To continue my recent ex-dividend date CC strategy, I opened a position in Lockheed-Martin (LMT) an aerospace defense contractor. Lockheed took quite a hit in July after releasing disappointing earnings, and has been stuck around $75 since then. The stock sports a nice 3% dividend and is not generally considered very volatile. The ex-dividend date is a few days after the purchase date, and could present a nice return if called. The new profit/loss info is below:
8/25/2009 -- Bought 100 LMT @ 74.30
8/25/2009 -- Sold To Open 1 LMT September $75 Call @ 1.30
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 7300.00
Potential Gain If Called At Ex-Div Date: 2.62%
Potential Annualized Gain If Called At Ex-Div Date: 319.31%
Potential Gain If Called At Expiration: 3.52%
PotentialAnnualized Gain If Called At Expiration: 51.40%
No comments:
Post a Comment