Opened (BAC) March 2009 covered call position for BK OF AMERICA CP

A new covered calls position was established on February 11, 2009 with purchase of 5000 shares of "BK OF AMERICA CP" (BAC). Here are the details.

• Transaction Date = 20090211
• Ticker = (BAC)
• Company Name = BK OF AMERICA CP

Stock Leg (Buy)

• Number of shares purchased = 5000
• Price per share = 6.07
• Total money spent = 30350.0

Option Leg (Sell)

• Call Symbol = BYOCD
• Number of sold calls = 50
• Strike price = 4.0
• Strike date = 20090320
• Call premium = 2.49
• Total money received = 12450.0
• Max. days for which position may stay open = 38

Return on investment (If calls are exercised)

• Initial investment = 17900.0
• Absolute return = 2100.0
• Percentage return = 11.73%
• Annualized percentage return = 112.66%

Break even Information

• Break even price point = 3.58
• Break even buffer percentage = 41.02%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 6.07 * 5000 = 30350.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 50 * 100 * 2.49 = 12450.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 30350.0 - 12450.0 = 17900.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 50 * 100 * 4.0 = 20000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 20000.0 - 17900.0 = 2100.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2100.0/17900.0) = 11.73%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 11.73 * 365/38 = 112.66%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 17900.0 / 5000 = 3.58
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (6.07 - 3.58) / 6.07 = 41.02%
This means that this position can weather a 41.02% 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 (TXT) March 2009 covered call position for TEXTRON INC

A new covered calls position was established on February 11, 2009 with purchase of 4000 shares of "TEXTRON INC" (TXT). Here are the details.

• Transaction Date = 20090211
• Ticker = (TXT)
• Company Name = TEXTRON INC

Stock Leg (Buy)

• Number of shares purchased = 4000
• Price per share = 6.76
• Total money spent = 27040.0

Option Leg (Sell)

• Call Symbol = TXYCA
• Number of sold calls = 40
• Strike price = 5.0
• Strike date = 20090320
• Call premium = 2.25
• Total money received = 9000.0
• Max. days for which position may stay open = 38

Return on investment (If calls are exercised)

• Initial investment = 18040.0
• Absolute return = 1960.0
• Percentage return = 10.86%
• Annualized percentage return = 104.31%

Break even Information

• Break even price point = 4.51
• Break even buffer percentage = 33.28%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 6.76 * 4000 = 27040.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 40 * 100 * 2.25 = 9000.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 27040.0 - 9000.0 = 18040.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 40 * 100 * 5.0 = 20000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 20000.0 - 18040.0 = 1960.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1960.0/18040.0) = 10.86%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 10.86 * 365/38 = 104.31%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 18040.0 / 4000 = 4.51
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (6.76 - 4.51) / 6.76 = 33.28%
This means that this position can weather a 33.28% 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 (STT) March 2009 covered call position for STATE STREET CP

A new covered calls position was established on February 2, 2009 with purchase of 1000 shares of "STATE STREET CP" (STT). Here are the details.

• Transaction Date = 20090202
• Ticker = (STT)
• Company Name = STATE STREET CP

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 23.51
• Total money spent = 23510.0

Option Leg (Sell)

• Call Symbol = STTCW
• Number of sold calls = 10
• Strike price = 17.5
• Strike date = 20090320
• Call premium = 7.4
• Total money received = 7400.0
• Max. days for which position may stay open = 47

Return on investment (If calls are exercised)

• Initial investment = 16110.0
• Absolute return = 1390.0
• Percentage return = 8.62%
• Annualized percentage return = 66.94%

Break even Information

• Break even price point = 16.11
• Break even buffer percentage = 31.47%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 23.51 * 1000 = 23510.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 7.4 = 7400.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 23510.0 - 7400.0 = 16110.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 10 * 100 * 17.5 = 17500.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 17500.0 - 16110.0 = 1390.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1390.0/16110.0) = 8.62%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 8.62 * 365/47 = 66.94%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 16110.0 / 1000 = 16.11
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (23.51 - 16.11) / 23.51 = 31.47%
This means that this position can weather a 31.47% 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 (BAC) March 2009 covered call position for BK OF AMERICA CP

A new covered calls position was established on February 2, 2009 with purchase of 4000 shares of "BK OF AMERICA CP" (BAC). Here are the details.

• Transaction Date = 20090202
• Ticker = (BAC)
• Company Name = BK OF AMERICA CP

Stock Leg (Buy)

• Number of shares purchased = 4000
• Price per share = 6.0
• Total money spent = 24000.0

Option Leg (Sell)

• Call Symbol = BYOCD
• Number of sold calls = 40
• Strike price = 4.0
• Strike date = 20090320
• Call premium = 2.51
• Total money received = 10040.0
• Max. days for which position may stay open = 47

Return on investment (If calls are exercised)

• Initial investment = 13960.0
• Absolute return = 2040.0
• Percentage return = 14.61%
• Annualized percentage return = 113.46%

Break even Information

• Break even price point = 3.49
• Break even buffer percentage = 41.83%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 6.0 * 4000 = 24000.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 40 * 100 * 2.51 = 10040.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 24000.0 - 10040.0 = 13960.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 40 * 100 * 4.0 = 16000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 16000.0 - 13960.0 = 2040.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2040.0/13960.0) = 14.61%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 14.61 * 365/47 = 113.46%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 13960.0 / 4000 = 3.49
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (6.0 - 3.49) / 6.0 = 41.83%
This means that this position can weather a 41.83% 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 (BAC) March 2009 covered call position for BK OF AMERICA CP

A new covered calls position was established on January 29, 2009 with purchase of 3000 shares of "BK OF AMERICA CP" (BAC). Here are the details.

• Transaction Date = 20090129
• Ticker = (BAC)
• Company Name = BK OF AMERICA CP

Stock Leg (Buy)

• Number of shares purchased = 3000
• Price per share = 6.78
• Total money spent = 20340.0

Option Leg (Sell)

• Call Symbol = BYOCE
• Number of sold calls = 30
• Strike price = 5.0
• Strike date = 20090320
• Call premium = 2.4
• Total money received = 7200.0005
• Max. days for which position may stay open = 51

Return on investment (If calls are exercised)

• Initial investment = 13140.0
• Absolute return = 1860.0
• Percentage return = 14.15%
• Annualized percentage return = 101.26%

Break even Information

• Break even price point = 4.38
• Break even buffer percentage = 35.39%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 6.78 * 3000 = 20340.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 30 * 100 * 2.4 = 7200.0005

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 20340.0 - 7200.0005 = 13140.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 30 * 100 * 5.0 = 15000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 15000.0 - 13140.0 = 1860.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1860.0/13140.0) = 14.15%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 14.15 * 365/51 = 101.26%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 13140.0 / 3000 = 4.38
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (6.78 - 4.38) / 6.78 = 35.39%
This means that this position can weather a 35.39% 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 (PRU) June 2009 covered call position for PRUDENTIAL FINCL

A new covered calls position was established on January 29, 2009 with purchase of 1500 shares of "PRUDENTIAL FINCL " (PRU). Here are the details.

• Transaction Date = 20090129
• Ticker = (PRU)
• Company Name = PRUDENTIAL FINCL

Stock Leg (Buy)

• Number of shares purchased = 1500
• Price per share = 28.62
• Total money spent = 42930.0

Option Leg (Sell)

• Call Symbol = PRUFX
• Number of sold calls = 15
• Strike price = 20.0
• Strike date = 20090619
• Call premium = 12.4
• Total money received = 18600.0
• Max. days for which position may stay open = 142

Return on investment (If calls are exercised)

• Initial investment = 24330.0
• Absolute return = 5670.0
• Percentage return = 23.3%
• Annualized percentage return = 59.89%

Break even Information

• Break even price point = 16.22
• Break even buffer percentage = 43.32%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 28.62 * 1500 = 42930.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 15 * 100 * 12.4 = 18600.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 42930.0 - 18600.0 = 24330.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 15 * 100 * 20.0 = 30000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 30000.0 - 24330.0 = 5670.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (5670.0/24330.0) = 23.3%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 23.3 * 365/142 = 59.89%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 24330.0 / 1500 = 16.22
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (28.62 - 16.22) / 28.62 = 43.32%
This means that this position can weather a 43.32% 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 (AFL) May 2009 covered call position for A F L A C INC

A new covered calls position was established on January 26, 2009 with purchase of 2000 shares of "A F L A C INC" (AFL). Here are the details.

• Transaction Date = 20090126
• Ticker = (AFL)
• Company Name = A F L A C INC

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 19.62
• Total money spent = 39240.0

Option Leg (Sell)

• Call Symbol = AFLEV
• Number of sold calls = 20
• Strike price = 12.5
• Strike date = 20090515
• Call premium = 8.8
• Total money received = 17600.0
• Max. days for which position may stay open = 110

Return on investment (If calls are exercised)

• Initial investment = 21640.0
• Absolute return = 3360.0
• Percentage return = 15.52%
• Annualized percentage return = 51.49%

Break even Information

• Break even price point = 10.82
• Break even buffer percentage = 44.85%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 19.62 * 2000 = 39240.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 8.8 = 17600.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 39240.0 - 17600.0 = 21640.0

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 - 21640.0 = 3360.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (3360.0/21640.0) = 15.52%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 15.52 * 365/110 = 51.49%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 21640.0 / 2000 = 10.82
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (19.62 - 10.82) / 19.62 = 44.85%
This means that this position can weather a 44.85% 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 (PRU) March 2009 covered call position for PRUDENTIAL FINCL

A new covered calls position was established on January 26, 2009 with purchase of 1500 shares of "PRUDENTIAL FINCL " (PRU). Here are the details.

• Transaction Date = 20090126
• Ticker = (PRU)
• Company Name = PRUDENTIAL FINCL

Stock Leg (Buy)

• Number of shares purchased = 1500
• Price per share = 25.02
• Total money spent = 37530.0

Option Leg (Sell)

• Call Symbol = PRUCW
• Number of sold calls = 15
• Strike price = 17.5
• Strike date = 20090320
• Call premium = 9.2
• Total money received = 13800.0
• Max. days for which position may stay open = 54

Return on investment (If calls are exercised)

• Initial investment = 23730.0
• Absolute return = 2520.0
• Percentage return = 10.61%
• Annualized percentage return = 71.71%

Break even Information

• Break even price point = 15.82
• Break even buffer percentage = 36.77%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 25.02 * 1500 = 37530.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 15 * 100 * 9.2 = 13800.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 37530.0 - 13800.0 = 23730.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 15 * 100 * 17.5 = 26250.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 26250.0 - 23730.0 = 2520.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2520.0/23730.0) = 10.61%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 10.61 * 365/54 = 71.71%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 23730.0 / 1500 = 15.82
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (25.02 - 15.82) / 25.02 = 36.77%
This means that this position can weather a 36.77% 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) April 2009 covered call position for ROHM HAAS CO

A new covered calls position was established on January 26, 2009 with purchase of 600 shares of "ROHM HAAS CO" (ROH). Here are the details.

• Transaction Date = 20090126
• Ticker = (ROH)
• Company Name = ROHM HAAS CO

Stock Leg (Buy)

• Number of shares purchased = 600
• Price per share = 57.1
• Total money spent = 34260.0

Option Leg (Sell)

• Call Symbol = ROHDI
• Number of sold calls = 6
• Strike price = 45.0
• Strike date = 20090417
• Call premium = 16.4
• Total money received = 9840.0
• Max. days for which position may stay open = 82

Return on investment (If calls are exercised)

• Initial investment = 24420.0
• Absolute return = 2580.0
• Percentage return = 10.56%
• Annualized percentage return = 47.0%

Break even Information

• Break even price point = 40.7
• Break even buffer percentage = 28.72%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 57.1 * 600 = 34260.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 6 * 100 * 16.4 = 9840.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 34260.0 - 9840.0 = 24420.0

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 - 24420.0 = 2580.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2580.0/24420.0) = 10.56%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 10.56 * 365/82 = 47.0%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 24420.0 / 600 = 40.7
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (57.1 - 40.7) / 57.1 = 28.72%
This means that this position can weather a 28.72% 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 (JPM) March 2009 covered call position for JP MORGAN CHASE C

A new covered calls position was established on January 20, 2009 with purchase of 2000 shares of "JP MORGAN CHASE C" (JPM). Here are the details.

• Transaction Date = 20090120
• Ticker = (JPM)
• Company Name = JP MORGAN CHASE C

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 18.09
• Total money spent = 36180.0

Option Leg (Sell)

• Call Symbol = JSACY
• Number of sold calls = 20
• Strike price = 12.5
• Strike date = 20090320
• Call premium = 7.0
• Total money received = 14000.0
• Max. days for which position may stay open = 60

Return on investment (If calls are exercised)

• Initial investment = 22180.0
• Absolute return = 2820.0
• Percentage return = 12.71%
• Annualized percentage return = 77.31%

Break even Information

• Break even price point = 11.09
• Break even buffer percentage = 38.69%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 18.09 * 2000 = 36180.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 7.0 = 14000.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 36180.0 - 14000.0 = 22180.0

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 - 22180.0 = 2820.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2820.0/22180.0) = 12.71%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 12.71 * 365/60 = 77.31%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 22180.0 / 2000 = 11.09
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (18.09 - 11.09) / 18.09 = 38.69%
This means that this position can weather a 38.69% 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 (USB) March 2009 covered call position for US BANCORP

A new covered calls position was established on January 20, 2009 with purchase of 2000 shares of "US BANCORP" (USB). Here are the details.

• Transaction Date = 20090120
• Ticker = (USB)
• Company Name = US BANCORP

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 15.34
• Total money spent = 30680.0

Option Leg (Sell)

• Call Symbol = USBCB
• Number of sold calls = 20
• Strike price = 10.0
• Strike date = 20090320
• Call premium = 6.3
• Total money received = 12600.0
• Max. days for which position may stay open = 60

Return on investment (If calls are exercised)

• Initial investment = 18080.0
• Absolute return = 1920.0
• Percentage return = 10.61%
• Annualized percentage return = 64.54%

Break even Information

• Break even price point = 9.04
• Break even buffer percentage = 41.06%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 15.34 * 2000 = 30680.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 6.3 = 12600.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 30680.0 - 12600.0 = 18080.0

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 - 18080.0 = 1920.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1920.0/18080.0) = 10.61%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 10.61 * 365/60 = 64.54%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 18080.0 / 2000 = 9.04
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (15.34 - 9.04) / 15.34 = 41.06%
This means that this position can weather a 41.06% 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 (PRU) March 2009 covered call position for PRUDENTIAL FINCL

A new covered calls position was established on January 20, 2009 with purchase of 2000 shares of "PRUDENTIAL FINCL " (PRU). Here are the details.

• Transaction Date = 20090120
• Ticker = (PRU)
• Company Name = PRUDENTIAL FINCL

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 21.92
• Total money spent = 43840.0

Option Leg (Sell)

• Call Symbol = PRUCV
• Number of sold calls = 20
• Strike price = 12.5
• Strike date = 20090320
• Call premium = 10.5
• Total money received = 21000.0
• Max. days for which position may stay open = 60

Return on investment (If calls are exercised)

• Initial investment = 22840.0
• Absolute return = 2160.0
• Percentage return = 9.45%
• Annualized percentage return = 57.48%

Break even Information

• Break even price point = 11.42
• Break even buffer percentage = 47.9%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 21.92 * 2000 = 43840.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 10.5 = 21000.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 43840.0 - 21000.0 = 22840.0

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 - 22840.0 = 2160.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2160.0/22840.0) = 9.45%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 9.45 * 365/60 = 57.48%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 22840.0 / 2000 = 11.42
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (21.92 - 11.42) / 21.92 = 47.9%
This means that this position can weather a 47.9% 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 (SWN) March 2009 covered call position for SOUTHWESTERN ENER

A new covered calls position was established on January 13, 2009 with purchase of 1000 shares of "SOUTHWESTERN ENER" (SWN). Here are the details.

• Transaction Date = 20090113
• Ticker = (SWN)
• Company Name = SOUTHWESTERN ENER

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 29.5
• Total money spent = 29500.0

Option Leg (Sell)

• Call Symbol = SWNCE
• Number of sold calls = 10
• Strike price = 25.0
• Strike date = 20090320
• Call premium = 6.8
• Total money received = 6800.0
• Max. days for which position may stay open = 67

Return on investment (If calls are exercised)

• Initial investment = 22700.0
• Absolute return = 2300.0
• Percentage return = 10.13%
• Annualized percentage return = 55.18%

Break even Information

• Break even price point = 22.7
• Break even buffer percentage = 23.05%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 29.5 * 1000 = 29500.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 6.8 = 6800.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 29500.0 - 6800.0 = 22700.0

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 - 22700.0 = 2300.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2300.0/22700.0) = 10.13%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 10.13 * 365/67 = 55.18%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 22700.0 / 1000 = 22.7
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (29.5 - 22.7) / 29.5 = 23.05%
This means that this position can weather a 23.05% 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 (BTU) March 2009 covered call position for PEABODY ENERGY CO

A new covered calls position was established on January 8, 2009 with purchase of 1000 shares of "PEABODY ENERGY CO" (BTU). Here are the details.

• Transaction Date = 20090108
• Ticker = (BTU)
• Company Name = PEABODY ENERGY CO

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 26.68
• Total money spent = 26680.0

Option Leg (Sell)

• Call Symbol = BTUCX
• Number of sold calls = 10
• Strike price = 22.5
• Strike date = 20090320
• Call premium = 6.5
• Total money received = 6500.0
• Max. days for which position may stay open = 72

Return on investment (If calls are exercised)

• Initial investment = 20180.0
• Absolute return = 2320.0
• Percentage return = 11.49%
• Annualized percentage return = 58.24%

Break even Information

• Break even price point = 20.18
• Break even buffer percentage = 24.36%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 26.68 * 1000 = 26680.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 6.5 = 6500.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 26680.0 - 6500.0 = 20180.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 10 * 100 * 22.5 = 22500.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 22500.0 - 20180.0 = 2320.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2320.0/20180.0) = 11.49%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 11.49 * 365/72 = 58.24%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 20180.0 / 1000 = 20.18
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (26.68 - 20.18) / 26.68 = 24.36%
This means that this position can weather a 24.36% 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 (JPM) March 2009 covered call position for JP MORGAN CHASE C

A new covered calls position was established on January 8, 2009 with purchase of 1000 shares of "JP MORGAN CHASE C" (JPM). Here are the details.

• Transaction Date = 20090108
• Ticker = (JPM)
• Company Name = JP MORGAN CHASE C

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 27.22
• Total money spent = 27220.0

Option Leg (Sell)

• Call Symbol = JSACS
• Number of sold calls = 10
• Strike price = 22.5
• Strike date = 20090320
• Call premium = 6.8
• Total money received = 6800.0
• Max. days for which position may stay open = 72

Return on investment (If calls are exercised)

• Initial investment = 20420.0
• Absolute return = 2080.0
• Percentage return = 10.18%
• Annualized percentage return = 51.6%

Break even Information

• Break even price point = 20.42
• Break even buffer percentage = 24.98%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 27.22 * 1000 = 27220.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 6.8 = 6800.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 27220.0 - 6800.0 = 20420.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 10 * 100 * 22.5 = 22500.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 22500.0 - 20420.0 = 2080.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2080.0/20420.0) = 10.18%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 10.18 * 365/72 = 51.6%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 20420.0 / 1000 = 20.42
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (27.22 - 20.42) / 27.22 = 24.98%
This means that this position can weather a 24.98% 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 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 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.