I decided to re-enter a position in LPHI, as it will be paying a dividend during this expiration month. The stock continues to trade in a pretty tight range between $17 and $18.50. The stock also sports an above average dividend yield of 5%. LPHI is essentially a type of investment fund for wealthy individuals. They purchase life insurance policies in the secondary market for wealthy individuals who continue to pay the premiums and then collect the funds when the underwritten individual passes. This is a relatively morbid business, but it is also one which I believe will perform well in the economic climate. The company has no debt, and is growing rapidly, as such I believe it will continue to be a good holding in the CCIP. I sold a put instead of writing a CC due to the wash rule, as I had previously sold LPHI for a loss. The profit/loss info is below:
10/19/2009 -- Sold To Open 1 $17.50 LPHI November CSP @ $1.10
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: N/A
Potential Gain If Called At Expiration: 6.29%
PotentialAnnualized Gain If Called At Expiration: 69.52%
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