Wednesday, December 29, 2010


Latest trade before year-end (and before I wrap up the 2010 results next week: Nucor Steel (NUE) was bought last March at @$45 (200 shares)and 2 $39 calls were sold below it. With a dividend of 3.27%, which grew as the stock 3 months later went into a 37-40 trading range for 5 months. It was called away overnite (ex-dividend was today) at another lower call sold later at $37. So instead of a $5 to 8 loss in the stock, DITM resulted in a 4.55% gain over 9 months, or 6.1% annualized. Not great, but better than a loss!

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