BJS - Adjustment

The following adjustments were made today on BJ Services (BJS):

11-Jun-09 - Option Exercised - EX 1 Jun09 12.50 Call @ 12.50 - Partial Exercise
12-Jun-09 - Cash to Secure Put - CSP 100 BJS @ 12.50 -
12-Jun-09 - Initial Put Position - STO 1 Jul09 12.50 Put @ 0.20 -

Today is ex-dividend date for BJS with a $0.05 dividend payable on 7/15. Yesterday, the Jun 12.50 call had less than $0.05 time value and I was assigned on 100 shares of my 300 share position (i.e. 1 Jun 12.50 call option was exercised). BJS still has good fundamentals but it's trading at a 15% premium to fair value. Therefore, I didn't want to average down at this price, so I sold a Jul 12.50 cash secured put. I received $1,250 from the sale of the stock, and used that $1,250 to secure the put. Therefore, my initial cost basis hasn't changed. I also still have 200 shares with 2 Jun 12.50 calls that are ITM. If they get called I will sell 2 more Jul 12.50 cash secured puts.

This is my new strategy of using cash secured puts in lieu of averaging down and/or re-entering after assignment. From an accounting standpoint, the call and the put were a wash, $1,250 credit (call) and a $1,250 debit (put). Although the $1,250 is still in my account, it's tied up to secure the put, just as if I had purchased the stock at $12.50, so I include it in my cost basis.

Current Position Summary:

Stock Investment: $11,238.00
Income Generated: $3,420.85
Percent Income Generated: 30.44%
Annualized Income Generated: 8.95%
Net Profit If Called: -$4,067.15
Percent Return If Called: -36.19%
Annualized Return If Called: -10.64%
Days Held to Expiration: 1241 days

Trade History:

25-Jan-06 - Initial Stock Position - BTO 200 BJS @ 40.05 -
25-Jan-06 - Initial Call Option - STO 2 Feb06 40.00 Call @ 1.54 - Expired
21-Feb-06 - Continued Trade - STO 2 Apr06 40.00 Call @ 0.49 - Closed
20-Mar-06 - Buy Back - BTC 2 Apr06 40.00 Call @ -0.11 -
20-Mar-06 - Second Stock Position - BTO 100 BJS @ 32.29 -
20-Mar-06 - Combined Cost Basis - $11,238.00 300 @ 37.46 -
20-Mar-06 - Continued Trade - STO 3 Jul05 37.50 Call @ 0.94 - Expired
14-Jul-06 - Dividend Received - DIV 300 Dividend @ 0.05 -
24-Jul-06 - Interim Trade - STO 3 Oct06 35.00 Call @ 1.19 -
13-Oct-06 - Dividend Received - DIV 300 Dividend @ 0.05 -
23-Oct-06 - Interim Trade - STO 3 Jan07 35.00 Call @ 0.79 -
22-Dec-06 - Buy Back & Roll Out - BTC 3 Jan07 35.00 Call @ -0.11 - Closed
22-Dec-06 - Continued Trade - STO 3 Jul07 35.00 Call @ 1.66 - Closed
12-Jan-07 - Dividend Received - DIV 300 Dividend @ 0.05 -
13-Apr-07 - Dividend Received - DIV 300 Dividend @ 0.05 -
21-Jun-07 - Buy Back & Roll Out/Down - BTC 3 Jul07 35.00 Call @ -0.11 - Closed
21-Jun-07 - Interim Trade - STO 3 Oct07 32.50 Call @ 0.79 - Expired
13-Jul-07 - Dividend Received - DIV 300 Dividend @ 0.05 -
12-Oct-07 - Dividend Received - DIV 300 Dividend @ 0.05 -
30-Oct-07 - Interim Trade - STO 3 Dec07 27.50 Call @ 0.55 - Expired
11-Jan-08 - Dividend Received - DIV 300 Dividend @ 0.05 -
14-Jan-08 - Interim Trade - STO 3 Apr08 27.50 Call @ 0.64 - Closed
14-Apr-08 - Buy Back & Roll Out/Up - BTC 3 Apr08 27.50 Call @ -1.71 -
14-Apr-08 - Interim Trade - STO 3 Jul08 30.00 Call @ 1.84 - Expired
15-Apr-08 - Dividend Received - DIV 300 Dividend @ 0.05 -
15-Jul-08 - Dividend Received - DIV 300 Dividend @ 0.05 -
23-Jul-08 - Continued Trade - STO 2 Aug08 35.00 Call @ 0.42 - Expired
23-Jul-08 - Continued Trade - STO 1 Aug08 32.50 Call @ 1.14 - Expired
22-Aug-08 - Continued Trade - STO 2 Oct08 32.50 Call @ 0.31 - Expired
22-Aug-08 - Continued Trade - STO 1 Oct08 30.00 Call @ 0.78 - Expired
14-Oct-08 - Dividend Received - DIV 300 Dividend @ 0.05 -
20-Oct-08 - Interim Trade - STO 3 Nov08 17.50 Call @ 0.29 - Expired
24-Nov-08 - Interim Trade - STO 3 Jan09 15.00 Call @ 0.24 - Expired
13-Jan-09 - Dividend Received - DIV 300 Dividend @ 0.05 -
22-Jan-09 - Interim Trade - STO 3 Mar09 12.50 Call @ 0.59 - Expired
24-Mar-09 - Interim Trade - STO 3 May09 12.50 Call @ 0.46 - Closed
15-Apr-09 - Dividend Received - DIV 300 Dividend @ 0.05 -
04-May-09 - Buy Back and Roll Out - BTC 3 May09 12.50 Call @ -2.71 -
04-May-09 - Interim Trade - STO 3 Jun09 12.50 Call @ 2.94 -
11-Jun-09 - Option Exercised - EX 1 Jun09 12.50 Call @ 12.50 - Partial Exercise
12-Jun-09 - Cash to Secure Put - CSP 100 BJS @ 12.50 -
12-Jun-09 - Initial Put Position - STO 1 Jul09 12.50 Put @ 0.20 -