The following transaction was made today to establish a covered calls position against the 500 shares owned in Altria Group Inc(MO):
01/20/09 Covered Calls Continuation Transaction -- STO 5 Feb09 $18.00 Calls @ $.40
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
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: +$1,403.80 (500*($.51+$.43+$.67+$.63+$.32+$.40) - 6*$12.70 commissions)
(b) Dividend Income: +$305.00 ($145.00+$160.00)
(c) Capital Appreciation (If exercised): -$1,463.95
= ($18.00-$20.91)*500 - $8.95 commissions
Total Net Profit(If stock price exercised at $18.00): +$244.85
= (+$1,403.80 +$305.00 -$1,463.95)
Annualized Return If Exercised (ARIE) +4.6%
(+$244.85/$10,463.95)*(365/186 days)
