The following transaction was made today to continue the covered calls written against the 500 shares on HON:
10/22/07 Covered Calls Continuation Transaction -- STO 5 Nov07 57.5 Calls @ $2.25
The Transactions History to date is as follows:
9/10/07 Initial Stock Position -- BTO 500 HON @ 54.23
9/10/07 Initial Call Option -- STO 5 HON Oct07 55 Calls @ 1.80
9/26/07 Roll Up Transaction -- BTC 5 HON Oct 55s @ $4.70
9/26/07 Roll Up Transaction -- STO 5 HON Oct 60s @ $1.10
10/20/07 Oct’07 Option Expiration Date – HON closed below the strike price at $58.32
10/22/07 Covered Calls Continuation Transaction -- STO 5 Nov07 57.5 Calls @ $2.25
The Performance Results potential (including commissions) if the current position is called is as follows:
Stock Purchase Cost: $27,124.95 ($54.23*500+$9.95 commissions)
Option Income: +$181.45 ($180*5-$470*5+$110*5+225*5-$43.55 commissions)
Capital Appreciation: $1,615.10 ($57.50*500-$9.95 -$27,124.95)
Net Profit: $1,796.55 ($181.45 + $1,615.10)
ANNUALIZED RETURN ON INVESTMENT IF CALLED:
(1,796.55/27,124.95)*(365/61 days) = 39.6%
