XXIA - Closed

The XXIA Feb07 10.00 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: $3.181.00
Income Generated: $434.75
Net Profit: $253.75
Percent Return: 7.98%
Annualized Return: 8.74%
Duration of Trade: 333 days

Buy & Hold Comparison

Opening Price: $13.92
Closing Price: $11.17
P/L per Share: -$2.75
Shares: 100
Dividends: $0.00
Net Profit: -$275.00
Percent Return: -19.76%
Annualized Return: -21.65%
Duration of Trade: 333 days

Trade History:

20-Mar-06 - Initial Stock Position - BTO 100 XXIA @ 13.92 -
20-Mar-06 - Initial Call Option - STO 1 May06 12.50 Call @ 1.84 - Expired
23-May-06 - Continued Trade - STO 1 Nov06 12.50 Call @ 0.79 - Closed
23-Oct-06 - Buy Back - BTC 1 Nov06 12.50 Call @ -0.06 -
23-Oct-06 - Dollar Cost Averaging - BTO 200 XXIA @ 8.95 -
23-Oct-06 - Combined Cost Basis - $3,181.00 300 @ 10.60 -
23-Oct-06 - Continued Trade - STO 3 Feb07 10.00 Call @ 0.59 - Exercised
16-Feb-07 - Option Exercised - EX 3 Feb07 10.00 Call @ 10.00 -

XXIA was another risky stock, also delinquent in its regulatory filings and in danger of being de-listed. This doesn't meet my new criteria, so I let it get called away and again luckily got out at a profit.

As the chart for XXIA shows the stock hit a low of $7.03 in Jul06 or down about 49% and again I lowered my cost basis by dollar cost averaging. The stock then recovered slightly but still ended up down about 20%, yet I ended up with an 8.74% annualized return.