The Covered Calls Advisor Portfolio (CCAP) is initiated today with two new covered call positions:
9/7/07 Bought 500 MRK @ 49.97
9/7/07 Sold 5 MRK Oct07 50 Calls @ 1.85
Annualized Return If Unchanged: 31.4%
Annualized Return If Exercised: 31.9%
Downside Breakeven Protection: 3.7%
9/7/07 Bought 500 NKE @ 54.83
9/7/07 Sold 5 NKE Oct07 55 Calls @ 2.30
Annualized Return If Unchanged: 35.6%
Annualized Return If Exercised: 38.2%
Downside Breakeven Protection: 4.2%
It is expected that the CCAP will normally contain between 15-20 positions on an ongoing basis. Additional covered call positions will be established during the next two weeks and every transaction will be posted to this blog on the same day they are established.
