This position is in ConocoPhillips, a diversified oil & gas company. I have been eyeing this stock for quite a while, but was hesitant to pull the trigger due to the run-up in oil prices driving the price up to about $48 in the beginning of June. The market pullback on monday and tuesday provided a great entry point, allowing me to get into the stock at about $40, a price not seen since the end of April. Conoco is one of the better regarded integrated oil companies, and pays a very nice 4.5% dividend. The profit/loss info is below:
6/22/2009 -- Bought 100 Shares of COP @ 40.56
6/22/2009 -- Sold To Open 1 July $42.00 Call @ 0.96
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3960.00
Downside Coverage: 2.37%
Possible Max Upside: 5.93%
Annualized Max Upside: 83.31%
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