After a recent run-up in the price of BMY, I decided to roll my August call down to a lower strike in order to exit the position. Although BMY has provided consistent movement between $19 and $21, it simply does not provide the type of returns I am looking for at this moment. If it is called away at August expiration, I would consider selling a $20 or $21 cash-secured put on it to get back in at a later time as it does provide a very nice dividend yield. The new profit/loss info is below:
4/6/2009 -- Bought 100 BMY @ 20.48
4/6/2009 -- Sold To Open 1 BMY April $21 Call @ 0.34
4/17/2009 -- Covered Call Expired
4/20/2009 -- Sold To Open 1 BMY May $21 Call @ 0.65
4/29/2009 -- Bought To Close 1 BMY May $21 Call @ 0.11
5/12/2009 -- Sold To Open 1 BMY June $21 Call @ 0.55
5/27/2009 -- Bought To Close 1 BMY June $21 Call @ 0.18
6/25/2009 -- Sold To Open 1 BMY August $22 Call @ 0.35
7/1/2009 -- Dividend @ 0.31
7/23/2009 -- Bought To Close 1 BMY August $22 Call @ 0.17
7/23/2009 -- Sold To Open 1 BMY August $21 Call @ 0.32
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2048.00
Downside Coverage (from current price of $20.86): 11.7%
Possible Max Upside: 12.81%
Annualized Max Upside: 33.88%
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