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%