Initial Transaction - Bristol-Myers Squibb (BMY) (10/29/2009)

After my position in COP was called away on October 28, I decided to enter a similar type of return position with a November expiration. This position is in Bristol Myers Squibb, a pharmaceutical company which had a place in the CCIP from April until July this year. Since running up to above $22 in July right before expiration, the stock has been relatively flat. I believe that pharmaceuticals offer a unique investment in the healthcare space, as the effect on them from upcoming health care legislation should already be priced into the stock as that section of the bill has essentially been written for months. Additionally, the stock pays a great dividend, and has traded in a relatively tight range for much of the last year. I chose to enter a current month call position as I am considering slightly altering my current strategy to utilize high dividend stocks and slightly ITM or slightly OTM calls. The new profit/loss info is below:

10/29/2009 -- Bought 200 BMY @ 22.2025
10/29/2009 -- Sold To Open 2 BMY November $22 Call @ 0.5625


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $4328.00


Downside Coverage (from current price of $22.2025): 2.5%
Possible Max Upside: 1.52%

Annualized Max Upside: 24.17%