A position in Aflac was established on March 3, 2009. This covered call purchase was more of a speculative play than a neutral-bullish stance on the stock. Aflac has had increased volatility as a result of the general market mood regarding the financial industry, including insurers. This position was established due to the large downside coverage with a relatively modest upside.
3/3/2009 -- Bought 100 AFL @ 15.7359
3/3/2009 -- Sold To Open 1 AFL March $12.5 Call @ 3.99
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1573.59
Downside Coverage: 25.37%
Possible Max Upside: 4.17%
Annualized Max Upside: 50.18%
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