Monday, March 23, 2009

Establish Amgen Inc Covered Calls


A new covered call position was established today in the Covered Calls Advisor Portfolio(CCAP) with the purchase of Amgen Inc (AMGN) covered calls.

A summary of the transactions is as follows:
Established Amgen Inc Covered Calls for Apr09:
03/23/09 Bought 300 AMGN @ $48.95
03/23/09 Sold 3 AMGN Apr09 $50.00 Calls @ $1.70

Absolute Return if Stock Price Unchanged at $48.95: +3.5%
= $1.70/$48.95
Annualized Return if Unchanged(ARIU): +48.7%
Absolute Return if Exercised at $50.00: +5.6%
= [($1.70+($50.00-$48.95)]/$48.95
Annualized Return if Exercised: +78.9%
Downside Breakeven Price Point: $47.25
Downside Breakeven Protection: 3.5%

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