BBBY - Closed

The BBBY Feb07 37.50 Call was exercised and the stock was called away for a profit. The following is the trade history and returns, including IB commissions.

Covered Call Results

Stock Investment: $11,162.00
Income Generated: $915.75
Net Profit: $1,003.75
Percent Return: 8.99%
Annualized Return: 7.26%
Duration of Trade: 452 days

Buy & Hold Comparison

Opening Price: $42.48
Closing Price: $42.59
P/L per Share: $0.11
Shares: 100
Dividends: $0.00
Net Profit: $11.00
Percent Return: 0.26%
Annualized Return: 0.21%
Duration of Trade: 452 days

Trade History:

21-Nov-05 - Initial Stock Position - BTO 100 BBBY @ 42.48 -
21-Nov-05 - Initial Call Option - STO 1 Dec05 42.50 Call @ 1.04 - Expired
23-Jan-06 - Interim Trade - STO 1 Mar06 40.00 Call @ 0.19 - Closed
21-Feb-06 - Buy Back - BTC 1 Mar06 40.00 Call @ -0.06 -
21-Feb-06 - Dollar Cost Averaging - BTO 100 BBBY @ 35.62 -
21-Feb-06 - Combined Cost Basis - $7,810.00 200 @ 39.05 -
21-Feb-06 - Continued Trade - STO 2 Apr06 40.00 Call @ 0.29 - Expired
24-Apr-06 - Continued Trade - STO 2 Aug06 40.00 Call @ 1.44 - Closed
30-Jun-06 - Buy Back - BTC 2 Aug06 40.00 Call @ -0.06 -
30-Jun-06 - Dollar Cost Averaging - BTO 100 BBBY @ 33.52 -
30-Jun-06 - Combined Cost Basis - $11,162.00 300 @ 37.21 -
30-Jun-06 - Continued Trade - STO 3 Feb07 37.50 Call @ 1.54 - Exercised
16-Feb-07 - Option Exercised - EX 3 Feb07 37.50 Call @ 37.50 -

BBBY was an old position established before I changed my criteria, so I allowed it to get called away. I'm slowly closing my old positions so I can establish new ones with my new criteria. As the chart for BBBY shows the stock hit a low of $30.92 in Jul06 or down about 27%. I lowered my cost basis by dollar cost averaging twice, once in Feb06 and again in Jun06. The stock then recovered back to slightly above the original price, so it end up basically flat during this holding period, yet I ended up with an 7.26% annualized return.