This is simply an update to the Intel position which notes the passing of the ex-dividend date. The new profit/loss info is below:
10/21/2009 -- Bought 100 INTC @ 19.795
10/21/2009 -- Sold To Open 1 INTC December $19 Call @ 1.14
11/4/2009 -- Dividend @ 0.14
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: $1865.50
Potential Annualized Gain If Called At Expiration (12/19/2009): 14.43%
Downside Protection: 6.5%
Friday, November 6, 2009
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1. I don't know your commissions, but shouldn't your cost basis be closer to $1,955 than $1,755?
ReplyDelete2. Shouldn't your potential ARIE(Annualized Return if Exercised) be closer to:
(Net Income/Original Investment)*(365/31 days)=
{[($1.14-($19.795-$19.00)+$.14 div]/$19.795}+)*(365/31 days)= (($.345+$.14)/$19.795)*(365/31 days)= 28.8% ?
Much nicer than 15.75%!
Best Regards,
Jeff
Jeff,
ReplyDeleteThanks for pointing that mistake out. I have updated the post with the correct information, I normally copy and past previous posts when putting in new positions, so I keep the format the same, and I forgot to change some values.
Jake