -- Sold To Open 1 UNG October $13 Call @ 0.60


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Purchase Price: $1190.00

Possible Max Upside: 15.04%

Annualized Max Upside: 51.32%

Initial Transaction - Intel (INTC) (8/24/2009)

This position is along the same lines as the position I recently opened in ConocoPhilips. The purpose is not necessarily to provide giant annualized gains (i.e. 50%+) as other positions in the past have, but instead it is intended to provide quality downside coverage, a possible dividend to enhance returns, and a return which would be considered more than enough by many. This position is in Intel, which I have held before in the portfolio, and has been relatively stagnant since I exited the position after they crushed earnings a couple months ago. The profit/loss info is below:

8/24/2009 -- Bought 100 INTC @ 18.92
8/24/2009 -- Sold To Open 1 INTC October $18 Call @ 1.50

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: $1747.00

Potential Annualized Gain If Called At Expiration (10/17/2009): 17.15%

Downside Protection: 7.9%

Initial Transaction - SPY Call (8/24/2009)

This is part of a new strategy I am enlisting in what is essentially becoming less like a strictly covered call portfolio and more like a hedge fund. But the focus will remain substantially on covered calls. This position is an attempt to deal with an issue that affects most covered calls portfolios, which is the inability to perform as well as the overall market, when the market is rising a substantial amount (more than 4-5%) a month. I feel that the covered call portfolio has and will perform well when the market is decreasing, but it requires a little "pick me up" when the market is on a tear. In order to counter this, I have purchased 1 SPY (an ETF which tracks the S&P 500) call about 4% OTM, in order to give myself additional upside if the market continues its rise, but only risk about .33% of my total portfolio on this endeavor. If the market does not rise more than 4%, stays flat or falls, I only lose about $150. If on the other hand, the market goes up 6% in the month, I will enhance my returns. The purchase info is below:

8/24/2009 -- Bought 1 $106 SPY September Call @ 1.35

Update Transaction - Intrepid Potash (IPI) (8/24/2009)

Intrepid Potash has stayed in a relatively tight range since I purchase it at the end of July. Earnings were in line with expectations and they had no real impact on the share price. It is important to note though that IPI has not participated in the overall market gains for the month of august. Due to the longer time period until expiration, I was able to sell a $28 Call as opposed to $27 like the previous month, and still get about a 3% premium. The performance metrics are below:

7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45
8/21/2009 -- Call Expired
8/24/2009 -- Sold To Open 1 IPI $28 September Call @ 0.7


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00
Current Cost Average: $24.91

Downside Coverage (from current price of $26.27): 5.17%
Possible Max Upside: 12.28%

Annualized Max Upside: 87.90%

Update Transaction - AT&T (T) (8-24-2009)

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%

August 2009 Expiration Day (8-21-2009)

The Covered Calls Investor Portfolio contained a total of 10 positions with August 2009 expirations, and 4 positions either with a Non-August expiration or no current covered call. The 10 positions with August expiration had the following results:

- 6 positions (T, BMY, FAS, CAL, UNG, PWE) closed in-the-money. The calls were exercised and the stock was sold. Most of these positions had been heavily ITM for quite a while so it was not surprising that they were called away. The only dissapoint in this group was the UNG CSP which was executed resulting in my purchase of the stock for $13. The annualized gain/loss results (after commissions) were:

AT&T => 49.41%
Bristol-Myers => 33.47%
Direxion 3x Financial Bull => 143.08%
Continental Airlines => 75.84%
United States Natural Gas => N/A because put was assigned, resulting in purchase of stock
Penn-West Energy => 37.67%


- 4 positions in the portfolio (UNG, UNG, IPI, T) ended out-of-the-money. AT&T managed to close exactly at its strike of $26 but was not called away.


United States Natural Gas (UNG) - $11.35
100 Shares with Current Cost Basis of $13.23

This position will be kept, mostly due to the fact that it is currently sporting about a 20% loss, and also the fact that natural gas remains at all-time lows. The only issue with this position is that due to caps being placed on positions in commodity futures, UNG has begun to trade at a premium to its NAV, effectively becoming a closed end fund which means it will not track the price of natural gas very well anymore. As a result it is unlikely I will continue to establish positions in the fund.

United States Natural Gas (UNG) - $11.35
100 Shares with Current Cost Basis of $11.90

See above for perspective.

Intrepid Potash (IPI) - $25.88
100 Shares with Current Cost Basis of $25.61

I will continue to hold this position, and sell another call for september. The fundamentals remain strong, and in my opinion the hypothesis surrounding the rebound in potash prices come next year remains to be true.

AT&T (T) - $26
100 Shares with Current Cost Basis of $22.59

Although I was attempting to exit my positions in AT&T, the covered call managed to not be called away. This isnt a disaster because AT&T still sports an attractive yield, and I can make another 1-2% for next month on it by selling another call.


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

Buckle (BKE) (100 Shares) - September $30 Covered Call

Conoco Phillips (COP) (100 Shares) - January $39 Covered Call

McGraw-Hill (MHP) (100 Shares) - September $30 Covered Call

Best Buy (BBY) (100 Shares) - September $39 Covered Call

Initial Transaction - McGraw Hill (MHP) (8-21-2009)

After considering a CC in MHP for the past few months, I finally decided to take the plunge due to the passing of an ex-dividend date. This position is being established as both part of my ex-dividend date CC strategy, as well as just being a good covered call position overall. McGraw Hill is most well known for providing textbooks to the masses, but it is also the company behind Standard & Poors. They sport a quality dividend, and have essentially been treading water at $30 per share for months. The new profit/loss info is below:

8/21/2009 -- Bought 100 MHP @ 29.66
8/21/2009 -- Sold To Open 1 MHP September $30 Call @ 0.86

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 2890.00

Potential Gain If Called At Ex-Div Date: 3.81%
Potential Annualized Gain If Called At Ex-Div Date: 463.09%

Potential Gain If Called At Expiration: 4.57%
PotentialAnnualized Gain If Called At Expiration: 57.49%

Closing Transaction - Marathon Oil (MRO) (8-15-2009)

Unlike the first position I opened to test my new dividend strategy (PWE), for this position (MRO), the plan was successful in that the stock was called away the day before the ex-dividend date. The profit/loss info is below:

8/7/2009 -- Bought 100 MRO @ 30.70
8/7/2009 -- Sold To Open 1 MRO August $30 Call @ 1.07
8/15/2009 -- Sold 100 MRO @ 30.00

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 2963.00

Final Profit: 1.25%
Final Annualized Profit: 49.92%

Closing Transaction - Regency Centers (REG) (8-15-2009)

The stock was called away the day before its ex-dividend date as it was about 10% ITM. Sadly this was the first CCIP position to ever be sold for a loss. The final profit/loss info is below:

6/22/2009 -- Bought 100 Shares of REG @ 34.025
6/22/2009 -- Sold To Open 1 July $35.00 Call @ 1.41
7/17/2009 -- Bought To Close 1 July $35.00 Call @ 0.14
7/17/2009 -- Sold To Open 1 August $35 Call @ 0.49
7/17/2009 -- Bought 1 Put Option Aug $30 @ 1.85
7/17/2009 -- Sold 1 Put Option Aug $30 @ 2.10
7/17/2009 -- Bought To Close 1 August $35 Call @0.4
7/17/2009 -- Sold To Open 1 August $30 Call @ 1.55
8/25/2009 -- Sold 100 Shares of REG @ 29.995


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3261.50

Total Profit/Loss: -2.95%

Annualized Profit/Loss: -19.95%

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%

Continuing Transaction - Best Buy (BBY) (8/12/2009)

As I was going to be going on vacation out of the country the following week, I decided to roll this call forward to September, as well as raising the strike price. 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
7/18/2009 -- Call Expired
7/20/2009 -- Sold To Open 1 BBY August $38 Call @ 0.65
8/12/2009 -- Bought To Close 1 BBY August $38 Call @ 0.6
8/12/2009 -- Sold To Open 1 BBY September $39 Call @ 1.20

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

Downside Coverage: 5.57%
Possible Max Upside: 12.75%

Annualized Max Upside: 47.01%

Closing Transaction - Alpha Natural Resources (ANR) (8/13/2009)

As the market has improved, ANR has skyrocketed to the point where there was essentially no time premium left on it. As a result I decided to exit the position early in order to get some more cash, and also lock in my gains so as to protect myself in case of a pullback. The final 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
7/28/2009 -- Bought To Open 1 ANR $27.5 August Put @ 0.60
8/13/2009 -- Call Bought - Stock Sold @ 29.90


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

Final Upside: 8.29%

Annualized Max Upside: 35.62%

Initial Transaction - Marathon Oil (MRO) (8-7-2009)

This position is another example of the ex-dividend date covered call option strategy which I am testing. The idea with these is to purchase a stock a few days before an ex-dividend date, and sell a covered call for the current month which is as much in the money as possible, but will still return at least 1% if called before the ex-dividend date. Marathon Oil is an integrated oil company which participates in all parts of the oil supply chain, both upstream and downstream. The stock has about a 5% dividend yield which will be valuable even if the position is not called away. The profit/loss info is below:

8/7/2009 -- Bought 100 MRO @ 30.70
8/7/2009 -- Sold To Open 1 MRO August $30 Call @ 1.07

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 2963.00

Potential Gain If Called At Ex-Div Date: 1.25%
Potential Annualized Gain If Called At Ex-Div Date: 45.58%

Initial Transaction - Buckle (BKE) (8-7-2009)

I decided to open a position in a retailer as a way to cash in on the coming turnaround in consumer discretionary spending. Buckle is a medium-priced retailer of mostly denim apparel for teens and young adults. The store focuses mainly on selling jeans, both their own brand, as well as other brands such as rockin' republic and big star are some examples. After releasing same-store sales for July, the stock dropped by about 15%, which allowed a perfect entry point in my opinion. The store has such high expectations that it would have been almost impossible for them to be met in the current economic climate. Same store sales were expected to be 10%, and they only came in at 2% which led to the stock plummet. In my opinion however, the fact that the sales are still increasing are the important part, and the stock also sports a 3% dividend yield which is quite unusual for a growing retailer. As such I decided to establish a covered call position for September. The new profit/loss info is below:

8/7/2009 -- Bought 100 BKE @ 26.70
8/7/2009 -- Sold To Open 1 BKE $30 September Call @ 0.70

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2635.00

Downside Coverage: 2.62%
Possible Max Upside: 13.66%

Annualized Max Upside: 115.97%

Closing Transaction - Mack-Cali Realty (CLI) (8-4-2009)

This is closing info for my other position in Mack-Cali realty. 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
8/4/2009 -- Bought To Close/Sold 100 CLI @ 22.322

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


Final Profit: 15.30%

Annualized Max Upside: 34.26%

Closing Transaction - Mack-Cali Realty (CLI) (8/5/2009)

Unfortunately, I had very bad timing in the case of Mack-Cali Realty, in that I sold a call right before the stock decided to jump 35% in three weeks. As a result my remaining positions were both heavily in the money, and I decided to close them out early to free up some cash. The final 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
8/5/2009 - Bought To Close/Sold 100 CLI @ 24.7019


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


Final Profit: 27.26%

Annualized Max Upside: 61.42%

Initial Transaction - Intrepid Potash (IPI) (7-30-2009)

With the economy beginning to turn around in earnest, and the stock market refusing to go through a correction, I decided to take the plunge and start using some of the 30% cash position I have established over the past week or two. The first position I am going to open is in Intrepid Potash (IPI) which is a small potash supplier (otherwise known as fertilizer) to farmers around the world. Potash prices have plummeted over the past year, and similar to natural gas, are most likely about as low as the can go. Potash is also something which cannot be withheld from farming for more than 18 months without having a bad impact on the crop yields. As a result the possibility for a spike in potash demand is very likely over the next year. The only potential problem with this trade is that the market is due for a correction, and IPI is releasing earnings before expiration. As a result I have decided to collar my position, but still get a hefty return if called at expiration. The performance metrics are below:

7/30/2009 -- Bought 100 IPI @ 26.70
7/30/2009 -- Sold To Open 1 IPI $27 August Call @ 1.54
7/30/2009 -- Bought To Open 1 IPI $22 August Put @ 0.45


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2561.00

Maximum Risk: 14%
Downside Coverage: 4.08%
Possible Max Upside: 5.23%

Annualized Max Upside: 83.03%

Dividend Update - Penn-West Energy (PWE) (7-29-2009)

This is simply an update to this position for a recent dividend update. Unfortunately, the position was not called away before the ex-div so I will be holding it until expiration barring any unforeseen substantial increase in share price. 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
7/29/2009 -- Dividend @ 0.13


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


Maximum Potential Upside: 3.2%

Potential Annualized Gain: 36.49%

Update Transaction - Alpha Natural Resources (ANR) (7-28-2009)

After an amazing jump in ANR's share price over the last couple weeks, I decided to buy a protective put to manage my downside risk. One would normally consider this odd, as the ANR has been as much as $4 (~11%) above my covered call strike price, however, there still remained an additional $1 of time premium to be worked out. For this reason, I decided to buy a put as opposed to close out the position completely. ANR has been an extremely volatile stock falling as low as $22 in the past few weeks, and now rising to $34. If ANR does make it to August expiration above $30, then I have decreased by potential gain by about 2%, but greatly lowered my downside risk. 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
7/28/2009 -- Bought To Open 1 ANR $27.5 August Put @ 0.60


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: $27.61


Maximum Downside Risk (due to Put): 0.4%
Possible Max Upside: 8.53%

Annualized Max Upside: 33.12%

Initial Transaction - United States Natural Gas Fund (UNG) (7-23-2009)

I decided to open a third position in UNG, after a brief decline from a recent high around $14. I still believe that natural gas can only stay this low for so long. Please read my previous post for purchase rationalization. I will add one caveat here, that UNG is facing some recent regulatory issues involving capping the amount of natural gas futures it can hold, which has caused the fund to have to invest in more risky ways to track the natural gas price. As a result, I may not acquire any more of UNG until this is figured out. The performance metrics are below:

7/23/2009 -- Bought 100 UNG @ 13.14
7/23/2009 -- Sold To Open 1 UNG July $13 Call @ 0.88

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


Downside Coverage: 6.69%
Possible Max Upside: 5.25%

Annualized Max Upside: 66.09%

Closing Transaction - Direxion 3x Financial (FAS) (7-23-2009)

After FAS had quite a run-up since its reverse split, I decided to exit this position in order to free-up some cash to possibly enter new positions. As has been the case with all of my other FAS positions this one again yielded quite fantastic annualized returns. With the new share price of FAS, I am unsure if I will continue to use it in the CCIP, because any position I held would be about 20% of my total portfolio, which is a little to much exposure for me at the moment. I may try employing a new strategy such as a bullish put spread (selling a put 5-10% below the current price, and buying a put 15-20% below the current price). The final profit info is below:

5/21/2009 -- Bought 100 FAS @ 9.045
5/21/2009 -- Sold To Open 1 FAS June $10 Call @ 0.86
5/21/2009 -- Bought To Open 1 FAS June $8 Put @ 1
6/19/2009 -- Covered Call & Put Expired
6/22/2009 -- Sold To Open 1 FAS July $10 Call @ 0.5
6/30/2009 -- Dividend @ 0.01128
7/18/2009 -- Covered Call Expired
7/23/2009 -- Sold 100 FAS @ 9.938


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $904.50

Final Profit: 15.4%

Annualized Max Upside: 89.5%

Update Transaction - Bristol-Myers Squibb (BMY) (7-23-2009)

After a recent run-up in the price of BMY, I decided to roll my August call down to a lower strike in order to exit the position. Although BMY has provided consistent movement between $19 and $21, it simply does not provide the type of returns I am looking for at this moment. If it is called away at August expiration, I would consider selling a $20 or $21 cash-secured put on it to get back in at a later time as it does provide a very nice dividend yield. 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 @ 0.34
4/17/2009 -- Covered Call Expired
4/20/2009 -- Sold To Open 1 BMY May $21 Call @ 0.65
4/29/2009 -- Bought To Close 1 BMY May $21 Call @ 0.11
5/12/2009 -- Sold To Open 1 BMY June $21 Call @ 0.55
5/27/2009 -- Bought To Close 1 BMY June $21 Call @ 0.18
6/25/2009 -- Sold To Open 1 BMY August $22 Call @ 0.35
7/1/2009 -- Dividend @ 0.31
7/23/2009 -- Bought To Close 1 BMY August $22 Call @ 0.17
7/23/2009 -- Sold To Open 1 BMY August $21 Call @ 0.32


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 $20.86): 11.7%
Possible Max Upside: 12.81%

Annualized Max Upside: 33.88%