Monday, March 23, 2009

Establish Gymboree Corp Covered Calls


A new covered call position was established today in the Covered Calls Advisor Portfolio(CCAP) with the purchase of Gymboree Corp (GYMB) covered calls.

A summary of the transactions is as follows:
Established Gymboree Corp Covered Calls for Apr09:
03/23/09 Bought 300 GYMB @ $18.07
03/23/09 Sold 3 GYMB Apr09 $20.00 Calls @ $.50

Absolute Return if Stock Price Unchanged at $18.07: +2.8%
= $.50/$18.07
Annualized Return if Unchanged(ARIU): +38.8%
Absolute Return if Exercised at $20.00: +13.4%
= [($.50+($20.00-$18.07)]/$48.95
Annualized Return if Exercised: +188.8%
Downside Breakeven Price Point: $17.57
Downside Breakeven Protection: 2.8%

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