Wednesday, December 26, 2007

Buy AT&T, Herbalife, and Seagate Technology

Three new covered call positions were established today in the Covered Calls Advisor Portfolio(CCAP) as follows:

1. AT&T Covered Calls Established for Jan08

12/26/07 Bought 300 T @ 41.49
12/26/07 Sold 3 T Jan08 42.5 Calls @ $.65

Annualized Return If Unchanged: 38.5%
Annualized Return If Exercised: 75.5%
Downside Breakeven Protection: 2.5%

The annualized returns above also include the $.40 quarterly dividend which will go ex-div on 1/8/08.


2. Herbalife Covered Calls Established for Jan08

12/26/07 Bought 500 HLF @ 39.32
12/26/07 Sold 5 HLF Jan08 40 Calls @ $1.40

Annualized Return If Unchanged: 54.1%
Annualized Return If Exercised: 80.5%
Downside Breakeven Protection: 3.6%


3. Seagate Technology Covered Calls Established for Jan08

12/26/07 Bought 800 STX @ 25.84
12/26/07 Sold 8 STX Jan08 27.5 Calls @ $.55

Annualized Return If Unchanged: 32.3%
Annualized Return If Exercised: 130.1%
Downside Breakeven Protection: 2.1%

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