Thursday, September 15, 2011


1 day before expiry, I rolled out my CHV call to January, from the 90 strike up to 92.50. The stock is currently at 98.85, and I bought it at 101.75 in May ( a $2.90 loss before commissions);then selling the 90 call as a safety net. So far taking in $1437 from the (net of buyback)calls, and $234 from dividends (assuming the Nov. one), net of commissions will be $1671, plus $9241 makes a total credit of $$10,912, less my initial cost of $10,184 ($728), over 8 months is an annualized 10.7%, unless the stock is below $92 1/2 by January 2012. Definitely better than MMFs or CDs!
BTW, had I just bought the stock, sans DITM calls, even with dividends, I would have gained only $56 for the 8 months - or 0.8% annualized.

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