Initial Transaction - Total (TOT)

An initial position was established in Total, an integrated oil & gas major on April 21, 2009. This position was established due to the short term drop in oil prices, which led to a 15% drop in Total from $53 to $45. Additionally, Total pays its semi-annual dividend with an ex-div date previous to May expiration. As such, it provides quite an interesting play.

4/21/2009 -- Bought 100 TOT @ 45.295
4/21/2009 -- Sold To Open 1 TOT May $45 Call @ 1.95


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $4529.50

If stock is called before ex-div date:

Downside Coverage: 4.3%
Possible Max Upside: 3.5%

Annualized Max Upside: 54.9%

If stock is called at May expiration (Includes $1.55/share dividend):

Downside Coverage: 7.7%
Possible Max Upside: 7.3%

Annualized Max Upside: 102.2%