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%

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%

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%

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%

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%

Dividend Payment - Discover Financial Services (DFS)

Dividend Update. 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


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: $14.34

Possible Max Upside: 3.90%

Annualized Max Upside: 59.31%

Dividend Payment - Fluor (FLR)

This is a dividend update for Fluor (FLR). 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

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: $4582.00
Current Cost Average: $45.69

Potential Gain: N/A

Potential Annualized Gain If Called At Expiration: N/A

Dividend Payment - Intel (INTC)

This is simply an update to the Intel position which notes the passing of the ex-dividend date. The new profit/loss info is below:

10/21/2009 -- Bought 100 INTC @ 19.795
10/21/2009 -- Sold To Open 1 INTC December $19 Call @ 1.14
11/4/2009 -- Dividend @ 0.14

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: $1865.50

Potential Annualized Gain If Called At Expiration (12/19/2009): 14.43%

Downside Protection: 6.5%

Dividend Payment - SIMS Metal Management (SMS)

This is simply a dividend update for the position in SMS. I actually had forgotten about this dividend payment, even though it was one of the original reasons I found the stock. The new profit/loss info is below:

9/28/2009 -- Bought 100 SMS @ 19.69
9/28/2009 -- Sold To Open 1 SMS October $20 Call @ 0.7
10/6/2009 -- Dividend @ 0.08


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: $1899.00

Downside Protection: 3.5%

Potential Gain If Called At Expiration: 5.48%

Potential Annualized Gain If Called At Expiration: 105.21%

Dividend Payment - Best Buy (BBY)

This is simply a dividend update for my position in BBY. The new profit/loss info is below:

6/12/2009 -- Bought 100 BBY @ 37.54
6/12/2009 -- Sold To Open 1 BBY July $39 Call @ 1.54
6/12/2009 -- Bought To Open 1 BBY June $35 Put @ 0.6
6/18/2009 -- Bought To Close 1 BBY July $39 Call @ 0.50
6/18/2009 -- Sold To Close 1 BBY June $35 Put @ 1.1
6/23/2009 -- Sold To Open 1 BBY July $38 Call @ 0.20
7/2/2009 -- Dividend @ 0.14
7/18/2009 -- Call Expired
7/20/2009 -- Sold To Open 1 BBY August $38 Call @ 0.65
8/12/2009 -- Bought To Close 1 BBY August $38 Call @ 0.6
8/12/2009 -- Sold To Open 1 BBY September $39 Call @ 1.20
9/15/2009 -- Bought To Close 1 BBY September $39 Call @ 1.52
9/15/2009 -- Sold To Open 1 BBY October $39 Call @ 2.39
9/15/2009 -- Bought To Open 1 BBY October $32 Put @ 0.35
10/4/2009 -- Dividend Payment @ 0.14

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3660.00

Possible Max Upside: 14.58%

Annualized Max Upside: 41.91%

Dividend Payment - Lockheed-Martin (LMT)

This is an update to the position in Lockheed-Martin (LMT) which passed an ex-dividend date. The new profit/loss info is below:

8/25/2009 -- Bought 100 LMT @ 74.30
8/25/2009 -- Sold To Open 1 LMT September $75 Call @ 1.30
8/28/2009 -- Dividend @ 0.57

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 7300.00

Potential Gain If Called At Expiration: 3.52%
PotentialAnnualized Gain If Called At Expiration: 51.40%

Dividend Payment - McGraw-Hill (MHP)

For better or worse, MHP was not ITM at close the day before its ex-dividend date. As such the position was not called away, and the dividend was paid. The new profit/loss info is below:

8/21/2009 -- Bought 100 MHP @ 29.66
8/21/2009 -- Sold To Open 1 MHP September $30 Call @ 0.86
8/24/2009 -- Dividend @ 0.23

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 2890.00

Potential Gain If Called At Expiration: 4.57%
PotentialAnnualized Gain If Called At Expiration: 57.49%

Dividend Update - Penn-West Energy (PWE)

This is simply an update to this position for a recent dividend update. Unfortunately, the position was not called away before the ex-div so I will be holding it until expiration barring any unforeseen substantial increase in share price. The performance metrics are below:

7/21/2009 -- Bought 100 PWE @ 12.79
7/21/2009 -- Sold To Open 1 PWE August $12.50 Call @ 0.6
7/29/2009 -- Dividend @ 0.13


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 12.19


Maximum Potential Upside: 3.2%

Potential Annualized Gain: 36.49%

Dividend Payment - Best Buy (BBY)

This is simply an update to the BBY position, showing the passing of an ex-div date. The new profit/loss info is below:

6/12/2009 -- Bought 100 BBY @ 37.54
6/12/2009 -- Sold To Open 1 BBY July $39 Call @ 1.54
6/12/2009 -- Bought To Open 1 BBY June $35 Put @ 0.6
6/18/2009 -- Bought To Close 1 BBY July $39 Call @ 0.50
6/18/2009 -- Sold To Close 1 BBY June $35 Put @ 1.1
6/23/2009 -- Sold To Open 1 BBY July $38 Call @ 0.20
7/2/2009 -- Dividend @ 0.14


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $3660.00


Downside Coverage: None
Possible Max Upside: 6.5%

Annualized Max Upside: 65.9%

Dividend Payment - Mack-Cali Realty (CLI)

This is simply an update to this position showing the passing of an ex-div date. Although the stock ended up being above $22.50 on the day before the ex-div date it was not called away. There are still two other CLI positions which remain uncovered, I will not be writing separate posts for those positions, but they also received the same dividend. The new profit/loss info is below:


Various -- Bought 100 Shares of CLI @ 21.18
3/2/2009 -- Sold To Open 1 July $22.50 Call @ 1.2225
3/10/2009 -- Bought To Close 1 July $22.50 Call @ 1
4/1/2009 -- Dividend @ 0.45
4/3/2009 -- Sold To Open 1 May $22.50 Call @ 2.50
5/15/2009 -- May $22.50 Expired
5/18/2009 -- Sold To Open 1 June $25 Call @ 0.95
6/19/2009 -- June $25 Call Expired
6/22/2009 -- Sold To Open 1 July $22.50 Call @ 0.75
7/1/2009 -- Dividend @ 0.45

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2118.00


Downside Coverage (based on current price, 23): 31.2%
Possible Max Upside: 33.52%

Annualized Max Upside: 88.66%

Dividend Payment - Bristol-Myers Squibb (BMY)

This is simply a post to note the ex-dividend date for BMY. Just as an update, BMY has dropped about 5% since I sold the August call on June 25, I may buy back the call if it gets down to about 5 cents. The new profit/loss info is below:

4/6/2009 -- Bought 100 BMY @ 20.48
4/6/2009 -- Sold To Open 1 BMY April $21 Call @ .34
4/17/2009 -- Covered Call Expired
4/20/2009 -- Sold To Open 1 BMY May $21 Call @ .65
4/29/2009 -- Bought To Close 1 BMY May $21 Call @ .11
5/12/2009 -- Sold To Open 1 BMY June $21 Call @ .55
5/27/2009 -- Bought To Close 1 BMY June $21 Call @ .18
6/25/2009 -- Sold To Open 1 BMY August $22 Call @ .35
7/1/2009 -- Dividend @ 0.31


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2048.00


Downside Coverage (from current price of $20.14): 7.8%
Possible Max Upside: 17.03%

Annualized Max Upside: 45.05%

Dividend Payment - Omnicare (OCR)

This is simply an update to the position due to the passage of an ex-div date. The purchase info is below.

4/27/2009 -- Bought 100 OCR @ 26.465
4/27/2009 -- Sold To Open 1 OCR May $27.50 Call @ 1.25
5/15/2009 -- Call Option Expired
5/19/2009 -- Sold To Open 1 OCR June $27.5 Call @ 0.95
6/6/2009 -- Bought To Close 1 OCR June $27.5 Call @ 0.15
6/9/2009 -- Sold To Open 1 OCR June $25 Call @ 0.45
6/12/2009 -- Dividend Payment @ 0.0225


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2646.50

If stock is called at expiration:

Downside Coverage (based on current share price): 5.25%
Possible Max Upside: 5.23%

Annualized Max Upside: 35.32%