Opened (AKS) Feb 2009 covered calls position for AK STEEL HLDG CO

A new covered calls position was established on December 30, 2008 with purchase of 2000 shares of "AK STEEL HLDG CO (AKS).

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081230, AKS, 2000, 8.85, 17700, 20090220, 7.50, 2.20, 4400, 13300)

Detailed Information

Stock Leg (Buy)

• Stock ticker = AKS
  
• Company name = "AK STEEL HLDG CO"
  
• Number of shares bought = 2000
  
• Price per share = 8.85
  
• Total money spent = 17700

Option Leg (Sell)

• Call Symbol = ASJBU
  
• Strike date = 20090220
  
• Strike price = 7.50
  
• Number of calls sold = 20
  
• Premium per call = 2.20
  
• Total call premium received = 4400
  

Transaction

• Total money out = (17700 - 4400) = 13300
• Initial investment = 13300
  

Returns (If calls get exercised)

• Absolute returns = 15000 (strike price * num_shares) - 13300 (Initial investment) = 1700
  
• Percentage returns = (absolute returns/initial investment * 100) = 12.78%
• Max. number of days position will be open = 20090220 (strike date) - 20081229 (transaction date) = 53
  
• Annual percentage returns (Normalized returns over 365 days) = (12.78 * 365 / 53) = 88.01%

Break Even Information

• Break-even point = 13300 (Initial investment)
• Break-even buffer percentage = 8.85 (current price) - 6.65 (break even point/num_shares))/8.85 * 100) = 24.86% [This means that this position can wither a 24.86% drop in stock's price before losing any money).
  

Date (position established): 2008/12/30

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Opened (PLD) Feb 2009 covered calls position for Prologis SBI

A new covered calls position was established on December 30, 2008 with purchase of 2000 shares of "Prologis SBI" (PLD).

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081230, PLD, 2000, 12.36, 24720, 20090220, 10.0, 3.50, 7000, 17720)

Detailed Information

Stock Leg (Buy)

• Stock ticker = PLD
  
• Company name = "Prologis SBI"
  
• Number of shares bought = 2000
  
• Price per share = 12.36
  
• Total money spent = 24720

Option Leg (Sell)

• Call Symbol = PADBB
  
• Strike date = 20090220
  
• Strike price = 10.0
  
• Number of calls sold = 20
  
• Premium per call = 3.50
  
• Total call premium received = 7000
  

Transaction

• Total money out = (24720 - 7000) = 17720
• Initial investment = 17720
  

Returns (If calls get exercised)

• Absolute returns = 20000 (strike price * num_shares) - 17720 (Initial investment) = 2280
  
• Percentage returns = (absolute returns/initial investment * 100) = 12.87%
• Max. number of days position will be open = 20090220 (strike date) - 20081229 (transaction date) = 53
  
• Annual percentage returns (Normalized returns over 365 days) = (12.78 * 365 / 53) = 88.63%

Break Even Information

• Break-even point = 17720 (Initial investment)
• Break-even buffer percentage = 12.36 (current price) - 8.86 (break even point/num_shares))/8.86 * 100) = 28.32% [This means that this position can wither a 28.32% drop in stock's price before losing any money).
  

Date (position established): 2008/12/30

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established (M) Feb 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081229, M, 2000, 8.89, 17780, 20090220, 7.5, 2.20, 4400, 13380)

Detailed Information

Stock Leg (Buy)

• Stock ticker = M
  
• Company name = "Macy's Inc"
  
• Number of shares bought = 2000
  
• Price per share = 8.89
  
• Total money spent = 17780
  

Option Leg (Sell)

• Call Symbol = MBU
  
• Strike date = 20090220
  
• Strike price = 7.5
  
• Number of calls sold = 20
  
• Premium per call = 2.20
  
• Total call premium received = 4400
  

Transaction

• Total money out = (17780- 4400) = 13380
• Initial investment = 13380
  

Returns (If calls get exercised)

• Absolute returns = 15000 (strike price * num_shares) - 13380 (Initial investment) = 1620
  
• Percentage returns = (absolute returns/initial investment * 100) = 12.11%
• Max. number of days position will be open = 20090220 (strike date) - 20081229 (transaction date) = 54
  
• Annual percentage returns (Normalized returns over 365 days) = (12.11 * 365 / 54) = 81.85%

Break Even Information

• Break-even point = 13380 (Initial investment)
• Break-even buffer percentage = 8.89 (current price) - 6.69 (break even point/num_shares))/8.89 * 100) = 24.75% [This means that this position can wither a 24.75% drop in stock's price before losing any money).
  

Date (position established): 2008/12/29

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established PRU Mar 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081226, PRU, 1000, 26.55, 26550, 20090320, 20, 9.40, 9400, 17150)

Detailed Information

Stock Leg (Buy)

• Stock ticker = PRU
  
• Company name = "Prudential Financial Inc."
  
• Number of shares bought = 1000
  
• Price per share = 26.55
  
• Total money spent = 26550
  

Option Leg (Sell)

• Call Symbol = PRUCX
  
• Strike date = 20090320
  
• Strike price = 20
  
• Number of calls sold = 10
• Premium per call = 9.40
  
• Total call premium received = 9400
  

Transaction

• Total money out = (26550 - 9400) = 17150
  
• Initial investment = 17150
  

Returns (If calls get exercised)

• Absolute returns = 20000 (strike price * num_shares) - 17150 (Initial investment) = 2850
  
• Percentage returns = (absolute returns/initial investment * 100) = 16.62%
• Max. number of days position will be open = 20090320 (strike date) - 20081226 (transaction date) = 85
  
• Annual percentage returns (Normalized returns over 365 days) = (16.62 * 365 / 85) = 71.36%

Break Even Information

• Break-even point = 17150 (Initial investment)/1000 (num_shares) = 17.15
  
• Break-even buffer percentage = (26.55 (current price) - 17.15 (break even point))/26.55 * 100) = 35.40% [This means that this position can wither a 35.40% drop in stock's price before losing any money).
  

Date (position established): 2008/12/26

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established UAUA Mar 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081226, UAUA, 2000, 10.51, 21020, 20090320, 7.50, 4.20, 8400, 12620)

Detailed Information

Stock Leg (Buy)

• Stock ticker = UAUA
  
• Company name = "UAL Corporation"
  
• Number of shares bought = 2000
  
• Price per share = 10.51
  
• Total money spent = 21020
  

Option Leg (Sell)

• Call Symbol = UALCU
  
• Strike date = 20090320
  
• Strike price = 7.50
  
• Number of calls sold = 20
• Premium per call = 4.20
  
• Total call premium received = 8400
  

Transaction

• Total money out = (21020 - 8400) = 12620
  
• Initial investment = 12620
  

Returns (If calls get exercised)

• Absolute returns = 15000 (strike price * num_shares) - 12620 (Initial investment) = 2380
  
• Percentage returns = (absolute returns/initial investment * 100) = 18.86%
• Max. number of days position will be open = 20090320 (strike date) - 20081226 (transaction date) = 85
  
• Annual percentage returns (Normalized returns over 365 days) = (18.86 * 365 / 85) = 80.98%

Break Even Information

• Break-even point = 12620 (Initial investment)/2000 (num_shares) = 6.31
  
• Break-even buffer percentage = (10.51 (current price) - 6.31 (break even point))/10.51 * 100) = 39.96% [This means that this position can wither a 39.96% drop in stock's price before losing any money).
  

Date (position established): 2008/12/26

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established WFT Feb 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081226, WFT, 2000, 9.3, 18600, 20090220, 7.5, 2.50, 5000, 13600)

Detailed Information

Stock Leg (Buy)

• Stock ticker = WFT
  
• Company name = "Weatherford International Ltd"
  
• Number of shares bought = 2000
  
• Price per share = 9.30
  
• Total money spent = 18600
  

Option Leg (Sell)

• Call Symbol = WFTBP
  
• Strike date = 20090220
  
• Strike price = 7.5
  
• Number of calls sold = 20
  
• Premium per call = 2.50
  
• Total call premium received = 5000
  

Transaction

• Total money out = (18600- 5000) = 13600
• Initial investment = 13600
  

Returns (If calls get exercised)

• Absolute returns = 15000 (strike price * num_shares) - 13600 (Initial investment) = 1400
  
• Percentage returns = (absolute returns/initial investment * 100) = 10.29%
• Max. number of days position will be open = 20090220 (strike date) - 20081224 (transaction date) = 57
  
• Annual percentage returns (Normalized returns over 365 days) = (10.29 * 365 / 57) = 65.89%

Break Even Information

• Break-even point = 13600 (Initial investment)
• Break-even buffer percentage = 9.30 (current price) - 6.80 (break even point/num_shares))/9.30 * 100) = 26.88% [This means that this position can wither a 26.88% drop in stock's price before losing any money).
  

Date (position established): 2008/12/26

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established BTU Jan 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081226, BTU, 1000, 21.75, 21750, 20090116, 20, 3.0, 3000, 18750)

Detailed Information

Stock Leg (Buy)

• Stock ticker = BTU
  
• Company name = "Peabody Energy Corp."
  
• Number of shares bought = 1000
  
• Price per share = 21.75
  
• Total money spent = 21750
  

Option Leg (Sell)

• Call Symbol = BNUAD
  
• Strike date = 20090116
  
• Strike price = 20
  
• Number of calls sold = 10
  
• Premium per call = 3.0
  
• Total call premium received = 3000
  

Transaction

• Total money out = (21750 - 3000) = 18750
  
• Initial investment = 18750
  

Returns (If calls get exercised)

• Absolute returns = 20000 (strike price * num_shares) - 18750 (Initial investment) = 1250
  
• Percentage returns = (absolute returns/initial investment * 100) = 6.67%
• Max. number of days position will be open = 20090116 (strike date) - 20081224 (transaction date) = 22
  
• Annual percentage returns (Normalized returns over 365 days) = (8.75 * 365 / 22) = 110.66%

Break Even Information

• Break-even point = 18750 (Initial investment)
• Break-even buffer percentage = 21.75 (current price) - 18.75 (break even point/num_shares))/21.75 * 100) = 13.79% [This means that this position can wither a 13.79% drop in stock's price before losing any money).
  

Date (position established): 2008/12/26

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established ZION Jan 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081226, ZION, 1000, 22.09, 22090, 20090116, 20, 3.70, 3700, 18390)

Detailed Information

Stock Leg (Buy)

• Stock ticker = ZION
  
• Company name = "Zions Bancorp."
  
• Number of shares bought = 1000
  
• Price per share = 22.09
  
• Total money spent = 22090
  

Option Leg (Sell)

• Call Symbol = ZNQAU
  
• Strike date = 20090116
  
• Strike price = 20
  
• Number of calls sold = 10
  
• Premium per call = 3.70
  
• Total call premium received = 3700
  

Transaction

• Total money out = (22090 - 3700) = 18390
  
• Initial investment = 18390
  

Returns (If calls get exercised)

• Absolute returns = 20000 (strike price * num_shares) - 18390 (Initial investment) = 1610
  
• Percentage returns = (absolute returns/initial investment * 100) = 8.75%
• Max. number of days position will be open = 20090116 (strike date) - 20081224 (transaction date) = 22
  
• Annual percentage returns (Normalized returns over 365 days) = (8.75 * 365 / 22) = 145.17%

Break Even Information

• Break-even point = 18390 (Initial investment)
• Break-even buffer percentage = 22.09 (current price) - 18.39 (break even point/num_shares))/22.09 * 100) = 16.74% [This means that this position can wither a 16.74% drop in stock's price before losing any money).
  

Date (position established): 2008/12/26

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established MCO Feb 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081224, MCO, 1000, 20.88, 20880, 20090220, 17.5, 4.90, 4900, 15980)

Detailed Information

Stock Leg (Buy)

• Stock ticker = MCO
  
• Company name = "Moody's Corp"
  
• Number of shares bought = 1000
  
• Price per share = 20.88
  
• Total money spent = 20880
  

Option Leg (Sell)

• Call Symbol = MCOBW
  
• Strike date = 20090220
  
• Strike price = 17.5
  
• Number of calls sold = 10
  
• Premium per call = 4.90
  
• Total call premium received = 4900
  

Transaction

• Total money out = (20880- 4900) = 15980
• Initial investment = 15980
  

Returns (If calls get exercised)

• Absolute returns = 17500 (strike price * num_shares) - 15980 (Initial investment) = 1520
  
• Percentage returns = (absolute returns/initial investment * 100) = 9.51%
• Max. number of days position will be open = 20090220 (strike date) - 20081224 (transaction date) = 59
  
• Annual percentage returns (Normalized returns over 365 days) = (11.23 * 365 / 59) = 42.71%

Break Even Information

• Break-even point = 15980 (Initial investment)
• Break-even buffer percentage = 20.88 (current price) - 15.98 (break even point/num_shares))/20.88 * 100) = 23.47% [This means that this position can wither a 23.47% drop in stock's price before losing any money).
  

Date (position established): 2008/12/24

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established TSO Feb 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081224, TSO, 2000, 11.89, 23780, 20090220, 10, 2.90, 5800, 17980)

Detailed Information

Stock Leg (Buy)

• Stock ticker = TSO
  
• Company name = "Tesoro Corp"
  
• Number of shares bought = 2000
  
• Price per share = 11.89
  
• Total money spent = 23780
  

Option Leg (Sell)

• Call Symbol = TSOBY
  
• Strike date = 20090220
  
• Strike price = 10
  
• Number of calls sold = 20
  
• Premium per call = 2.90
  
• Total call premium received = 5800
  

Transaction

• Total money out = (23780- 5800) = 17980
• Initial investment = 17980
  

Returns (If calls get exercised)

• Absolute returns = 20000 (strike price * num_shares) - 17980 (Initial investment) = 2020
  
• Percentage returns = (absolute returns/initial investment * 100) = 11.23%
• Max. number of days position will be open = 20090220 (strike date) - 20081224 (transaction date) = 59
  
• Annual percentage returns (Normalized returns over 365 days) = (11.23 * 365 / 59) = 69.47%

Break Even Information

• Break-even point = 17980 (Initial investment)
• Break-even buffer percentage = 11.89 (current price) - 8.99 (break even point/num_shares))/11.89 * 100) = 24.39% [This means that this position can wither a 24.39% drop in stock's price before losing any money).
  

Date (position established): 2008/12/24

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established ROH Jan 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081224, ROH, 500, 63.88, 31940, 20090116, 45, 22.60, 11300, 20640)

Detailed Information

Stock Leg (Buy)

• Stock ticker = ROH
  
• Company name = "ROHM HAAS CO."
  
• Number of shares bought = 500
  
• Price per share = 63.88
  
• Total money spent = 31940
  

Option Leg (Sell)

• Call Symbol = ROHAI
  
• Strike date = 20090116
  
• Strike price = 45
  
• Number of calls sold = 5
  
• Premium per call = 22.60
  
• Total call premium received = 11300
  

Transaction

• Total money out = (31940 - 11300) = 20640
• Initial investment = 20640
  

Returns (If calls get exercised)

• Absolute returns = 22500 (strike price * num_shares) - 20640 (Initial investment) = 1860
  
• Percentage returns = (absolute returns/initial investment * 100) = 9.01%
• Max. number of days position will be open = 20090116 (strike date) - 20081224 (transaction date) = 24
  
• Annual percentage returns (Normalized returns over 365 days) = (5.14 * 365 / 25) = 137.03%

Break Even Information

• Break-even point = 20640 (Initial investment)
• Break-even buffer percentage = 63.88 (current price) - 41.28 (break even point/num_shares))/63.88 * 100) = 35.38% [This means that this position can wither a 35.38% drop in stock's price before losing any money).
  

Date (position established): 2008/12/24

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established YHOO Jan 2009 covered calls position

Here are the details of the position.

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081224, YHOO, 2000, 12.32, 24640, 20090116, 11, 1.93, 3860, 20780)

Detailed Information

Stock Leg (Buy)

• Stock ticker = YHOO
  
• Company name = "Yahoo Inc."
  
• Number of shares bought = 2000
  
• Price per share = 12.32
  
• Total money spent = 24640
  

Option Leg (Sell)

• Call Symbol = YHQAK
  
• Strike date = 20090116
  
• Strike price = 11
  
• Number of calls sold = 20
• Premium per call = 1.93
  
• Total call premium received = 3860
  

Transaction

• Total money out = (24640 - 3860) = 20780
• Initial investment = 20780
  

Returns (If calls get exercised)

• Absolute returns = 22000 (strike price * num_shares) - 20780 (Initial investment) = 1220
  
• Percentage returns = (absolute returns/initial investment * 100) = 5.87%
• Max. number of days position will be open = 20090116 (strike date) - 20081224 (transaction date) = 24
  
• Annual percentage returns (Normalized returns over 365 days) = (5.14 * 365 / 25) = 89.27%

Break Even Information

• Break-even point = 20780 (Initial investment)
• Break-even buffer percentage = 12.32 (current price) - 10.39 (break even point))/12.32 * 100) = 15.67% [This means that this position can wither a 15.67% drop in stock's price before losing any money).
  

Date (position established): 2008/12/24

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established BIDU Mar 2009 covered calls position

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081223, BIDU, 200, 123.33, 24666, 20090320, 85, 44.9, 8980, 15686)

Detailed Information

Stock Leg (Buy)

• Stock ticker = BIDU
  
• Company name = "BAIDU COM INC SPON ADR REP A"
  
• Number of shares bought = 200
  
• Price per share = 123.33
  
• Total money spent = 24666
  

Option Leg (Sell)

• Call Symbol = BDQCQ
  
• Strike date = 20090320
  
• Strike price = 85
  
• Number of calls sold = 2
• Premium per call = 44.9
  
• Total call premium received = 8980
  

Transaction

• Total money out = (24666 - 8980) = 15686
  
• Initial investment = 15686
  

Returns (If calls get exercised)

• Absolute returns = 17000 (strike price * num_shares) - 15686 (Initial investment) = 1314
  
• Percentage returns = (absolute returns/initial investment * 100) = 8.38%
• Max. number of days position will be open = 20090320 (strike date) - 20081223 (transaction date) = 88
  
• Annual percentage returns (Normalized returns over 365 days) = (8.38 * 365 / 88) = 34.76%

Break Even Information

• Break-even point = 15686 (Initial investment)/200 (num_shares) = 78.43
  
• Break-even buffer percentage = (123.33 (current price) - 78.43 (break even point))/123.33 * 100) = 36.41% [This means that this position can wither a 36.41% drop in stock's price before losing any money).
  

Date (position established): 2008/12/23

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established NOV Feb 2009 covered calls position

Here are the details of the position.

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081223, NOV, 1000, 22.21, 22210, 20090220, 17.5, 6.1, 6100, 16110)

Detailed Information

Stock Leg (Buy)

• Stock ticker = NOV
  
• Company name = "National Oilwell Varco Inc."
  
• Number of shares bought = 1000
  
• Price per share = 22.21
  
• Total money spent = 22210
  

Option Leg (Sell)

• Call Symbol = NOVBW
  
• Strike date = 20090220
  
• Strike price = 17.5
  
• Number of calls sold = 10
• Premium per call = 6.10
  
• Total call premium received = 6100
  

Transaction

• Total money out = (22210 - 6100) = 16110
• Initial investment = 16110
  

Returns (If calls get exercised)

• Absolute returns = 17500 (strike price * num_calls) - 16110 (Initial investment) = 1390
  
• Percentage returns = (absolute returns/initial investment * 100) = 8.63%
• Max. number of days position will be open = 20090220 (strike date) - 20081223 (transaction date) = 60
  
• Annual percentage returns (Normalized returns over 365 days) = (8.63 * 365 / 60) = 52.5%

Break Even Information

• Break-even point = 16110 (Initial investment)
• Break-even buffer percentage = (22.21 (current price) - 16.11 (break even point))/22.21 * 100) = 27.47% [This means that this position can wither a 37.86% drop in stock's price before losing any money).
  

Date (position established): 2008/12/23

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established AIZ Jan 2009 covered calls position

Here are the details of the position.

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081223, AIZ, 1000, 26.2, 26200, 20090116, 22.5, 4.8, 4800, 21400)

Detailed Information

Stock Leg (Buy)

• Stock ticker = AIZ
  
• Company name = "Assurant Inc."
  
• Number of shares bought = 1000
  
• Price per share = 26.2
  
• Total money spent = 26200
  

Option Leg (Sell)

• Call Symbol = AIZAX
  
• Strike date = 20090116
  
• Strike price = 22.5
  
• Number of calls sold = 10
• Premium per call = 4.80
  
• Total call premium received = 4800
  

Transaction

• Total money out = (26200 - 4800) = 21400
• Initial investment = 21400
  

Returns (If calls get exercised)

• Absolute returns = 22500 (strike price * num_calls) - 21400 (Initial investment) = 1100
  
• Percentage returns = (absolute returns/initial investment * 100) = 5.14%
• Max. number of days position will be open = 20090116 (strike date) - 20081223 (transaction date) = 25
  
• Annual percentage returns (Normalized returns over 365 days) = (5.14 * 365 / 25) = 75.04%

Break Even Information

• Break-even point = 21400 (Initial investment)
• Break-even buffer percentage = (26.2 (current price) - 21.4 (break even point))/26.2 * 100) = 18.32% [This means that this position can wither a 18.32% drop in stock's price before losing any money).
  

Date (position established): 2008/12/23

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Established PRU Jan 2009 covered calls position

Here are the details of the position.

Quick Summary
(date, ticker, num_shares, price per share, shares money out, strike date, strike price, premium, options money in, total money out) = (20081222, PRU, 1000, 26.35, 26350, 20090116, 20, 7.4, 7400, 18950)

Detailed Information

Stock Leg (Buy)

• Stock ticker = PRU
  
• Company name = "Prudential Financial Inc."
  
• Number of shares bought = 1000
  
• Price per share = 26.35
  
• Total money spent = 26350
  

Option Leg (Sell)

• Call Symbol = PRUAX
  
• Strike date = 20090116
  
• Strike price = 20.0
  
• Number of calls sold = 10
• Premium per call = 7.40
  
• Total call premium received = 7400
  

Transaction

• Total money out = (26350 - 7400) = 18950
• Initial investment = 18950
  

Returns (If calls get exercised)

• Absolute returns = 20000 (strike price * num_calls) - 18950 (Initial investment) = 1050
  
• Percentage returns = (absolute returns/initial investment * 100) = 5.54%
• Max. number of days position will be open = 20090116 (strike date) - 20081222 (transaction date) = 26
  
• Annual percentage returns (Normalized returns over 365 days) = (5.54 * 365 / 26) = 77.77%

Break Even Information

• Break-even point = 18950 (Initial investment)
• Break-even buffer percentage = (26.35 (current price) - 18.95 (break even point))/26.35 * 100) = 28.08% [This means that this position can wither a 28.08% drop in stock's price before losing any money).
  

Date (position established): 2008/12/22

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till $20 (strike price) is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.