Opened (WFC) January 2009 covered call position for WELLS FARGO & CO

A new covered calls position was established on January 7, 2009 with purchase of 1000 shares of "WELLS FARGO & CO " (WFC). Here are the details.

• Transaction Date = 20090107
• Ticker = (WFC)
• Company Name = WELLS FARGO & CO

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 25.87
• Total money spent = 25870.0

Option Leg (Sell)

• Call Symbol = WFCAH
• Number of sold calls = 10
• Strike price = 24.0
• Strike date = 20090116
• Call premium = 2.8
• Total money received = 2800.0
• Max. days for which position may stay open = 10

Return on investment (If calls are exercised)

• Initial investment = 23070.0
• Absolute return = 930.0
• Percentage return = 4.03%
• Annualized percentage return = 147.09%

Break even Information

• Break even price point = 23.07
• Break even buffer percentage = 10.82%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 25.87 * 1000 = 25870.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 2.8 = 2800.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 25870.0 - 2800.0 = 23070.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 10 * 100 * 24.0 = 24000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 24000.0 - 23070.0 = 930.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (930.0/23070.0) = 4.03%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 4.03 * 365/10 = 147.09%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 23070.0 / 1000 = 23.07
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (25.87 - 23.07) / 25.87 = 10.82%
This means that this position can weather a 10.82% 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 (AA) January 2009 covered call position for ALCOA INC

A new covered calls position was established on January 7, 2009 with purchase of 2000 shares of "ALCOA INC" (AA). Here are the details.

• Transaction Date = 20090107
• Ticker = (AA)
• Company Name = ALCOA INC

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 10.89
• Total money spent = 21780.0

Option Leg (Sell)

• Call Symbol = AAAB
• Number of sold calls = 20
• Strike price = 10.0
• Strike date = 20090116
• Call premium = 1.25
• Total money received = 2500.0
• Max. days for which position may stay open = 10

Return on investment (If calls are exercised)

• Initial investment = 19280.0
• Absolute return = 720.0
• Percentage return = 3.73%
• Annualized percentage return = 136.14%

Break even Information

• Break even price point = 9.64
• Break even buffer percentage = 11.47%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 10.89 * 2000 = 21780.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 1.25 = 2500.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 21780.0 - 2500.0 = 19280.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 20 * 100 * 10.0 = 20000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 20000.0 - 19280.0 = 720.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (720.0/19280.0) = 3.73%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 3.73 * 365/10 = 136.14%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 19280.0 / 2000 = 9.64
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (10.89 - 9.64) / 10.89 = 11.47%
This means that this position can weather a 11.47% 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 (ROH) January 2009 covered call position for ROHM HAAS CO

A new covered calls position was established on January 5, 2009 with purchase of 400 shares of "ROHM HAAS CO" (ROH). Here are the details.

• Transaction Date = 20090105
• Ticker = (ROH)
• Company Name = ROHM HAAS CO

Stock Leg (Buy)

• Number of shares purchased = 400
• Price per share = 63.82
• Total money spent = 25528.0

Option Leg (Sell)

• Call Symbol = ROHAK
• Number of sold calls = 4
• Strike price = 55.0
• Strike date = 20090116
• Call premium = 12.0
• Total money received = 4800.0
• Max. days for which position may stay open = 12

Return on investment (If calls are exercised)

• Initial investment = 20728.0
• Absolute return = 1272.0
• Percentage return = 6.13%
• Annualized percentage return = 186.45%

Break even Information

• Break even price point = 51.82
• Break even buffer percentage = 18.8%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 63.82 * 400 = 25528.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 4 * 100 * 12.0 = 4800.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 25528.0 - 4800.0 = 20728.0

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 - 20728.0 = 1272.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1272.0/20728.0) = 6.13%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 6.13 * 365/12 = 186.45%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 20728.0 / 400 = 51.82
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (63.82 - 51.82) / 63.82 = 18.8%
This means that this position can wither a 18.8% 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 (GNW) January 2009 covered call position for GENWORTH FINANCIA

A new covered calls position was established on January 5, 2009 with purchase of 5000 shares of "GENWORTH FINANCIA" (GNW). Here are the details.

• Transaction Date = 20090105
• Ticker = (GNW)
• Company Name = GENWORTH FINANCIA

Stock Leg (Buy)

• Number of shares purchased = 5000
• Price per share = 2.83
• Total money spent = 14150.0

Option Leg (Sell)

• Call Symbol = GNWAZ
• Number of sold calls = 50
• Strike price = 2.5
• Strike date = 20090116
• Call premium = 0.5
• Total money received = 2500.0
• Max. days for which position may stay open = 12

Return on investment (If calls are exercised)

• Initial investment = 11650.0
• Absolute return = 850.0
• Percentage return = 7.29%
• Annualized percentage return = 221.73%

Break even Information

• Break even price point = 2.33
• Break even buffer percentage = 17.66%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 2.83 * 5000 = 14150.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 50 * 100 * 0.5 = 2500.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 14150.0 - 2500.0 = 11650.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 50 * 100 * 2.5 = 12500.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 12500.0 - 11650.0 = 850.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (850.0/11650.0) = 7.29%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 7.29 * 365/12 = 221.73%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 11650.0 / 5000 = 2.33
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (2.83 - 2.33) / 2.83 = 17.66%
This means that this position can wither a 17.66% 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.

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 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 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.