SNDK - Adjustment

The following adjustment was made today on SNDK:

27-Apr-07 - Interim Trade - STO 2 May07 45/00 Call @ 0.84 -

I could have made this adjustment on Monday and gotten about $1.10-$1.15 on the call option but I decided to until after SNDK announced earnings on Thursday. You never know how a stock is going to react to an earnings announcement so, IMHO, it's better to wait until after the announce before establishing or adjusting a covered call position.

Note that this position will be almost a year old by May expiration. In that time I generated about 23% in option premium. Also note that this is an Interim trade. This usually means the call option is below the cost basis, which would result in a loss if called. In this case though, the call option is above the cost basis and will result in a small gain. I really don't want to let this stock get called away and give back most of the option premium I generated, so I flagged this as an Interim trade and will roll it out and up to avoid assignment if the call option goes ITM.

Current Position Summary:

Stock Investment: $10,854.00
Income Generated: $2,543.00
Percent Income Generated: 23.43%
Net Profit If Called: $689.00
Percent Return If Called: 6.35%
Annualized Return If Called: 5.96%
Days to Expiration: 361 days

Trade History:

24-Apr-06 - Initial Stock Position - BTO 100 SNDK @ 59.56 -
24-Apr-06 - Initial Call Option - STO 1 Jul06 57.50 Call @ 7.09 - Closed
06-Jul-06 - Buy Back & Roll Out/Down - BTC 1 Jul06 57.50 Call @ -0.16 -
06-Jul-06 - Dollar Cost Averaging - BTO 100 SNDK @ 48.98 -
06-Jul-06 - Combined Cost Basis - $10,854.00 200 @ 54.27 -
06-Jul-06 - Continued Trade - STO 2 Oct06 55.00 Call @ 3.39 - Expired
23-Oct-06 - Continued Trade - STO 2 Jan07 55.00 Call @ 2.14 - Closed
19-Dec-06 - Buy Back & Roll Out/Down - BTC 2 Jan07 55.00 Call @ -0.16 -
19-Dec-06 - Continued Trade - STO 2 Feb07 50.00 Call @ 1.69 - Closed
06-Feb-07 - Buy Back & Roll Out/Down - BTC 2 Feb07 50.00 Call @ -0.06 -
06-Feb-07 - Interim Trade - STO 2 Apr07 45.00 Call @ 1.39 - Expired
27-Apr-07 - Interim Trade - STO 2 May07 45/00 Call @ 0.84 -