Opened (AMZN) February 2009 covered call position for Amazon.com, Inc.

A new covered calls position was established on January 29, 2009 with purchase of 600 shares of "Amazon.com, Inc." (AMZN). Here are the details.

• Transaction Date = 20090129
• Ticker = (AMZN)
• Company Name = Amazon.com, Inc.

Stock Leg (Buy)

• Number of shares purchased = 600
• Price per share = 50.0
• Total money spent = 30000.0

Option Leg (Sell)

• Call Symbol = ZQNBI
• Number of sold calls = 6
• Strike price = 45.0
• Strike date = 20090220
• Call premium = 7.1
• Total money received = 4260.0
• Max. days for which position may stay open = 23

Return on investment (If calls are exercised)

• Initial investment = 25740.0
• Absolute return = 1260.0
• Percentage return = 4.89%
• Annualized percentage return = 77.6%

Break even Information

• Break even price point = 42.9
• Break even buffer percentage = 14.19%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 50.0 * 600 = 30000.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 6 * 100 * 7.1 = 4260.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 30000.0 - 4260.0 = 25740.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 6 * 100 * 45.0 = 27000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 27000.0 - 25740.0 = 1260.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1260.0/25740.0) = 4.89%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 4.89 * 365/23 = 77.6%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 25740.0 / 600 = 42.9
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (50.0 - 42.9) / 50.0 = 14.19%
This means that this position can weather a 14.19% drop in stock's price before losing any money.

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 (AAPL) February 2009 covered call position for Apple Inc.

A new covered calls position was established on January 21, 2009 with purchase of 300 shares of "Apple Inc." (AAPL). Here are the details.

• Transaction Date = 20090121
• Ticker = (AAPL)
• Company Name = Apple Inc.

Stock Leg (Buy)

• Number of shares purchased = 300
• Price per share = 82.83
• Total money spent = 24849.0

Option Leg (Sell)

• Call Symbol = QAABP
• Number of sold calls = 3
• Strike price = 80.0
• Strike date = 20090220
• Call premium = 7.4
• Total money received = 2220.0
• Max. days for which position may stay open = 31

Return on investment (If calls are exercised)

• Initial investment = 22629.0
• Absolute return = 1371.0
• Percentage return = 6.05%
• Annualized percentage return = 71.23%

Break even Information

• Break even price point = 75.43
• Break even buffer percentage = 8.93%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 82.83 * 300 = 24849.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 3 * 100 * 7.4 = 2220.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 24849.0 - 2220.0 = 22629.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 3 * 100 * 80.0 = 24000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 24000.0 - 22629.0 = 1371.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1371.0/22629.0) = 6.05%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 6.05 * 365/31 = 71.23%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 22629.0 / 300 = 75.43
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (82.83 - 75.43) / 82.83 = 8.93%
This means that this position can weather a 8.93% drop in stock's price before losing any money.

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 (MET) February 2009 covered call position for METLIFE INC

A new covered calls position was established on January 20, 2009 with purchase of 1000 shares of "METLIFE INC" (MET). Here are the details.

• Transaction Date = 20090120
• Ticker = (MET)
• Company Name = METLIFE INC

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 23.82
• Total money spent = 23820.0

Option Leg (Sell)

• Call Symbol = METBD
• Number of sold calls = 10
• Strike price = 20.0
• Strike date = 20090220
• Call premium = 5.6
• Total money received = 5600.0
• Max. days for which position may stay open = 32

Return on investment (If calls are exercised)

• Initial investment = 18220.0
• Absolute return = 1780.0
• Percentage return = 9.76%
• Annualized percentage return = 111.32%

Break even Information

• Break even price point = 18.22
• Break even buffer percentage = 23.5%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 23.82 * 1000 = 23820.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 5.6 = 5600.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 23820.0 - 5600.0 = 18220.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 10 * 100 * 20.0 = 20000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 20000.0 - 18220.0 = 1780.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1780.0/18220.0) = 9.76%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 9.76 * 365/32 = 111.32%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 18220.0 / 1000 = 18.22
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (23.82 - 18.22) / 23.82 = 23.5%
This means that this position can weather a 23.5% drop in stock's price before losing any money.

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 (WFR) February 2009 covered call position for MEMC ELECTRONIC M

A new covered calls position was established on January 13, 2009 with purchase of 2000 shares of "MEMC ELECTRONIC M" (WFR). Here are the details.

• Transaction Date = 20090113
• Ticker = (WFR)
• Company Name = MEMC ELECTRONIC M

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 14.78
• Total money spent = 29560.0

Option Leg (Sell)

• Call Symbol = CJCBV
• Number of sold calls = 20
• Strike price = 12.5
• Strike date = 20090220
• Call premium = 3.2
• Total money received = 6400.0
• Max. days for which position may stay open = 39

Return on investment (If calls are exercised)

• Initial investment = 23160.0
• Absolute return = 1840.0
• Percentage return = 7.94%
• Annualized percentage return = 74.31%

Break even Information

• Break even price point = 11.58
• Break even buffer percentage = 21.65%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 14.78 * 2000 = 29560.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 3.2 = 6400.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 29560.0 - 6400.0 = 23160.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 20 * 100 * 12.5 = 25000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 25000.0 - 23160.0 = 1840.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1840.0/23160.0) = 7.94%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 7.94 * 365/39 = 74.31%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 23160.0 / 2000 = 11.58
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (14.78 - 11.58) / 14.78 = 21.65%
This means that this position can weather a 21.65% drop in stock's price before losing any money.

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 (SNDK) February 2009 covered call position for SanDisk Corporati

A new covered calls position was established on January 9, 2009 with purchase of 2000 shares of "SanDisk Corporati" (SNDK). Here are the details.

• Transaction Date = 20090109
• Ticker = (SNDK)
• Company Name = SanDisk Corporati

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 12.3
• Total money spent = 24600.0

Option Leg (Sell)

• Call Symbol = SWQBM
• Number of sold calls = 20
• Strike price = 11.0
• Strike date = 20090220
• Call premium = 2.42
• Total money received = 4840.0
• Max. days for which position may stay open = 43

Return on investment (If calls are exercised)

• Initial investment = 19760.0
• Absolute return = 2240.0
• Percentage return = 11.33%
• Annualized percentage return = 96.17%

Break even Information

• Break even price point = 9.88
• Break even buffer percentage = 19.67%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 12.3 * 2000 = 24600.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 2.42 = 4840.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 24600.0 - 4840.0 = 19760.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 20 * 100 * 11.0 = 22000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 22000.0 - 19760.0 = 2240.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2240.0/19760.0) = 11.33%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 11.33 * 365/43 = 96.17%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 19760.0 / 2000 = 9.88
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (12.3 - 9.88) / 12.3 = 19.67%
This means that this position can weather a 19.67% drop in stock's price before losing any money.

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 (JWN) February 2009 covered call position for NORDSTROM INC

A new covered calls position was established on January 9, 2009 with purchase of 2000 shares of "NORDSTROM INC" (JWN). Here are the details.

• Transaction Date = 20090109
• Ticker = (JWN)
• Company Name = NORDSTROM INC

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 13.96
• Total money spent = 27920.0

Option Leg (Sell)

• Call Symbol = JWNBV
• Number of sold calls = 20
• Strike price = 12.5
• Strike date = 20090220
• Call premium = 2.45
• Total money received = 4900.0
• Max. days for which position may stay open = 43

Return on investment (If calls are exercised)

• Initial investment = 23020.0
• Absolute return = 1980.0
• Percentage return = 8.6%
• Annualized percentage return = 73.0%

Break even Information

• Break even price point = 11.51
• Break even buffer percentage = 17.55%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 13.96 * 2000 = 27920.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 2.45 = 4900.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 27920.0 - 4900.0 = 23020.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 20 * 100 * 12.5 = 25000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 25000.0 - 23020.0 = 1980.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1980.0/23020.0) = 8.6%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 8.6 * 365/43 = 73.0%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 23020.0 / 2000 = 11.51
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (13.96 - 11.51) / 13.96 = 17.55%
This means that this position can weather a 17.55% drop in stock's price before losing any money.

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 (FCX) February 2009 covered call position for FREEPORT MCMORAN

A new covered calls position was established on January 8, 2009 with purchase of 1000 shares of "FREEPORT MCMORAN " (FCX). Here are the details.

• Transaction Date = 20090108
• Ticker = (FCX)
• Company Name = FREEPORT MCMORAN

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 29.25
• Total money spent = 29250.0

Option Leg (Sell)

• Call Symbol = FCXBE
• Number of sold calls = 10
• Strike price = 25.0
• Strike date = 20090220
• Call premium = 6.0
• Total money received = 6000.0
• Max. days for which position may stay open = 44

Return on investment (If calls are exercised)

• Initial investment = 23250.0
• Absolute return = 1750.0
• Percentage return = 7.52%
• Annualized percentage return = 62.38%

Break even Information

• Break even price point = 23.25
• Break even buffer percentage = 20.51%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 29.25 * 1000 = 29250.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 6.0 = 6000.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 29250.0 - 6000.0 = 23250.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 10 * 100 * 25.0 = 25000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 25000.0 - 23250.0 = 1750.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1750.0/23250.0) = 7.52%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 7.52 * 365/44 = 62.38%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 23250.0 / 1000 = 23.25
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (29.25 - 23.25) / 29.25 = 20.51%
This means that this position can weather a 20.51% drop in stock's price before losing any money.

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 (FMCN) February 2009 covered call position for Focus Media Holdi

A new covered calls position was established on January 8, 2009 with purchase of 2000 shares of "Focus Media Holdi" (FMCN). Here are the details.

• Transaction Date = 20090108
• Ticker = (FMCN)
• Company Name = Focus Media Holdi

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 8.99
• Total money spent = 17980.0

Option Leg (Sell)

• Call Symbol = FUOBU
• Number of sold calls = 20
• Strike price = 7.5
• Strike date = 20090220
• Call premium = 2.05
• Total money received = 4100.0
• Max. days for which position may stay open = 44

Return on investment (If calls are exercised)

• Initial investment = 13880.0
• Absolute return = 1120.0
• Percentage return = 8.06%
• Annualized percentage return = 66.86%

Break even Information

• Break even price point = 6.94
• Break even buffer percentage = 22.8%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 8.99 * 2000 = 17980.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 2.05 = 4100.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 17980.0 - 4100.0 = 13880.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 20 * 100 * 7.5 = 15000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 15000.0 - 13880.0 = 1120.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1120.0/13880.0) = 8.06%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 8.06 * 365/44 = 66.86%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 13880.0 / 2000 = 6.94
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (8.99 - 6.94) / 8.99 = 22.8%
This means that this position can weather a 22.8% drop in stock's price before losing any money.

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 (ICE) February 2009 covered call position for INTERCNTNTLEXCHAN

A new covered calls position was established on January 7, 2009 with purchase of 400 shares of "INTERCNTNTL EXCHAN" (ICE). Here are the details.

• Transaction Date = 20090107
• Ticker = (ICE)
• Company Name = INTERCNTNTLEXCHAN

Stock Leg (Buy)

• Number of shares purchased = 400
• Price per share = 64.08
• Total money spent = 25632.0

Option Leg (Sell)

• Call Symbol = ICEBK
• Number of sold calls = 4
• Strike price = 55.0
• Strike date = 20090220
• Call premium = 13.4
• Total money received = 5360.0
• Max. days for which position may stay open = 45

Return on investment (If calls are exercised)

• Initial investment = 20272.0
• Absolute return = 1728.0
• Percentage return = 8.52%
• Annualized percentage return = 69.1%

Break even Information

• Break even price point = 50.68
• Break even buffer percentage = 20.91%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 64.08 * 400 = 25632.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 4 * 100 * 13.4 = 5360.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 25632.0 - 5360.0 = 20272.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 4 * 100 * 55.0 = 22000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 22000.0 - 20272.0 = 1728.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1728.0/20272.0) = 8.52%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 8.52 * 365/45 = 69.1%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 20272.0 / 400 = 50.68
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (64.08 - 50.68) / 64.08 = 20.91%
This means that this position can weather a 20.91% drop in stock's price before losing any money.

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 (CNX) February 2009 covered call position for CONS ENERGY INC

A new covered calls position was established on January 5, 2009 with purchase of 800 shares of "CONS ENERGY INC" (CNX). Here are the details.

• Transaction Date = 20090105
• Ticker = (CNX)
• Company Name = CONS ENERGY INC

Stock Leg (Buy)

• Number of shares purchased = 800
• Price per share = 34.87
• Total money spent = 27896.0

Option Leg (Sell)

• Call Symbol = CNXBF
• Number of sold calls = 8
• Strike price = 30.0
• Strike date = 20090220
• Call premium = 7.2
• Total money received = 5760.0
• Max. days for which position may stay open = 47

Return on investment (If calls are exercised)

• Initial investment = 22136.0
• Absolute return = 1864.0
• Percentage return = 8.42%
• Annualized percentage return = 65.38%

Break even Information

• Break even price point = 27.67
• Break even buffer percentage = 20.64%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 34.87 * 800 = 27896.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 8 * 100 * 7.2 = 5760.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 27896.0 - 5760.0 = 22136.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 8 * 100 * 30.0 = 24000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 24000.0 - 22136.0 = 1864.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1864.0/22136.0) = 8.42%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 8.42 * 365/47 = 65.38%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 22136.0 / 800 = 27.67
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (34.87 - 27.67) / 34.87 = 20.64%
This means that this position can wither a 20.64% drop in stock's price before losing any money.

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 (CHK) February 2009 covered call position for CHESAPEAKE ENERGY

A new covered calls position was established on January 2, 2009 with purchase of 1000 shares of "CHESAPEAKE ENERGY" (CHK). Here are the details.

• Transaction Date = 20090102
• Ticker = (CHK)
• Company Name = CHESAPEAKE ENERGY

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 16.92
• Total money spent = 16920.0

Option Leg (Sell)

• Call Symbol = CHKBC
• Number of sold calls = 10
• Strike price = 15.0
• Strike date = 20090220
• Call premium = 3.1
• Total money received = 3100.0
• Max. days for which position may stay open = 50

Return on investment (If calls are exercised)

• Initial investment = 13820.0
• Absolute return = 1180.0
• Percentage return = 8.53%
• Annualized percentage return = 62.26%

Break even Information

• Break even price point = 13.82
• Break even buffer percentage = 18.32%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 16.92 * 1000 = 16920.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 3.1 = 3100.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 16920.0 - 3100.0 = 13820.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 10 * 100 * 15.0 = 15000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 15000.0 - 13820.0 = 1180.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1180.0/13820.0) = 8.53%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 8.53 * 365/50 = 62.26%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 13820.0 / 1000 = 13.82
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (16.92 - 13.82) / 16.92 = 18.32%
This means that this position can wither a 18.32% drop in stock's price before losing any money.

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 (AVB) February 2009 covered call position for AVALONBAY CMTYS

A new covered calls position was established on January 2, 2009 with purchase of 400 shares of "AVALONBAY CMTYS" (AVB). Here are the details.

• Transaction Date = 20090102
• Ticker = (AVB)
• Company Name = AVALONBAY CMTYS

Stock Leg (Buy)

• Number of shares purchased = 400
• Price per share = 61.26
• Total money spent = 24504.0

Option Leg (Sell)

• Call Symbol = AZBBJ
• Number of sold calls = 4
• Strike price = 50.0
• Strike date = 20090220
• Call premium = 15.2
• Total money received = 6080.0
• Max. days for which position may stay open = 50

Return on investment (If calls are exercised)

• Initial investment = 18424.0
• Absolute return = 1576.0
• Percentage return = 8.55%
• Annualized percentage return = 62.41%

Break even Information

• Break even price point = 46.06
• Break even buffer percentage = 24.81%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 61.26 * 400 = 24504.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 4 * 100 * 15.2 = 6080.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 24504.0 - 6080.0 = 18424.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 4 * 100 * 50.0 = 20000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 20000.0 - 18424.0 = 1576.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1576.0/18424.0) = 8.55%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 8.55 * 365/50 = 62.41%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 18424.0 / 400 = 46.06
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (61.26 - 46.06) / 61.26 = 24.81%
This means that this position can wither a 24.81% drop in stock's price before losing any money.

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 (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 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 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 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.