The Covered Calls Advisor Portfolio(CCAP) Aug08 position in Hewlett-Packard (HPQ) was in-the-money on expiration Friday and the stock was therefore called away. It was decided to re-buy HPQ to re-establish a new covered calls position in HPQ for Sep08 as follows:
Established Hewlett-Packard(HPQ) Covered Calls for Sep08.
08/18/08 Bought 200 HPQ @ $44.34
08/08/08 Sold 2 HPQ Sep08 $45.00 Calls @ $1.55
Annualized Return If Stock Price Unchanged (ARIU): +37.2%
Annualized Return If Exercised (ARIE): +52.4%
Downside Breakeven Protection: 3.7%