Initial Transaction - ConocoPhillips (COP)

As part of the constant revision of my covered call investment strategy, this position is intended to provide a potential yield of at least 10%, and also have the possibility of being called away at two different points. The stock could be called before the first ex-dividend date, or at expiration. The lowest annualized return is above 10% for any of these scenarios. Additionally, the call being sold is substantially ITM, and relatively far out expiration. Lastly, the stock provides a hefty dividend for both additional protection and income. This position is in ConocoPhillips an integrated oil & gas company which has a hefty 5% dividend. The profit/loss info is below:

8/13/2009 -- Bought 100 COP @ 43.93
8/13/2009 -- Sold To Open 1 COP January $39 Call @ 6.49

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 3759.00

Potential Annualized Gain If Called At First Ex-Div Date (~10/29/2009): 17.85%

Potential Annualized Gain If Called At Expiration (1/16/2010): 14.69%

Downside Protection: 14.4%

Closing Transaction - Alpha Natural Resources (ANR)

As the market has improved, ANR has skyrocketed to the point where there was essentially no time premium left on it. As a result I decided to exit the position early in order to get some more cash, and also lock in my gains so as to protect myself in case of a pullback. The final profit/loss info is below:

5/20/2009 -- Bought 100 ANR @ 29.26
5/20/2009 -- Sold To Open 1 ANR June $32.50 Call @ 1.24
5/20/2009 -- Bought To Open 1 ANR June $20 Put @ .3
5/21/2009 -- Bought To Close 1 ANR June $32.50 Call @ .55
5/22/2009 -- Sold To Open 1 ANR June $27.50 Call @ 1.45
5/27/2009 -- Bought To Close 1 ANR $27.50 Call @ 2.18
5/27/2009 -- Sold To Open 1 ANR $30 June Call @ 1.09
6/16/2009 -- Bought To Close 1 ANR $30 June Call @ 0.15
6/16/2009 -- Bought To Open 1 ANR $20 June Put @ 0.5
6/25/2009 -- Sold To Open 1 ANR $30 August Call @ 1.90
7/6/2009 -- Bought To Close 1 ANR $30 August Call @ 0.5
7/9/2009 -- Sold To Open 1 ANR $30 August Call @ 0.75
7/28/2009 -- Bought To Open 1 ANR $27.5 August Put @ 0.60
8/13/2009 -- Call Bought - Stock Sold @ 29.90


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2926.00

Final Upside: 8.29%

Annualized Max Upside: 35.62%

Update Transaction - Best Buy (BBY)

As I was going to be going on vacation out of the country the following week, I decided to roll this call forward to September, as well as raising the strike price. 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

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

Downside Coverage: 5.57%
Possible Max Upside: 12.75%

Annualized Max Upside: 47.01%

Initial Transaction - Marathon Oil (MRO)

This position is another example of the ex-dividend date covered call option strategy which I am testing. The idea with these is to purchase a stock a few days before an ex-dividend date, and sell a covered call for the current month which is as much in the money as possible, but will still return at least 1% if called before the ex-dividend date. Marathon Oil is an integrated oil company which participates in all parts of the oil supply chain, both upstream and downstream. The stock has about a 5% dividend yield which will be valuable even if the position is not called away. The profit/loss info is below:

8/7/2009 -- Bought 100 MRO @ 30.70
8/7/2009 -- Sold To Open 1 MRO August $30 Call @ 1.07

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Cost Basis: 2963.00

Potential Gain If Called At Ex-Div Date: 1.25%
Potential Annualized Gain If Called At Ex-Div Date: 45.58%

Initial Transaction - The Buckle (BKE)

I decided to open a position in a retailer as a way to cash in on the coming turnaround in consumer discretionary spending. Buckle is a medium-priced retailer of mostly denim apparel for teens and young adults. The store focuses mainly on selling jeans, both their own brand, as well as other brands such as rockin' republic and big star are some examples. After releasing same-store sales for July, the stock dropped by about 15%, which allowed a perfect entry point in my opinion. The store has such high expectations that it would have been almost impossible for them to be met in the current economic climate. Same store sales were expected to be 10%, and they only came in at 2% which led to the stock plummet. In my opinion however, the fact that the sales are still increasing are the important part, and the stock also sports a 3% dividend yield which is quite unusual for a growing retailer. As such I decided to establish a covered call position for September. The new profit/loss info is below:

8/7/2009 -- Bought 100 BKE @ 26.70
8/7/2009 -- Sold To Open 1 BKE $30 September Call @ 0.70

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2635.00

Downside Coverage: 2.62%
Possible Max Upside: 13.66%

Annualized Max Upside: 115.97%

Closing Transaction - Mack-Cali Realty (CLI)

Unfortunately, I had very bad timing in the case of Mack-Cali Realty, in that I sold a call right before the stock decided to jump 35% in three weeks. As a result my remaining positions were both heavily in the money, and I decided to close them out early to free up some cash. The final profit/loss info is below:

Various -- Bought 100 CLI @ 22.90
2/23/2009 -- Sold To Open 1 CLI July $25 Call @ 0.4592
3/6/2009 -- Bought To Close 1 CLI July $25 Call @ 0.1408
4/1/2009 – CLI Dividend @ .45
4/9/2009 – Sold To Open 1 CLI July $25 Call @ 2.1426
4/24/2009 -- Bought To Close 1 CLI July $25 Call @ 4.9474
4/24/2009 -- Sold To Open 1 CLI June $30 Call @ 1.9325
5/7/2009 -- Bought To Close 1 CLI June $30 Call @ 0.60
5/7/2009 -- Sold To Open 1 CLI June $25 Call @ 1.5926
6/11/2009 -- Bought To Close 1 CLI June $25 Call @ 0.25
7/1/2009 - Dividend @ .45
7/16/2009 - Sold To Open 1 CLI August $25 Call @ 0.9925
8/5/2009 - Bought To Close/Sold 100 CLI @ 24.7019


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2290.00


Final Profit: 27.26%

Annualized Max Upside: 61.42%

Closing Transaction - Mack-Cali Realty (CLI)

This is closing info for my other position in Mack-Cali realty. The profit/loss info is below:


Various -- Bought 100 CLI @ 22.90
2/23/2009 -- Sold To Open 1 CLI July $25 Call @ 0.4592
3/6/2009 -- Bought To Close 1 CLI July $25 Call @ 0.1408
4/1/2009 – CLI Dividend @ .45
4/9/2009 – Sold To Open 1 CLI May $22.5 Call @ 2.8925
5/15/2009 – May $22.5 Call Expired
5/18/2009 – Sold To Open 1 CLI June $22.50 Call @ 1.8925
6/19/2009 - June $22.50 Call Expired
7/1/2009 - Dividend @ .45
7/7/2009 - Sold To Open 1 CLI August $22.50 Call @ 1.1425
8/4/2009 -- Bought To Close/Sold 100 CLI @ 22.322

The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2290.00


Final Profit: 15.30%

Annualized Max Upside: 34.26%