TGT Position 1 - Adjustment

The following adjustment was made today on the first TGT position:

09-Apr-09 - Buy Back & Roll Out/Up - BTC 1 Apr09 32.50 Call @ -7.41 -
09-Apr-09 - Interim Trade - STO 1 Jul09 40.00 Call @ 3.89 -

The TGT Apr09 32.50 call was ITM with less than $0.05 time value remaining. This position would have resulted in a loss if called, so I rolled it out/up to a Jul09 40.00 call in order to avoid assignment. I paid a net debit on the roll of $352.00, however, I established a new CC position in TGT, selling an ITM May09 37.50 call (see separate trade details), which brought in $370.00, so between the two position I received a net credit of $18.

I did this as an alternative to averaging down and selling 2 Jul09 40.00 calls. In that case I would have had a net credit of $37 but then I would have tied up $3,978 (the price I paid for the new TGT position) until July. By selling an ITM May09 37.50 call, which is currently two strikes ITM, the probability is higher that it will get called in May and free up the $3,978. If not called in May, then I can sell another call and can either combine these into one position or manage them as two separate positions.

Current Position Summary:

Stock Investment: $5,937.00
Income Generated: $1,467.93
Percent Income Generated: 24.71%
Annualized Income Generated: 17.82%
Net Profit If Called: -$1,220.07
Percent Return If Called: -20.55%
Annualized Return If Called: -14.82%
Days Held to Expiration: 506 days

Trade History:

28-Nov-07 - Initial Stock Position - BTO 100 TGT @ 59.37 -
28-Nov-07 - Initial Call Option - STO 1 Dec07 55.00 Call @ 5.66 - Expired
07-Jan-08 - Continued Trade - STO 1 Feb07 55.00 Call @ 0.84 - Expired
21-Feb-08 - Continued Trade - STO 1 Mar08 55.00 Call @ 1.44 - Expired
10-Mar-08 - Dividend Received - DIV 100 Dividend @ 0.14 -
25-Mar-08 - Continued Trade - STO 1 Apr08 55.00 Call @ 1.31 - Expired
23-Apr-08 - Interim Trade - STO 1 May08 55.00 Call @ 0.62 - Closed
16-May-08 - Buy Back & Roll Out/Up - BTC 1 May08 55.00 Call @ -0.11 -
19-May-08 - Continued Trade - STO 1 Jun08 57.50 Call @ 1.21 - Expired
10-Jun-08 - Dividend Received - DIV 100 Dividend @ 0.14 -
07-Jul-08 - Continued Trade - STO 1 Jul08 50.00 Call @ 0.58 - Expired
22-Jul-08 - Continued Trade - STO 1 Sep08 50.00 Call @ 1.25 - Closed
10-Sep-08 - Dividend Received - DIV 100 Dividend @ 0.16 -
12-Sep-08 - Buy Back & Roll Out/Up - BTC 1 Sep08 50.00 Call @ -6.80 -
12-Sep-08 - Continued Trade - STO 1 Oct08 57.50 Call @ 2.62 - Expired
20-Oct-08 - Interim Trade - STO 1 Nov08 45.00 Call @ 1.18 - Expired
24-Nov-08 - Interim Trade - STO 1 Dec08 35.00 Call @ 1.39 - Expired
10-Dec-08 - Dividend Received - DIV 100 Dividend @ 0.16 -
22-Dec-08 - Interim Trade - STO 1 Feb09 40.00 Call @ 1.41 - Expired
24-Feb-09 - Interim Trade - STO 1 Mar09 30.00 Call @ 0.76 - Closed
10-Mar-09 - Dividend Received - DIV 100 Dividend @ 0.16 -
20-Mar-09 - Buy Back & Roll Out/Up - BTC 1 Mar09 30.00 Call @ -0.39 -
20-Mar-09 - Interim Trade - STO 1 Apr09 32.50 Call @ 0.93 - Closed
09-Apr-09 - Buy Back & Roll Out/Up - BTC 1 Apr09 32.50 Call @ -7.41 -
09-Apr-09 - Interim Trade - STO 1 Jul09 40.00 Call @ 3.89 -