Wednesday, July 23, 2008

Dover Corporation -- Closed

The position in Dover Corporation(DOV)was closed today by selling the 500 shares owned.

The Transactions History to date was as follows:
05/23/08 Initial Stock Purchase Transaction -- Bought 500 DOV @ $52.13
05/23/08 Initial Calls Sold Transaction -- Sold 5 DOV Jul08 $55 Calls @ $1.00
06/21/08 Jun08 Options Expired -- Note: DOV closing price was $51.06
06/23/08 Covered Calls Continuation Transaction -- Sold 5 Jul08 $50 Calls @ $1.85
07/19/08 Jul08 Options Expired -- Note: DOV closing price was $49.05
07/23/08 Sold 500 DOV at $50.56

The overall performance results(including commissions)for the DOV transactions were as follows:
Stock Purchase Cost: $26,073.95
($52.13*500+$8.95 commission)

Net Profit:
(a) Options Income: +$1,450.40 (500*$1.00 + 500*$1.85 - 2*$12.70 commissions)
(b) Dividend Income: $0
(c) Capital Appreciation: -$802.90
= ($50.56-$52.13)*500 - 2*$8.95 commissions

Total Net Profit: +$647.50
= (+$1,450.40 + $0 - $802.90)

Annualized Return: +14.9%
(+$647.50/$26,073.95)*(365/61 days)

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