Monday, August 20, 2007

PALM - Closed

The PALM position was closed today for a loss since the company no longer met my fundamental criteria. I'll explain the reasons in a separate article. Notice that the buy & hold loss would have been greater. The following is the trade history and returns, including IB commissions.

Covered Call Results

Stock Investment: $3,917.00
Income Generated: $613.50
Net Profit: -$133.00
Percent Return: -3.40%
Annualized Return: -2.57%
Duration of Trade: 483 days

Buy & Hold Comparison

Opening Price: $19.59
Closing Price: $15.85
P/L per Share: -$3.74
Shares: 100
Dividends: $0.00
Net Profit: -$374.00
Percent Return: -10.09%
Annualized Return: -14.43%
Duration of Trade: 483 days

Trade History:

24-Apr-06 - Initial Stock Position - BTO 100 PALM @ 23.16 -
24-Apr-06 - Initial Call Option - STO 1 Aug06 22.50 Call @ 2.95 - Closed
05-Jul-06 - Buy Back & Roll Down - BTC 1 Aug06 22.50 Call @ -0.11 -
05-Jul-06 - Dollar Cost Averaging - BTO 100 PALM @ 16.01 -
05-Jul-06 - Combined Cost Basis - $3,917.00 200 @ 19.59 -
05-Jul-06 - Continued Trade - STO 2 Feb07 20.00 Call @ 1.20 - Closed
19-Dec-06 - Buy Back & Roll Out - BTC 2 Feb07 20.00 Call @ -0.11 -
19-Dec-06 - Continued Trade - STO 2 Aug07 20.00 Call @ 0.55 - Expired
20-Aug-07 - Position Closed - STC 2 Closed @ 15.85 -