The Covered Calls Advisor Portfolio (CCAP) established the following new covered call position:
10/22/07 Bought 500 MCD @ 55.94
10/22/07 Sold 5 MCD Nov07 57.5 Calls @ $.70
Annualized Return If Unchanged: 55.94%
Annualized Return If Exercised: 94.4%
Downside Breakeven Protection: 1.3%
As you may recall, MCD goes ex-dividend on 11/13/07 with an annual dividend of $1.50 per share. Reference Link to McDonald's post. For clarification, this dividend is included in the annualized return %s above, but is excluded from the downside breakeven protection calculation.