Paper Trade Followup

This is a followup on the WLL paper trade comparing selling front month options and further out options. The stock closed above the strike price so this position would have been closed on Friday. Again, like the EBAY paper trade example, it's no surprise that the return from selling front month calls was better. This ends this paper trade experiment.

Here's a summary of the returns.

WLL - Paper Trade #1 (Aug)

Stock Investment: $4,164.00
Income Generated: $433.00
Net Profit: $269.00
Percent Return: 6.46%
Annualized Return: 42.11%
Days to Expiration: 56 days

Trade History:

27-Jul-07 - Initial Stock Position - BTO 100 WLL @ 41.64 -
27-Jul-07 - Initial Call Option - STO 1 Aug07 40.00 Call @ 2.34 - Expired
20-Aug-07 - Continued Trade - STO 1 Sep07 40.00 Call @ 2.09 - Exercised
21-Sep-07 - Option Exercised - EX 1 Aug07 40.00 Call @ 40.00 -

WLL - Paper Trade #2 (Sep)

Stock Investment: $4,164.00
Income Generated: $329.00
Net Profit: $165.00
Percent Return: 3.96%
Annualized Return: 25.83%
Days to Expiration: 56 days

Trade History:

27-Jul-07 - Initial Stock Position - BTO 100 WLL @ 41.64 -
27-Jul-07 - Initial Call Option - STO 1 Sep07 40.00 Call @ 3.29 - Exercised
21-Sep-07 - Option Exercised - EX 1 Sep07 40.00 Call @ 40.00 -

WLL - My Real Position

Stock Investment: $4,102.00
Income Generated: $299.00
Net Profit: $197.00
Percent Return: 4.80%
Annualized Return: 31.30%
Duration of Trade: 56 days

Trade History:

27-Jul-07 - Initial Stock Position - BTO 100 WLL @ 41.02 -
27-Jul-07 - Initial Call Option - STO 1 Sep07 40.00 Call @ 2.99 - Exercised
21-Sep-07 - Option Exercised - EX 1 Sep07 40.00 Call @ 40.00 -