MEMC Electronic Materials (WFR)

This position is in MEMC Electronics Materials which is a manufacturer of silicon products for use in the solar power market as well as consumer electronics. The position was originally opened in the beginning of this year, and the stock itself has underperformed thus far. However, as a result of selling calls against the position, the cost basis has been reduced to a point where any upward movement in the stock would be profitable from this point. The transaction info, and potential return are below:

Based on the current cost basis, the potential annualized return for this position if called at expiration in January would be 1.1%.

Current Positions

Posts will resume with current status of each position in the portfolio.

Back up and running....

After a long hiatus, I will be restarting posts in 2011. First step updating everyone on current holdings and the streamlined investing plan.

Blog posts moving to twitter - follow @cranjangles

Update Transaction - Multi-Fine Electronix (MFLX)

This position was rolled forward to August expiration. The new profit/loss info is below:


1/15/2010 -- Sold to Open 1 MFLX February $25 Put @ 1.2324
2/5/2010 -- Bought to Open 1 MFLX February $20 Put @ 0.4101
2/19/2010 -- Stock Bought Due To Option ITM @ $25.10
2/22/2010 -- Sold to Open 1 MFLX April $25 Call @ .2824
4/9/2010 -- Bought to Close 1 MFLX April $25 Call @ .2975
4/9/2010 -- Sold 100 MFLX @ 24.8295
4/9/2010 -- Sold to Open 1 MFLX May $25 Put @ 1.4399
5/7/2010 -- Bought to Close 1 MFLX May $25 Put @ 0.89
5/7/2010 -- Sold to Open 1 MFLX June $25 Put @ 1.37
5/25/2010 -- Bought to Close 1 MFLX June $25 Put @ 2.02
5/25/2010 -- Sold to Open 1 MFLX July $25 Put @ 2.55
6/24/2010 -- Bought to Close 1 MFLX July $25 Put @ 0.72
6/24/2010 -- Sold to Open 1 MFLX August $25 Put @ 1.60


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $23.77
Current Cost Average: $21.13
Commissions (Included In Cost): $39

Potential Annualized Gain If Called At Expiration (8/20/2010): 27.36%

Current Holdings

The current holdings of the CCIP as of June 23, 2010 are:

MEMC Electronic Materials - 100 Shares ($12 July CC)

Verizon - 100 Shares & 1 CSP ($32 July CSP, 100 Shares Uncovered)

Marathon Oil (MRO) - 1 $32 August CSP

Discover Financial (DFS) - 100 Shares ($15 July CC)

Multi-Fineline Electronics (MFLX) - 1 $25 July CSP

Sociedad Quimica y Minera (SQM) - 1 $35 August CSP

Linear Technology (LLTC) - 100 Shares ($27 July CC)

Neutral Tandem (TNDM) - 100 Shares ($15 Aug CC)

Abbott Labs (ABT) - 1 $52.50 August CSP

Texas Instruments (TXN) - 1 $23 July CSP

Life Partners Holdings (LPHI) - 1 $17.50 Aug CSP

JC Penneys (JCP) - 1 $23 July CSP

Nucor (NUE) - 100 Shares ($40 July CC)

McGraw-Hill (MHP) - 1 $27.50 Aug CSP

Suncor (SU) - 1 $28 July CSP

A123 Systems (AONE) - 100 Shares ($9 July CC)

Posting To Resume

After an extended hiatus, posts will resume in the month of July. I will begin with a recap of how the portfolio has fared over the last few months.

Update Transaction - J.C. Penney (JCP)

Position rolled forward to March. The new profit/loss info is below:

1/20/2010 -- Bought 100 JCP @ 25.86
1/20/2010 -- Sold To Open 1 JCP February $26 Call @ 1.04
2/10/2010 -- Bought To Close 1 JCP February $26 Call @ 0.2101
2/10/2010 -- Sold To Open 1 JCP March $26 Call @ 0.6399


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2482.00
Current Cost Average: $24.3902
Commissions (Included In Cost): $4

Potential Annualized Gain If Called At Expiration (3/20/2010): 39.88%

Update Transaction - Texas Instruments (TXN)

The position in TXN was rolled forward to next month (March). The new profit/loss info is below:

1/20/2010 -- Bought 100 TXN @ 24.36
1/20/2010 -- Sold To Open 1 TXN February $24 Call @ 1.03
1/28/2010 -- Dividend @ 0.12
2/10/2010 -- Bought To Close 1 TXN February $24 Call @ 0.1701
2/10/2010 -- Sold To Open 1 TXN March $24 Call @ 0.5599


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2333.00
Current Cost Average: $22.8202
Commissions (Included In Cost): $4

Potential Annualized Gain If Called At Expiration (3/20/2010): 31.02%

Dividend Payment - Linear Technology Corp. (LLTC)

This is a dividend update to the position in Linear Technology Corp. Yet again, the stock was not called away previous to the ex-dividend date. The new profit/loss info is below:

2/1/2010 -- Bought 100 LLTC @ 26.88
2/1/2010 -- Sold To Open 1 LLTC February $27 Call @ 0.51
2/10/2010 -- Dividend @ 0.23


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2637.00
Current Cost Average: $26.14
Commissions (Included In Cost): $2

Potential Annualized Gain If Called At Expiration (2/20/2010): 61.92%

Update Transaction - MEMC Electronic Materials (WFR)

In my continuing effort to slowly move all of my positions to IB, I have performed another complicated switching from a covered call position to a cash-secured put position. I also shifted the expiration forward to March. The new profit/loss info is below:

10/21/2009 -- Bought 100 WFR @ 15.76
10/21/2009 -- Sold To Open 1 WFR November $16 Call @ 0.81
10/23/2009 -- Bought To Close 1 WFR November $16 Call @ 0.25
10/23/2009 -- Sold To Open 1 WFR November $15 Call @ 0.40
10/27/2009 -- Bought To Close 1 WFR November $15 Call @ 0.20
12/2/2009 -- Sold To Open 1 WFR April $16 Call @ 0.55
2/10/2010 -- Bought To Close 1 WFR April $16 Call @ 0.18
2/10/2010 -- Sold 100 WFR @ 11.96
2/10/2010 -- Sold To Open 1 WFR March $15 Put @ 3.0524


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):


Potential Gain If Not Called At Expiration: 2.56%

Potential Annualized Gain If Not Called At Expiration: 6.22%

Update Transaction - Multi-Fine Electronix (MFLX)

After a lackluster earnings report (which was pre-announced) MFLX took a hit, as a result I decided to buy a protective put after a similar situation occurred on my ABFS position. The profit/loss info is below:

1/15/2010 -- Sold To Open 1 MFLX February $25.00 Put @ 1.2324
2/5/2010 -- Bought To Open 1 MFLX February $20 Put @ 0.4101

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: N/A

Potential Gain If Not Assigned At Expiration: 3.46%

Potential Annualized Gain If Not Assigned At Expiration: 35.08%

Dividend Payment - Intel (INTC)

It would seem the Short-Term Ex-Dividend Strategy (STEX) is not working quite as it is supposed to the last few times. I have no problem holding onto Intel however. This is an update after the passing of the ex-dividend date. The new profit/loss info is below:

1/29/2010 -- Bought 100 INTC @ 19.527
1/29/2010 -- Sold To Open 1 INTC February $19 Call @ 0.73
2/3/2010 -- Dividend @ 0.1575


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1879.70
Current Cost Basis: $1863.95
Commissions (Included In Cost): $2

Potential Annualized Gain If Called At Expiration (2/20/2010): 21.95%

Update Transaction - Verizon (VZ)

This is a bit of a convoluted transaction, but I am basically transitioning this position to my IB account, while also shifting up the expiration date, changing to a CSP and keeping the same annualized return. I know its a bit complicated but its the only way to avoid a wash sale. The new profit/loss info is below:

11/16/2009 -- Bought 100 VZ @ 30.37
11/16/2009 -- Sold To Open 1 VZ April $31 Call @ 1.08
1/6/2009 -- Dividend @ 0.475
2/3/2010 -- Bought To Close 1 VZ April $31 Call @0.37
2/3/2010 -- Sold 100 VZ @ 29.1423
2/3/2010 -- Sold To Open 1 VZ March $31 Put @ 1.999

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2930.00
Current Cost Average (IF ASSIGNED): $29.0428
Commissions (Included In Cost): $11

Potential Annualized Gain If Expires OTM(3/20/2010): 19.67%

Initial Transaction - Linear Technology Corporation (LLTC)

This is a new position in Linear Technology Corporation. It is part of my Short-Term Ex-Dividend Strategy (STEX). The stock pays a dividend in February, with an ex-dividend date of February 10, 2010. The new profit/loss info is below:

2/1/2010 -- Bought 100 LLTC @ 26.88
2/1/2010 -- Sold To Open 1 LLTC February $27 Call @ 0.51


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2637.00
Commissions (Included In Cost): $2


Downside Coverage (from current price of $26.88): 1.90%

Potential Annualized Gain If Called At Ex-Dividend Date (2/10/2010): 116.78%

Potential Annualized Gain If Called At Expiration (2/20/2010): 71.68%

Initial Transaction - Coinstar (CSTR)

Today I decided to open a cash-secured put position in Coinstar (CSTR). The profit/loss info is below:

2/1/2010 -- Sold To Open 1 CSTR February $25.00 Put @ 0.9899

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: N/A

Potential Gain If Not Assigned At Expiration: 3.96%

Potential Annualized Gain If Not Assigned At Expiration: 30.75%

Closing Transaction - Arkansas Best Corporation (ABFS)

After what can only be described as a horrible earnings report, I have closed my position in ABFS. Although I believe the dividend cut was a good and necessary measure it was one of the main reasons for choosing this transport stock over others. Additionally, the information from UPS regarding the slow recovery in larger freight means ABFS will continue to face pressures. This is the largest loss in the history of CCIP to date. The final profit/loss info is below:

1/11/2010 -- Sold To Open 1 ABFS February $27.50 Put @ 1.6824
2/1/2010 -- Bought To Close 1 ABFS February $27.50 Put @ 5.9675

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: N/A

Final Loss:-16.6%

Final Annualized Loss: -288.48%

Monthly Returns - January 2010

January 2010 Returns

The month of January was the first real negative month for the market in quite a while. It was also a negative month for the CCIP. The stock market has been pulled down due to uncertainty in foreign markets such as Greece and China, as well as new anti-business rhetoric coming out of Washington. Even a much better than expected GDP number for the 4th quarter could not pull the market out of its current mood. Even with these difficult markets, as well as a number of positions which have been hammered recently, the CCIP was able to outperform the market by 1.44% a similar out performance to December when the CCIP outperformed by 1.67%. Although I cannot be sure, I believe that the asset allocation model I have shifted to in the last few months has helped the portfolio outperform. This has resulted in the CCIP pulling back ahead in comparison to the SPY ETF since inception.

The portfolio continues to beat the market since its inception (by about 5.65%). The chart below presents the monthly performance of the CCIP for January, the green rows designate the months the CCIP outperformed the market. The table also shows the performance of the portfolio since inception.

Portfolio Results

The 2009 Since Inception results are as follows:

1. Since Inception Results

CCIP Absolute Return (March 7 through February 2, 2009) = 63.52%

Benchmark S&P 500 (SPY) Absolute Return (March 7 through February 2, 2009) = 57.87%

The CCIP has outperformed the S&P 500 benchmark by a total of 5.65%

February 2010 Next Steps

The market is getting more and more dicey when it comes to which stocks perform and which do not. The days are over of mindless buying that consistently sends the market higher and higher regardless of the news.

As such, the selection of positions in the CCIP is becoming more difficult, and also more risky in the sense that a bad earnings report, or a loss of a key contract can send a stock down 10-20%. Unfortunately, selling a call on such positions cannot hedge against that type of fall.

I am going to continue to use my asset allocation strategy which I have been utilizing for the past few months, as I have seen a sharp decrease in the volatility of the CCIP vs. SPY, to the tune of about half as much volatility with the same or better returns.

As always, please post any thoughts or questions you have regarding the CCIP and the posts on the blog.

Initial Transaction - Intel (INTC)

This is a new position in Intel. It is part of my Short-Term Ex-Dividend Strategy (STEX). The stock pays a dividend in February, with an ex-dividend date of February 3, 2010. The new profit/loss info is below:

1/29/2010 -- Bought 100 INTC @ 19.527
1/29/2010 -- Sold To Open 1 INTC February $19 Call @ 0.73


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1879.70
Commissions (Included In Cost): $2


Downside Coverage (from current price of $19.527): 3.74%

Potential Annualized Gain If Called At Ex-Dividend Date (2/3/2010): 26.48%

Potential Annualized Gain If Called At Expiration (2/20/2010): 21.72%

Dividend Payment - Texas Instruments (TXN)

This is a new position in Texas Instruments. The company recently pre-announced earnings above expectations, in addition to having an ex-dividend date over the next month. Thus I consider there to be a low level of risk from the earnings announcement in the next few weeks. This is also my first position using Interactive Brokers, which I am slowly moving all my positions to. Thanks to "the options guru" (http://theoptionguru.com/blog/) who has videos on his blog with instructions on how to use IB (as it is a bit less user-friendly as other brokers). The nice thing is that trades only cost $1. Which means I save 80% of my commissions on every trade vs. what I have been paying. Based on the number of trades I placed in 2009, just by switching commissions I can increase my return by about 5-8% a year (thats a big deal obviously). The new profit/loss info is below:

1/20/2010 -- Bought 100 TXN @ 24.36
1/20/2010 -- Sold To Open 1 TXN February $24 Call @ 1.03
1/28/2010 -- Dividend @ 0.12


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2333.00
Current Cost Average: $23.21
Commissions (Included In Cost): $2

Potential Annualized Gain If Called At Expiration (2/20/2010): 39.37%

Update Transaction - Gamestop (GME)

I don't believe GME will rebound any time soon now, and so I will sell a new call. The new profit/loss info is below:

11/16/2009 -- Bought 100 GME @ 24.35
11/16/2009 -- Sold To Open 1 GME December $24 Call @ 1.42
12/2/2009 -- Bought To Close 1 GME December $24 Call @ 0.20
12/4/2009 -- Sold To Open 1 GME January $24 Call @ 0.30
1/15/2010 -- Call Expired
1/21/2010 -- Sold To Open 1 GME April $23 Call @ 0.55


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2293.00
Current Cost Average: $22.28
Commissions (Included In Cost): $20

Downside Coverage: None

Possible Max Upside: 2.92%

Annualized Max Upside: 7.02%

Initial Transaction - J.C. Penney (JCP)

This is a new position in J.C. Penney. The new profit/loss info is below:

1/20/2010 -- Bought 100 JCP @ 25.86
1/20/2010 -- Sold To Open 1 JCP February $26 Call @ 1.04


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2482.00
Commissions (Included In Cost): $2


Downside Coverage (from current price of $25.86): 4.50%

Potential Annualized Gain If Called At Expiration (2/20/2010): 52.98%

Initial Transaction - Texas Instruments (TXN)

This is a new position in Texas Instruments. The company recently pre-announced earnings above expectations, in addition to having an ex-dividend date over the next month. Thus I consider there to be a low level of risk from the earnings announcement in the next few weeks. This is also my first position using Interactive Brokers, which I am slowly moving all my positions to. Thanks to "the options guru" (http://theoptionguru.com/blog/) who has videos on his blog with instructions on how to use IB (as it is a bit less user-friendly as other brokers). The nice thing is that trades only cost $1. Which means I save 80% of my commissions on every trade vs. what I have been paying. Based on the number of trades I placed in 2009, just by switching commissions I can increase my return by about 5-8% a year (thats a big deal obviously). The new profit/loss info is below:

1/20/2010 -- Bought 100 TXN @ 24.36
1/20/2010 -- Sold To Open 1 TXN February $24 Call @ 1.03


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2333.00
Commissions (Included In Cost): $2


Downside Coverage (from current price of $24.36): 4.23%

Potential Annualized Gain If Called At Expiration (2/20/2010): 32.38%

Update Transaction - Marathon Oil (MRO)

The position was continued in Marathon Oil, the company also pays a dividend in February. The profit/loss info is below:

11/30/2009 -- Bought 100 MRO @ 32.64
11/30/2009 -- Sold To Open 1 MRO December $33 Call @ 0.71
12/18/2009 -- Call Expired
12/21/2009 -- Sold To Open 1 MRO January $33 Call @ 0.15
1/15/2010 -- Call Expired
1/19/2010 -- Sold To Open 1 MRO February $33 Call @ 0.40


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3193.00
Commissions (Included In Cost): $15
Current Cost Average: $31.38

Possible Max Upside: 4.92%

Annualized Max Upside: 21.89%

Update Transaction - Discover Financial Services (DFS)

It was decided to continue the position in Discover Financial Services. The profit/loss info is below:

12/23/2009 -- Bought 100 DFS @ 14.81
12/23/2009 -- Sold To Open 1 DFS January $15 Call @ 0.45
12/29/2009 -- Dividend @ 0.02
1/19/2010 -- Sold To Open 1 DFS February $15 Call @ 0.4324


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1436.00
Commissions (Included In Cost): $0
Current Cost Average: $13.9076

Possible Max Upside: 6.91%

Annualized Max Upside: 42.75%

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Options Expiration Day - January 2010

The Covered Calls Investor Portfolio contained a total of 6 positions with January 2010 expirations, and 3 positions either with a Non-January expiration or no current covered call. The 3 positions with January expiration had the following results:

- 3 positions (JACK, LPHI, BKE) closed in-the-money. The annualized gain/loss results (after commissions) were:

Jack In The Box (JACK) => 26.61% (Held Since 9/29/2009)
Life Partners Holdings (LPHI) => 50.98% (Held Since 11/30/2009)
The Buckle (BKE) => 79.74% (Held Since 12/23/2009)

- 3 positions in the portfolio (GME, MRO, DFS) ended out-of-the-money.

The positions in the portfolio which did not have December expirations include:

United States Natural Gas (UNG)(300 Shares) - April $12 Call, 2 February $13 Calls

MEMC Electronics (WFR) (100 Shares) - April $16 Call

Verizon (VZ) (200 Shares) - April $31 Covered Call, July $32 Covered Call

Abbott Labs (ABT) (100 Shares) - May $52.50 Call

Juniper Networks (JNPR) - 1 February $24 CSP

Buffalo Wild Wings (BWLD) - February $40 Call

Arkansas Best (ABFS) - 1 February $27.50 CSP

Multi-Fine Elextronix (MFLX) - 1 February $25 CSP

Initial Transaction - Multi-Fineline Electronix (MFLX)

Today I decided to open a cash-secured put position in Multi-Fineline Electronix (MFLX). The profit/loss info is below:

1/15/2010 -- Sold To Open 1 MFLX February $25.00 Put @ 1.2324

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: N/A

Potential Gain If Not Assigned At Expiration: 4.93%

Potential Annualized Gain If Not Assigned At Expiration: 49.98%

Dividend Payment - Abbott Labs (ABT)

The first possible date for the stock to be called away passed, and it was not, so the dividend was collected. The new profit/loss info is below:

1/4/2010 -- Bought 100 ABT @ 54.22
1/4/2010 -- Sold To Open 1 ABT May $52.50 Call @ 3.35
1/13/2010 -- Dividend @ $0.40


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $5087.00
Commissions (Included In Cost): $5

Potential Annualized Gain If Called At Expiration (5/22/2010): 12.63%

Dividend Payment - The Buckle (BKE)

This is a new position being established in The Buckle, a retailer which focuses on denim apparel. It also currently yields about 2.73%. The profit/loss info is below:

12/23/2009 -- Bought 100 BKE @ 29.41
12/23/2009 -- Sold To Open 1 BKE January $30 Call @ 0.75
1/13/2010 -- Dividend @ $0.20


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2866.00
Commissions (Included In Cost): $5

Possible Max Upside: 5.02%

Annualized Max Upside: 76.41%

Closing Transaction - New York Community Bancorp (NYB)

I decided to close out this position, as it had basically reached its max profit level, and there was very little time value left. The stock catapulted a few months ago after news it would be taking over part of another banks operations which was going under. The final profit/loss info is below:

11/16/2009 -- Bought 100 NYB @ 11.48
11/16/2009 -- Sold To Open 1 NYB April $12 Call @ 0.55
1/11/2010 -- Bought To Close 1 NYB April $12 Call/Sold 100 NYB @ $11.89


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $1093.00
Commissions (Included In Cost): $10

Final Absolute Gain: 8.78%

Final Annualized Gain: 57.25%

Initial Transaction - Arkansas Best Corp. (ABFS)

Today I decided to open a cash-secured put position in Arkansas Best Corporation (ABFS). The profit/loss info is below:

1/11/2010 -- Sold To Open 1 ABFS February $27.50 Put @ 1.6824

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: N/A

Potential Gain If Not Assigned At Expiration: 6.12%

Potential Annualized Gain If Not Assigned At Expiration: 55.83%

Closing Transaction - Fluor (FLR)

After an extremely frustrating run with Fluor, I've finally closed out the position, and sadly lost $19 in total. The profit/loss info is below:

10/7/2009 -- Bought 100 FLR @ 47.07
10/7/2009 -- Sold To Open 1 FLR November $50 Call @ 1.70
11/20/2009 -- Call Expired
11/23/2009 -- Sold To Open 1 FLR December $45 Call @ 0.7
11/25/2009 -- Bought To Close 1 FLR December $45 Call @ 1.15
12/2/2009 -- Dividend @ 0.13
12/8/2009 -- Sold To Open 1 FLR January $45 Call @ 0.65
1/7/2010 -- Bought To Close 1 FLR January $45 Call & Sold 100 FLR @ 44.85

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: $4582.00
Current Cost Average: $45.04
Commissions (included in cost): $20

Final Gain: -0.42%

Final Annualized Gain: -1.66%

Initial Transaction - Buffalo Wild Wings (BWLD)

I'm a strong believer in investing what you know, and one thing I know from going up in Buffalo, NY is that everyone loves Buffalo wings. So I decided to put my money where my mouth is (no pun intended) and invest in B Dubya 3's (i.e. BWLD). The new profit/loss info is below:

1/7/2009 -- Bought 100 BWLD @ 39.65
1/7/2009 -- Sold To Open 1 BWLD February $40 Call @ 2.06


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3759.00
Commissions (Included In Cost): $6.75


Downside Coverage (from current price of $39.65): 5.2%

Potential Annualized Gain If Called At Expiration (2/20/2010): 47.91%

Initial Transaction - Juniper Networks (JNPR)

Today I decided to open a cash-secured put position in Juniper Networks (JNPR). The profit/loss info is below:

1/7/2010 -- Sold To Open 1 JNPR February $24 Put @ 0.7124

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: N/A

Potential Gain If Not Assigned At Expiration: 2.97%

Potential Annualized Gain If Not Assigned At Expiration: 24.62%

Closing Transaction - Suncor (SU)

The position in Suncor was closed today as the stock had risen so much that there was almost no time premium remaining. The profit/loss info is below:

12/22/2009 -- Bought 100 SU @ 33.92
12/22/2009 -- Sold To Open 1 SU January $34 Call @ 1.0924
1/7/2010 -- Bought To Close 1 SU January $34 Call @ 3.1375
1/7/2010 -- Sold 100 SU @ 37.039



The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3282.76
Commissions (Included In Cost): $7.50

Total Profit: 3.27%

Annualized Profit: 74.63%

Update Transaction - Verizon (VZ)

This was the other position in Verizon which was deeper ITM before expiration. I fully expected this position to be called away as it only had about 15 cents of time value remaining. I reviewed the possibility of rolling the position into July, similar to the other position, but found this would result in a lower annualized return, and so I decided to do nothing. The new profit/loss info is below:

11/16/2009 -- Bought 100 VZ @ 30.37
11/16/2009 -- Sold To Open 1 VZ April $31 Call @ 1.08
1/6/2009 -- Dividend @ 0.475

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2930.00
Current Cost Average: $28.815
Commissions (Included In Cost): $5


Downside Coverage (from current price of $30.37): 3.6%

Potential Annualized Gain If Called At Second Ex-Div. Date (4/7/2010): 19.04%

Potential Annualized Gain If Called At Expiration (4/17/2010): 21.64%

Dividend and Update Transaction - Verizon (VZ)

This is one of my two positions in Verizon which was not called away yesterday preceding the ex-dividend date. I was not that surprised by this position not being called as there was about 50 cents of time premium remaining, and the dividend is around 50 cents. As a result I rolled out my call from April to July to continue the ex-dividend strategy. This also keeps the possible annualized return the same as it would have been had I let the position expire in April. The new profit/loss info is below:

12/24/2009 -- Bought 100 VZ @ 33.3599
12/24/2009 -- Sold To Open 1 VZ April $32 Call @ 1.81
1/6/2010 -- Dividend @ 0.475
1/6/2010 -- Bought To Close 1 VZ April $32 Call @ 1.56
1/6/2010 -- Sold To Open 1 VZ July $32 Call @1.93


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3154.99
Current Cost Average: $30.705
Commissions (Included In Cost): $15


Downside Coverage (from current price of $31.92): 3.8%

Potential Annualized Gain If Called At Expiration (7/17/2010): 12.39%

Initial Transaction - Abbott Labs (ABT)

Today I opened a new position in Abbott Labs. This position will fall into my 10-20% return category, and is also part of the Long-Term Ex-Dividend strategy (LTEX) which utilizes ex-dividend dates as possible exit points for the position. The new profit/loss info is below:

1/4/2009 -- Bought 100 ABT @ 54.22
1/4/2009 -- Sold To Open 1 ABT May $52.50 Call @ 3.35


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $5087.00
Commissions (Included In Cost): $5


Downside Coverage (from current price of $54.22): 6.2%

Potential Annualized Gain If Called At First Ex-Div. Date (1/13/2010): 125.96%

Potential Annualized Gain If Called At Second Ex-Div. Date (4/13/2010): 14.71%

Potential Annualized Gain If Called At Expiration (5/22/2010): 12.63%