Merry Christmas & Happy New Year

I'm still on vacation and will return next week. This is my last post for 2007. I'd like to wish everyone a very Merry Christmas and a Happy New Year.

URBN - Closed

The URBN Dec07 25.00 Call was exercised on Fri 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: $2,512.00
Income Generated: $301.00
Net Profit: $289.00
Percent Return: 11.50%
Annualized Return: 22.70%
Duration of Trade: 185 days

Buy & Hold Comparison

Opening Price: $25.12
Closing Price: $27.09
P/L per Share: $1.97
Shares: 100
Dividends: $0.00
Net Profit: $197.00
Percent Return: 7.84%
Annualized Return: 15.47%
Duration of Trade: 185 days

Trade History:

19-Jun-07 - Initial Stock Position - BTO 100 URBN @ 25.12 -
19-Jun-07 - Initial Call Option - STO 1 Dec07 25.00 Call @ 3.01 - Exercised
21-Dec-07 - Option Exercised - EX 1 Dec07 25.00 Call @ 25.00 -

NUE - Closed

The NUE Dec07 50.00 Call was exercised on Fri 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: $5,437.00
Income Generated: $539.00
Net Profit: $102.00
Percent Return: 1.88%
Annualized Return: 29.77%
Duration of Trade: 23 days

Buy & Hold Comparison

Opening Price: $54.37
Closing Price: $60.42
P/L per Share: $6.06
Shares: 100
Dividends: $0.00
Net Profit: $605.00
Percent Return: 11.13%
Annualized Return: 176.59%
Duration of Trade: 23 days

Trade History:

28-Nov-07 - Initial Stock Position - BTO 100 NUE @ 54.37 -
28-Nov-07 - Initial Call Option - STO 1 Dec07 50.00 Call @ 5.39 - Exercised
21-Dec-07 - Option Exercised - EX 1 Dec07 50.00 Call @ 50.00 -

NFLX - Closed

The NFLX Dec07 22.50 Call was exercised on Fri 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: $2,292.00
Income Generated: $444.00
Net Profit: $402.00
Percent Return: 17.54%
Annualized Return: 19.40%
Duration of Trade: 330 days

Buy & Hold Comparison

Opening Price: $22.92
Closing Price: $28.09
P/L per Share: $5.17
Shares: 100
Dividends: $0.00
Net Profit: $517.00
Percent Return: 22.56%
Annualized Return: 24.95%
Duration of Trade: 330 days

Trade History:

25-Jan-07 - Initial Stock Position - BTO 100 NFLX @ 22.92 -
25-Jan-07 - Initial Call Option - STO 1 Jun07 22.50 Call @ 2.49 - Expired
19-Jun-07 - Continued Trade - STO 1 Sep07 22.50 Call @ 1.09 - Expired
24-Sep-07 - Continued Trade - STO 1 Dec07 22.50 Call @ 0.86 - Exercised
21-Dec-07 - Option Exercised - EX 1 Dec07 22.50 Call @ 22.50 -

ESV - Closed

The ESV Dec07 55.00 Call was exercised on Fri 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: $5,708.00
Income Generated: $688.50
Net Profit: $480.50
Percent Return: 8.42%
Annualized Return: 36.15%
Duration of Trade: 85 days

Buy & Hold Comparison

Opening Price: $57.08
Closing Price: $57.74
P/L per Share: $0.66
Shares: 100
Dividends: $0.03
Net Profit: $69.00
Percent Return: 1.20%
Annualized Return: 5.15%
Duration of Trade: 85 days

Trade History:

27-Sep-07 - Initial Stock Position - BTO 100 ESV @ 57.08 -
27-Sep-07 - Initial Call Option - STO 1 Oct07 55.00 Call @ 3.09 - Expired
26-Oct-07 - Continued Trade - STO 1 Nov07 55.00 Call @ 2.34 - Expired
20-Nov-07 - Continued Trade - STO 1 Dec07 55.00 Call @ 1.43 - Exercised
21-Dec-07 - Dividend Received - DIV 100 Dividend @ 0.03 -
21-Dec-07 - Option Exercised - EX 1 Dec07 55.00 Call @ 55.00 -

WMT - Adjustment

The following adjustment was made today on WMT:

The Dec07 47.50 call had very little time value left, so I rolled it out and up, and a very slight credit, to avoid assignment.

11-Dec-07 - Buy Back & Roll Up - BTC 2 Dec07 47.50 Call @ -2.46 -
11-Dec-07 - Continued Trade - STO 2 Mar08 50.00 Call @ 2.46 -

Current Position Summary:

Stock Investment: $10,045.00
Income Generated: $340.90
Breakeven Price: $48.52
Percent Income Generated: 3.39%
Annualized Income Generated: 3.72%
Net Profit If Called: $295.90
Percent Return If Called: 2.95%
Annualized Return If Called: 3.23%
Days to Expiration: 333 days

Trade History:

23-Apr-07 - Initial Stock Position - BTO 100 WMT @ 49.26 - VICC
23-Apr-07 - Continued Trade - STO 1 May07 52.50 Call @ 0.10 - Expired
21-May-07 - Interim Trade - STO 1 Jun07 47.50 Call @ 0.59 - Closed
04-Jun-07 - Buy Back & Roll Out/Up - BTC 1 Jun07 47.50 Call @ -3.81 -
04-Jun-07 - Dollar Cost Averaging - BTO 100 WMT @ 51.19 -
04-Jun-07 - Combined Cost Basis - $10,045.00 200 @ 50.23 -
04-Jun-07 - Continued Trade - STO 2 Dec07 52.50 Call @ 2.54 - Closed
24-Oct-07 - Buy Back & Roll Down - BTC 2 Dec07 52.50 Call @ -0.11
24-Oct-07 - Interim Trade - STO 2 Dec07 47.50 Call @ 0.49 - Closed
11-Dec-07 - Buy Back & Roll Up - BTC 2 Dec07 47.50 Call @ -2.46 -
11-Dec-07 - Continued Trade - STO 2 Mar08 50.00 Call @ 2.46 -

Note that as a VICC position the primary objective is capital appreciation. The stock will be held long term until it reaches or surpasses it's fair value. Front month OTM call options are sold to bring in a small amount of income while waiting for the stock to appreciate. The calls are sold far enough OTM to avoid assignment and the need to make any mid-month adjustments.

On Vacation

I start vacation tomorrow so I'll be somewhat unavailable over the next
3 weeks. If I make any trades I'll try to post them when I get time. I'll also try to update my returns sometime after Dec options expiration.

Happy Holidays!