04-10-2015, 08:23 AM
(This post was last modified: 04-10-2015, 09:03 AM by Main Street Stock Investor.)
(04-09-2015, 06:24 PM)hendi_alex Wrote: Bought MPW on 3/6 for $14.34. Sold on 4/6 for $15.34, plus got one dividend. Today rebought the shares at $14.84 and then immediately sold Oct $15 calls for 60 cents. Not counting the capital gain from the earlier trade, that brings the net cost back down to the original price paid in March. If called, will net about 4.6% in six months plus gives a chance at two dividends which would bring in another 2.9%. Not counting dividends, the trade and rebuy has dropped the out of pocket per share cost down to $13.56, which is a much more comfortable level given the specter of rising rates. If these shares survive October expiration, they will go into the long term pile with no more call writing.
Good strategy and trade.
Sold partial position in GE this morning:
GE: Purchase date/price = 1/14/15 @$23.66
Sale Date/price = 4/10/15 @$27.48
Gain = $3.82/share for 3 month holding period
% Gain = 16%% for the 3 month holding period, 65% annualized