Friday, October 15, 2010


Today I again rolled out/down my DITM call options to April 2011, from the 42 call to 41. Since buying the stock at $49.87 in Aug. of '09.
To prove that DITM is a "defensive" strategy, the stock is currently down 6 1/2 points - I have received $2042 in call premiums and dividends (4.26%), for a 14.2% gain over the 20 months to April 2011 (if called away at $41, and including 2 more dividends). Annualized, that is 8.5% with a safety net for the price drop of $650 (another 2.2%).

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