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%
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