A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) as follows:
Established Chubb Corporation (CB) Covered Calls for Apr08
03/27/08 Bought 500 CB @ $49.87
03/27/08 Sold 5 CB Apr08 $50 Calls @ $1.55
Annualized Return If Stock Price Unchanged (ARIU): +49.3%
Annualized Return If Exercised (ARIE): +53.5%
Downside Breakeven Protection: 3.1%
Chubb was selected since it was rated as a 'Buy' by both stock selection advisory services (Schwab Equity Ratings and MarketGrader.com) used by the Covered Calls Advisor. In addition, it is both a Mergent's Dividend Achiever and a Buyback Achiever. Most importantly, it received the highest overall points rating of any financial sector company in this advisor's Analysis Sheet methodology.