Last week's option exaspiration brought only one expiry - NOC. The paucity of transactions is explained by my seasonal fear, coupled with annual vacation away from the market, that few trades were entered in the early Fall.
Results were great: 13.6% annualized, after commissions. Here is the trade -
May 24, '10 I bought 200 NOC at just above $60 for $12,147;sold the 55 call (almost 10% below), rolled it once into Jan.(last week), called away at 55, for a $1102 net profit in 8 months.
My latest variation I am testing is capturing semi-annual and annual dividends with a 3-4 month ITM call to keep from an immediate callaway and additional revenue. It seems logical that getting the whole year at once should be more provident than quarterly. I don't know the tax consequences of this, as most of these - which I got from my acquaintance, Harry Domash of the SF Chronicle - Dividend Detective.com- are foreign stocks.
The annual dividend went ex-D Friday on Siemens -SI - I'll probably sell it in the next few days or weeks, depending on its price action. Long stocks usually rise 2:1 versus the short call, so I'm even more ahead if it rises - selling on weakness.
Stay tuned!
Monday, January 24, 2011
Saturday, January 8, 2011
2010 DITM TRADING RESULTS:
The results are in - happily, after adding up the 2009 trades that closed in 2010, and also the 2010 closing in 2010, the average percent combined was exactly the same as the DJIA for the year, with a lot more safety via the ITM calls! The 11.06% was a combined total of 13.27% for the 2009 opening trades and the 8.85% of the ones in 2010 - thanks to torpedoes of BP, UVV ( a tobacco company that tanked on earnings), and a misstep into the TLT (twice).
Since the DITM is designed to accommodate all markets but the BEAR (20%), the May FlashCrash was not a problem. 11% also happens to be about the historical average of stocks for over a century, and certainly much of an improvement over the past "Lost" decade of flat returns - with the expectancy of similar returns for the next decade.
The returns were calculated by averaging percentages, rather than total debits/credits, since the 5-6 month trading duration involves using the same dollars more than once, making an annualized number impossible.
The next variation will be to ladder annual and semi-annual dividends captured with a ITM call each month. Harry Domash of Dividend Detective (and the SF Chronicle) has kindly sent me a list to screen.
Since the DITM is designed to accommodate all markets but the BEAR (20%), the May FlashCrash was not a problem. 11% also happens to be about the historical average of stocks for over a century, and certainly much of an improvement over the past "Lost" decade of flat returns - with the expectancy of similar returns for the next decade.
The returns were calculated by averaging percentages, rather than total debits/credits, since the 5-6 month trading duration involves using the same dollars more than once, making an annualized number impossible.
The next variation will be to ladder annual and semi-annual dividends captured with a ITM call each month. Harry Domash of Dividend Detective (and the SF Chronicle) has kindly sent me a list to screen.
Monday, January 3, 2011
BOOKS ITM-CC PROFIT/ LOSS
(soldStock)
DATE STOCK NUMBER BUY STOCK DIV'D DIV'D ANN Q$. DIV'D OPTION CALL RE-BOT/ ReSOLD 12/31/2010 PARTIAL TOTAL ANN.NET
SYMBOL SHARES PRICE AMOUNT Ex-Date PayDate DIVD% DIVD AMT SYMBOL SOLD Rolled* CALL PRICE-opts RETURN RETURN RETURN
10/13/2009 NM 1000 5 5009 16-Dec 7-Jan 5.40 0.06 60 NMCA 802 4991 844 40.40% NM
10/21/2009 DD 100 34.01 3410 12-May 11-Jun 4.84 0.41 143 7/17/10 30 435 420 495 2991 173 8.70% DD
11/23/2009 LEG 300 19.8 5949 11-Dec 15-Jan 5.33 0.26 78 LEGCW 808 5241 178 12.00% LEG
11/24/2009 LMT 200 77.06 15421 25-Feb 26-Mar 3.26 0.62 252 LMTLO 520 560 1088 14991 870 16.92% LMT
12/7/2009 HUN 500 10.68 5349 11-Dec 31-Dec 3.78 0.10 50 HUNBI 1011 891 partial100 >>>>>> HUN
12/7/2009 HUN closed 3591 194 14.50% HUN
12/11/2009 XLU 200 31.64 6337 18-Mar 30-Jun 3.90 0.31 253 9/18/10 30 396 62 240 XLU
XLU 17-Dec 318 416 5991 579 9.14% XLU
12/18/2009 DVY 200 43.78 8765 22-Dec 28-Dec 4.16 0.40 86 DYVFN 934 7991 246 11.20% DVY
12/22/2009 PM 100 49.46 4955 9-Jul 4.71 0.58 174 9/18/10 45 414 0 240 4491 364 9.79% PM
12/22/2009 DRI 200 35.96 7200 7-Jan 1-Feb 2.81 0.25 50 DRIDM 810 6591 251 10.50% DRI
12/30/2009 TLT 100 90.37 9046 29-Jan 5-Feb 3.91 0.32 0 Mar.87 406 8691 51 6.77% TLT
12/30/2009 VZ 200 33.39 6687 7-Jul 2-Aug 6.13 0.48 190 Apr.31 506 0 242 5691 VZ
7/9/2010 VZ 200 26.69 5372 7-Jul 2-Aug 95 VZ1.Oct.24 918 0 4560 VZ
7/6/2010 FTR 48 0-spin 0 part of VZ 10 328 FTR
7/9/2010 FTR 100 7.4 740 part of VZ 231 48FTR
7/9/2010 FTR 300 48FTR
25
296 vz/ftr
TOTAL: 84240 1441 7960 1360 2721 74386 4046 4.80% 86508
7/9/2010 FTR VZ/ftr TOTAL 12800 295 1424 0 242 11135 4.60% 4FTR
***************************************************************************************************************************************************************************
January 2010 56739 2009 Total January 2010
1/29/2010 BP 100 56.57 5666 10-Feb 7-Mar 5.86 0.84 84 Jul.50 721 109 4420 .ls-550 9.70% BP
2/2/2010 ETN 100 64.97 6506 5-May 28-May 3.12 0.50 100 Jul.60 736 5991 321 9.87% ETN
2/9/2010 WM 200 31.75 6359 28-Feb 18-Jun 3.70 0.29 189 Jan. 30/11 568 622 804 5991 571 10.80% WM
2/26/2010 MRK 200 36.95 7400 11-Mar 8-Jul 4.16 0.38 152 Oct.34 758 410 600 6791 491 11.40% MRK
3/25/2010 ABT 200 53.63 10735 15-Oct 15-Nov 3.27 0.44 176 Jan.46 880 0 1000 9191 512 8.20% ABT
3/25/2010 UVV 200 54 10810 8-Apr 10-May 3.47 0.47 94 Aug.50 1250 190 7991 .ls-1665 15.40% UVV
3/26/2010 NUE 200 45.93 9196 28-Sep 11-Nov 3.27 0.36 216 Sep.39 1058 0 330 >>>> NUE
3/26/2010 NUE 200 45.93 Jan.37 366 985 7391 418 6.06% NUE
5/12/2010 DIA 500 108.85 54434 sept. Mnthly 2.40 .20m 524 Sep.102 4671 50991 1752 9.66% DIA
5/24/2010 CTL 200 33.57 6723 4-Jun 21-Jun 8.50 0.72 145 Oct.35 182 0 6991 595 26.60% CTL
5/27/2010 KFT 200 28.79 5767 28-Jun 14-Jul 4.08 0.29 58 Sep.27 508 0 5391 190 9.88% KFT
6/1/2010 BP 200 38.05 7617 5-Aug 21-Sep 7.82 0.84 Oct.35 1218 930 6945 .ls-546 7.17% BP
11/13/2009 BX 300 15.27 4590 11-Mar 31-Mar 7.88 0.30 210 6/19/10 12 892 356 742 rollout BX
BX 10 2946 .loss-166 BX
5/7/2009 GDX 200 36.7 7349 0 22 6/19/10 40 1468 2344 1842 7991 1630 20.50% GDX
6/25/2010 EIX 200 32.8 6569 28-Jun 31-Jul 3.77 0.31 126 Oct.16 30 649 0 5991 197 9.00% EIX
7/14/2010 PFE 400 14.92 5977 4-Aug 1-Sep 4.87 0.18 0 Dec.13 881 5191 95 19.07% PFE
7/14/2010 CAT 100 65.55 6564 16-Jul 20-Aug 2.64 0.44 44 Nov.60 879 5991 350 21.30% CAT
7/28/2010 IYR 200 52.09 10427 24-Sep Sep.30 3.45 0.45 93 Jan.48 1226 9591 483 11.10% IYR
8/2/2010 DD 100 41.65 4174 6-Aug 10-Sep 4 0.41 41 Jan.37 571 3691 129 12.40% DD
10/25/2010 TLT 300 102.13 30648 1-Nov 7-Nov 3.6 .32M 96 Mar.98 1648 521 3.2 28251 1174ls TLT
12/3/2009 DUK 400 17.31 6933 5/19 16-Jun 5.60 0.25 290 Jul.16 101 0 328 6391 302 4.75% DUK
7/16/2010 DUK Aug.11 16-Sep Jan.16/11 372 497 see above DUK
11/29/2010 MAT 500 25.54 12779 1-Dec 16-Dec 3.23 .83an 415 Apr.24 1051 1244 12781 224 21.00% MAT
TOTAL: 227223 3075 21916 7464 7128 206899 4705 2.07% 4331
2009 buys 84240 1441 7960 1360 2721 74386 4046 4.80%
Trades Closed in 2010: 311463 4516 29876 8824 9849 281285 8751 2.80%
(soldStock)
DATE STOCK NUMBER BUY STOCK DIV'D DIV'D ANN Q$. DIV'D OPTION CALL RE-BOT/ ReSOLD 12/31/2010 PARTIAL TOTAL ANN.NET
SYMBOL SHARES PRICE AMOUNT Ex-Date PayDate DIVD% DIVD AMT SYMBOL SOLD Rolled* CALL PRICE-opts RETURN RETURN RETURN
10/13/2009 NM 1000 5 5009 16-Dec 7-Jan 5.40 0.06 60 NMCA 802 4991 844 40.40% NM
10/21/2009 DD 100 34.01 3410 12-May 11-Jun 4.84 0.41 143 7/17/10 30 435 420 495 2991 173 8.70% DD
11/23/2009 LEG 300 19.8 5949 11-Dec 15-Jan 5.33 0.26 78 LEGCW 808 5241 178 12.00% LEG
11/24/2009 LMT 200 77.06 15421 25-Feb 26-Mar 3.26 0.62 252 LMTLO 520 560 1088 14991 870 16.92% LMT
12/7/2009 HUN 500 10.68 5349 11-Dec 31-Dec 3.78 0.10 50 HUNBI 1011 891 partial100 >>>>>> HUN
12/7/2009 HUN closed 3591 194 14.50% HUN
12/11/2009 XLU 200 31.64 6337 18-Mar 30-Jun 3.90 0.31 253 9/18/10 30 396 62 240 XLU
XLU 17-Dec 318 416 5991 579 9.14% XLU
12/18/2009 DVY 200 43.78 8765 22-Dec 28-Dec 4.16 0.40 86 DYVFN 934 7991 246 11.20% DVY
12/22/2009 PM 100 49.46 4955 9-Jul 4.71 0.58 174 9/18/10 45 414 0 240 4491 364 9.79% PM
12/22/2009 DRI 200 35.96 7200 7-Jan 1-Feb 2.81 0.25 50 DRIDM 810 6591 251 10.50% DRI
12/30/2009 TLT 100 90.37 9046 29-Jan 5-Feb 3.91 0.32 0 Mar.87 406 8691 51 6.77% TLT
12/30/2009 VZ 200 33.39 6687 7-Jul 2-Aug 6.13 0.48 190 Apr.31 506 0 242 5691 VZ
7/9/2010 VZ 200 26.69 5372 7-Jul 2-Aug 95 VZ1.Oct.24 918 0 4560 VZ
7/6/2010 FTR 48 0-spin 0 part of VZ 10 328 FTR
7/9/2010 FTR 100 7.4 740 part of VZ 231 48FTR
7/9/2010 FTR 300 48FTR
25
296 vz/ftr
TOTAL: 84240 1441 7960 1360 2721 74386 4046 4.80% 86508
7/9/2010 FTR VZ/ftr TOTAL 12800 295 1424 0 242 11135 4.60% 4FTR
***************************************************************************************************************************************************************************
January 2010 56739 2009 Total January 2010
1/29/2010 BP 100 56.57 5666 10-Feb 7-Mar 5.86 0.84 84 Jul.50 721 109 4420 .ls-550 9.70% BP
2/2/2010 ETN 100 64.97 6506 5-May 28-May 3.12 0.50 100 Jul.60 736 5991 321 9.87% ETN
2/9/2010 WM 200 31.75 6359 28-Feb 18-Jun 3.70 0.29 189 Jan. 30/11 568 622 804 5991 571 10.80% WM
2/26/2010 MRK 200 36.95 7400 11-Mar 8-Jul 4.16 0.38 152 Oct.34 758 410 600 6791 491 11.40% MRK
3/25/2010 ABT 200 53.63 10735 15-Oct 15-Nov 3.27 0.44 176 Jan.46 880 0 1000 9191 512 8.20% ABT
3/25/2010 UVV 200 54 10810 8-Apr 10-May 3.47 0.47 94 Aug.50 1250 190 7991 .ls-1665 15.40% UVV
3/26/2010 NUE 200 45.93 9196 28-Sep 11-Nov 3.27 0.36 216 Sep.39 1058 0 330 >>>> NUE
3/26/2010 NUE 200 45.93 Jan.37 366 985 7391 418 6.06% NUE
5/12/2010 DIA 500 108.85 54434 sept. Mnthly 2.40 .20m 524 Sep.102 4671 50991 1752 9.66% DIA
5/24/2010 CTL 200 33.57 6723 4-Jun 21-Jun 8.50 0.72 145 Oct.35 182 0 6991 595 26.60% CTL
5/27/2010 KFT 200 28.79 5767 28-Jun 14-Jul 4.08 0.29 58 Sep.27 508 0 5391 190 9.88% KFT
6/1/2010 BP 200 38.05 7617 5-Aug 21-Sep 7.82 0.84 Oct.35 1218 930 6945 .ls-546 7.17% BP
11/13/2009 BX 300 15.27 4590 11-Mar 31-Mar 7.88 0.30 210 6/19/10 12 892 356 742 rollout BX
BX 10 2946 .loss-166 BX
5/7/2009 GDX 200 36.7 7349 0 22 6/19/10 40 1468 2344 1842 7991 1630 20.50% GDX
6/25/2010 EIX 200 32.8 6569 28-Jun 31-Jul 3.77 0.31 126 Oct.16 30 649 0 5991 197 9.00% EIX
7/14/2010 PFE 400 14.92 5977 4-Aug 1-Sep 4.87 0.18 0 Dec.13 881 5191 95 19.07% PFE
7/14/2010 CAT 100 65.55 6564 16-Jul 20-Aug 2.64 0.44 44 Nov.60 879 5991 350 21.30% CAT
7/28/2010 IYR 200 52.09 10427 24-Sep Sep.30 3.45 0.45 93 Jan.48 1226 9591 483 11.10% IYR
8/2/2010 DD 100 41.65 4174 6-Aug 10-Sep 4 0.41 41 Jan.37 571 3691 129 12.40% DD
10/25/2010 TLT 300 102.13 30648 1-Nov 7-Nov 3.6 .32M 96 Mar.98 1648 521 3.2 28251 1174ls TLT
12/3/2009 DUK 400 17.31 6933 5/19 16-Jun 5.60 0.25 290 Jul.16 101 0 328 6391 302 4.75% DUK
7/16/2010 DUK Aug.11 16-Sep Jan.16/11 372 497 see above DUK
11/29/2010 MAT 500 25.54 12779 1-Dec 16-Dec 3.23 .83an 415 Apr.24 1051 1244 12781 224 21.00% MAT
TOTAL: 227223 3075 21916 7464 7128 206899 4705 2.07% 4331
2009 buys 84240 1441 7960 1360 2721 74386 4046 4.80%
Trades Closed in 2010: 311463 4516 29876 8824 9849 281285 8751 2.80%
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