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Wednesday, February 20, 2008

Buy Boeing, Disney, Frontier Oil, Humana, Microsoft, Mylan, SPDR S&P 500 Index Trust, and Verizon

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

1. Boeing Covered Calls Established for Mar08

02/20/08 Bought 200 BA @ $84.35
02/20/08 Sold 2 BA Mar08 85 Calls @ $2.40

Annualized Return If Unchanged: +33.5%
Annualized Return If Exercised: +42.6%
Downside Breakeven Protection: 2.8%


2. Disney Covered Calls Established for Mar08

02/20/08 Bought 600 DIS @ $32.09
02/20/08 Sold 6 DIS Mar08 32.5 Calls @ $.80

Annualized Return If Unchanged: +29.3%
Annualized Return If Exercised: +44.4%
Downside Breakeven Protection: 2.5%


3. Frontier Oil Covered Calls Established for Mar08

02/20/08 Bought 500 FTO @ $37.60
02/20/08 Sold 5 FTO Mar08 40 Calls @ $1.35

Annualized Return If Unchanged: +42.2%
Annualized Return If Exercised: +117.4%
Downside Breakeven Protection: 3.6%


4. Humana Covered Calls Established for Mar08

02/20/08 Bought 200 HUM @ $68.65
02/20/08 Sold 2 HUM Mar08 70 Calls @ $2.20

Annualized Return If Unchanged: +37.7%
Annualized Return If Exercised: +60.9%
Downside Breakeven Protection: 3.2%


5. Microsoft Covered Calls Established for Mar08

02/20/08 Bought 800 MSFT @ $28.15
02/20/08 Sold 8 MSFT Mar08 29 Calls @ $.67

Annualized Return If Unchanged: +17.4%
Annualized Return If Exercised: +39.4%
Downside Breakeven Protection: 2.4%


6. Mylan Covered Calls Established for Mar08

02/20/08 Bought 800 MYL @ $12.85
02/20/08 Sold 8 MYL Mar08 12.5 Calls @ $.75

Annualized Return If Unchanged: +36.6%
Annualized Return If Exercised: +36.6%
Downside Breakeven Protection: 5.8%


7. SPDR S&P500 Index Trust Covered Calls Established for Mar08

02/20/08 Bought 200 SPY @ $133.89
02/20/08 Sold 2 SPY Mar08 135 Calls @ $3.55

Annualized Return If Unchanged: +36.1%
Annualized Return If Exercised: +45.8%
Downside Breakeven Protection: 2.7%

Although the first quarter dividend has yet to be declared, the annualized returns for SPY above includes an estimated quarterly dividend of $.551 to go ex-div in mid March.

8. Verizon Covered Calls Established for Apr08

02/20/08 Bought 300 VZ @ $33.94
02/20/08 Sold 3 VZ Apr08 35 Calls @ $1.30

Annualized Return If Unchanged: +31.5%
Annualized Return If Exercised: +50.9%
Downside Breakeven Protection: 3.8%

The annualized returns for VZ above includes the $.43 quarterly dividend which will go ex-div in early April.

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