Thursday, March 5, 2009

Altria Group Inc -- Continuation Transaction

The following transaction was made today to establish a covered calls position against the 500 shares owned in Altria Group Inc(MO):
03/05/09 Covered Calls Continuation Transaction -- STO 5 Mar09 $16.00 Calls @ $.21

The Transactions History to date is as follows:
08/19/08 Initial Stock Purchase Transaction -- Bought 500 MO @ $20.91
08/19/08 Initial Calls Sold Transaction -- Sold 5 MO Sep08 $21.00 Calls @ $.51
09/11/08 Ex-Dividend of $145.00 ($.29 * 500 shares)
09/20/08 Sep08 Options Expired
09/25/08 Covered Calls Continuation Transaction -- STO 5 Oct08 $21.00 Calls @ $.43
10/18/08 Oct08 Options Expired
10/20/08 Covered Calls Continuation Transaction -- STO 5 Nov08 $21.00 Calls @ $.67
11/22/08 Nov08 Options Expired
11/24/08 Covered Calls Continuation Transaction -- Sold 3 MO Dec08 $16 Calls at $.63
12/19/08 Dec08 Options Expired
12/22/08 Ex-Dividend of $160.00 ($.32 * 500 shares)
12/22/08 Covered Calls Continuation Transaction -- Sold 3 MO Jan09 $17 Calls at $.32
01/17/09 Jan09 Options Expired
01/20/09 Covered Calls Continuation Transaction -- Sold 3 MO Feb09 $18 Calls at $.40
02/21/09 Feb09 Options Expired
03/05/09 03/05/09 Covered Calls Continuation Transaction -- STO 5 Mar09 $16.00 Calls @ $.21
03/12/09 Ex-Dividend of $160.00 ($.32 * 500 shares)

The overall performance results(including commissions) for the MO transactions are as follows:
Stock Purchase Cost: $10,463.95
($20.91*500+$8.95 commission)

Net Profit:
(a) Options Income: +$1,496.10 (500*($.51+$.43+$.67+$.63+$.32+$.40+$.21) - 7*$12.70 commissions)
(b) Dividend Income: +$465.00 ($145.00+$160.00+$160.00)
(c) Capital Appreciation (If exercised): -$2,463.95
= ($16.00-$20.91)*500 - $8.95 commissions

Total Net Profit(If stock price exercised at $16.00): -$502.85
= (+$1,496.10 +$465.00 -$2,463.95)

Annualized Return If Exercised (ARIE) -8.2%
(-$502.85/$10,463.95)*(365/214 days)

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