I decided to open another position in Intel after a drop in the price back near $19. It was another position intended to yield between a 10 and 20% annualized return. Intel was going to be releasing earnings in the following few weeks, and I would be glad to own it at the $17.50 cost averaged price. This was also an additional position utilizing the ex-dividend strategy I have described in previous posts. The profit/loss info is below:
10/1/2009 -- Bought 100 INTC @ 19.11
10/1/2009 -- Sold To Open 1 INTC November $18 Call @ 1.56
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: $1755.00
Potential Annualized Gain If Called At Ex-Div. Date (11/5/2009): 23.77%
Potential Annualized Gain If Called At Expiration (11/21/2009): 16.31%
Downside Protection: 8.2%
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