Friday, April 25, 2008

Bought McDermott International, Cooper Tire, and EEM Emerging Markets ETF Covered Calls

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

1. Established McDermott International Inc (MDR) Covered Calls for May08:

04/28/08 Bought 300 MDR @ $59.16
04/28/08 Sold 3 MDR May08 $60 Calls @ $2.30

Annualized Return If Stock Price Unchanged (ARIU): +64.5%
Annualized Return If Exercised (ARIE): +88.1%
Downside Breakeven Protection: 3.9%


2. Established Cooper Tire (CTB) Covered Calls for May08:

04/28/08 Bought 1000 CTB @ $14.71
04/28/08 Sold 10 CTB May08 $15 Calls @ $.70

Annualized Return If Stock Price Unchanged (ARIU): +78.8%
Annualized Return If Exercised (ARIE): +111.7%
Downside Breakeven Protection: 4.8%

Note: Shortly after establishing this position, Cooper issued news that they will have a miss from their prior quarterly earnings guidance and the stock has declined substantially.
Sometimes our timing is just plain lousy!


3. Established iShares MSCI Emerging Markets ETF (EEM) Covered Calls for May08:

04/28/08 Bought 100 EEM @ $145.30
04/28/08 Sold 1 EEM May08 $140 Call @ $7.90

Annualized Return If Stock Price Unchanged (ARIU): +29.7%
Annualized Return If Exercised (ARIE): +29.7%
Downside Breakeven Protection: 5.4%

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