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Monday, March 23, 2009

Establish ENSCO International Inc Covered Calls


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

A summary of the transactions is as follows:
Established ENSCO International Inc Covered Calls for Apr09:
03/23/09 Bought 400 ESV @ $29.36
03/23/09 Sold 4 ESV Apr09 $30.00 Calls @ $1.80

Absolute Return if Stock Price Unchanged at $48.95: +6.1%
= $1.80/$29.36
Annualized Return if Unchanged at $29.36 (ARIU): +86.0%
Absolute Return if Exercised at $30.00: +8.3%
= [($1.80+($30.00-$29.36)]/$29.36
Annualized Return if Exercised(ARIE): +116.7%
Downside Breakeven Price Point: $27.56
Downside Breakeven Protection: 6.1%

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