Friday, September 18, 2009

Update Transaction - McGraw-Hill (MHP)

McGraw-Hill was another position which was rolled out to another month's expiration. The stock has been on quite a rollercoaster ride since I purchased it. It rose as high as $33, and was promptly demolished after a pending court case was not dismissed regarding its ratings business. As the stock had made a brief rebound, I decided to roll-out the call until November. The new profit/loss info is below:

8/21/2009 -- Bought 100 MHP @ 29.66
8/21/2009 -- Sold To Open 1 MHP September $30 Call @ 0.86
8/24/2009 -- Dividend @ 0.23
9/3/2009 -- Bought To Open 1 MHP September $25 Put @ 0.20
9/18/2009 - Bought To Close 1 MHP September $30 Call @ 0.08
9/18/2009 -- Sold To Open 1 MHP November $30 Call @ 1.12

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 2890.00

Potential Gain If Called At Expiration: 7.51%
PotentialAnnualized Gain If Called At Expiration: 29.79%

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