2/2/09 Bought NLY @ 15.27
2/2/09 Sold Feb 15's @ 1.00
2/23/09 Sold Mar 15's @ .57
3/12/09 Bought Mar 15's @ .05
3/12/09 Sold Apr 14's @ .55
The Mar 15's were basically worthless but the time that we were going to have to wait until options expiration was not. Therefore, I bought them back and sold the next month options. Cost basis less commissions is 13.20. This is a good example of how covered calls can make a stock that is dropping in price still be profitable.
NLY will be paying a sweet dividend soon which in my book lowers the cost basis even more. This trade is in a Roth IRA so there is no tax difference between premiums collected and dividends received.
Thursday, March 12, 2009
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1 comments:
NLY has also done well for me. I currently have 2 Covered Calls outstanding for the Apr09 16 and 2 Covered Puts for the Mar09 14. I may get assigned the Mar09 Puts next week which is okay by me. I like the dividends and the recurring revenue from selling the Covered Calls, both of which effectivly lower my basis or cost of owning the stock and raising my effective dividend yield.
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