This position is in Regency Centers Corporation which is a REIT (Real Estate Investment Trust). It is my intention that this will replace part of the CLI position which will hopefully be called away at expiration (at least partially). I would like to have a couple REIT's in my portfolio as they pay very good dividends (though the dividends are taxed as ordinary income, this is a key point), and they have also been battered mercilessly. REG in particular is an interesting REIT because it owns shopping centers which are anchored by grocery stores, and mostly in affluent areas. They have a very good cash position, and pay about a 5% dividend. They also recently did a share offering at $32.50 and have basically stayed above that price since the share offering which shows underlying strength in the stock. The profit/loss info is below:
6/22/2009 -- Bought 100 Shares of REG @ 34.025
6/22/2009 -- Sold To Open 1 July $35.00 Call @ 1.41
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3261.50
Downside Coverage: 4.1%
Possible Max Upside: 7.16%
Annualized Max Upside: 100.51%
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