Last week marks the anniversary of not only DITM (four years of testing), but my Silver one on the planet (75). As a reward, the DITM gave me a super present - calling away my Seagate Tech stock (STX) with a Sept.(??) 28 call option.
As mentioned in an earlier column, this event is more frequent and likely than a rare torpedo stock, and makes up for the latter. Metrics on STX were:
Bot 200 stock on Dec. 2012, sold 2 March 28 ITM calls , which were rolled up to the Sep. 28s on a rising market. Although DITM doesn't participate directly from a cyclical Bull market it does have a cushion expanded, and the good possibility of an earlier call-away, heightening the annualized profit by freeing up money for another trade.
Profit from dividends, calls and resale: $592 on a $5809 investment for 5 months - annualized return: 24.46%. Also called away last week - DIA for a lot less (4.5% ann.), and MCHP, which I did in two lots. The first was three months which returned 13.78% ann., and the recent trade - 15 months- only 9.19% ann. - typical, that the longer the holding, the less the return (and monitoring as well).
Four year small IRA return - just under 10%, no thanks to gold and oil/resource stocks, which are still providing dividends and call decay.
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