A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) with the purchase of j2 Global Communications Inc (JCOM) covered calls.
j2 Global Communications Inc (JCOM) is a small ($735M market cap), Los Angeles-based value-added and internet-based email, efax, and evoice services company. It provides global telephony/internet protocol network services to individuals and businesses spanning 3000 cities in 42 countries on 5 continents.
It is very unusual for a company to meet all nine of the key criteria on the Covered Calls Advior's 'Buy Alerts' worksheet, but JCOM does:
Fortunately, this position was established near the lowest trading price of the day. A summary of the transactions is as follows:
Established j2 Global Communications Inc Covered Calls for Feb09:
01/23/09 Bought 300 JCOM @ $16.76
01/23/09 Sold 3 JCOM Feb09 $17.50 Calls @ $1.00
Absolute Return if Unchanged: +6.0%
Annualized Return If Unchanged (ARIU): +74.9%
Absolute Return if Exercised: +8.0%
Annualized Return If Exercised (ARIE): +130.7%
Downside Breakeven Price Point: $15.76
Downside Breakeven Protection: 6.0%