This position was another in my ex-dividend strategy, which involves creating an ITM covered call position in a company which has an ex-dividend date prior to the expiration date of the option. As planned, the position was called away the last trading day before its ex-dividend date. The final profit/loss info is below:
10/20/2009 -- Bought 100 MCHP @ 26.14
10/20/2009 -- Sold To Open 1 MCHP November $25 Call @ 1.54
11/13/2009 -- Sold 100 MCHP @ 24.9543
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 2460.00
Final Profit: 1.44%
Potential Annualized Gain If Called At Ex-Div Date: 21.90%
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