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%
Jake,
ReplyDeleteThanks for the plug in your post. Did you see the string of comments in the justcoveredcall group in Yahoo? There was quite a heated discussion regarding IB TWS vs other broker trading platforms.
Jeff