Sunday, February 20, 2011

MDT - Closed




The Medtronic Inc (MDT) Feb11 36.00 Call was exercised and the position was closed. All prices include IB commissions.

This position resulted in a loss. I made a few mistakes with this position. First, I bought MDT above my target buy price. Then when the stock declined, I sold a call below my cost basis. I should have just left the position uncovered until I could sell a call at my original cost basis or higher. However, since I did sell a call below my cost basis, I should have rolled it out to a higher strike when the stock price began to rise. So these three mistakes resulted in a loss.

Position Summary





Cost Basis$4,400.00
Net Profit($346.78)
Percent Return-7.88%
Annualized Return-9.49%
Days Held to Expiration303 days


Trade History






















DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
4/21/2010MDTCSP Margin UsedCSP 100 MDT @ 44.00 ($4,400.00) 
4/21/2010MDTInitial Put OptionSTO 1 May10 44.00 Put @ 0.94Exercised $94.14
5/21/2010MDTCSP Margin ReturnedCSP 100 MDT @ -44.00 $4,400.00 
5/21/2010MDTStock AssignedEX 1 May10 44.00 Put @ -44.00 ($4,400.00) 
5/21/2010MDTContinued TradeSTO 1 Aug10 44.00 Call @ 1.38Closed $138.24
7/30/2010MDTDividend ReceivedDIV 100 Dividend @ 0.23  $22.50
8/2/2010MDTBuy Back and Roll Out/DownBTC 1 Aug10 44.00 Call @ -0.04  ($3.96)
8/2/2010MDTContinued TradeSTO 1 Nov10 42.00 Call @ 0.44Closed $44.04
8/23/2010MDTBuy BackBTC 1 Nov10 42.00 Call @ -0.13  ($12.76)
9/1/2010MDTInterim TradeSTO 1 Jan11 36.00 Call @ 0.86Closed $85.99
10/29/2010MDTDividend ReceivedDIV 100 Dividend @ 0.23  $22.50
1/3/2011MDTBuy Back and Roll Out/UpBTC 1 Jan11 36.00 Call @ -1.54  ($153.96)
1/3/2011MDTInterim TradeSTO 1 Feb11 36.00 Call @ 1.94Exercised $193.99
1/28/2011MDTDividend ReceivedDIV 100 Dividend @ 0.23  $22.50
2/18/2011MDTStock CalledEX 1 Feb11 36.00 Call @ 36.00  $3,600.00
2/18/2011MDT Net Cost/Profit-Loss ($4,400.00)($346.78)
DTE303 Percent Profit-Loss/Annualized -7.88%-9.49%