ABT - Closed

The ABT Jul08 55.00 Call was exercised on 7/10/08, the day before Ex-Dividend date, and the stock was called away for a profit. When a call option is ITM before Ex-Dividend date, and the time value left is less than the dividend, the call owner will usually exercise the call, to take ownership of the stock, in order to collect the dividend. This is what happened in this case. The following is the trade history and returns, including IB commissions.

Covered Call Results

Stock Investment: $5,484.00
Income Generated: $303.00
Net Profit: $319.00
Percent Return: 5.82%
Annualized Return: 19.84%
Duration of Trade: 107 days

Buy & Hold Comparison

Opening Price: $54.84
Closing Price: $56.42
P/L per Share: $1.58
Shares: 100
Dividends: $36.00
Net Profit: $194.00
Percent Return: 3.54%
Annualized Return: 12.07%
Duration of Trade: 107 days

Trade History:

25-Mar-08 - Initial Stock Position - BTO 100 ABT @ 54.84 -
25-Mar-08 - Initial Call Option - STO 1 Apr08 55.00 Call @ 1.41 - Expired
15-May-08 - Dividend Received - DIV 100 Dividend @ 0.36 -
23-Apr-08 - Continued Trade - STO 1 Jun08 55.00 Call @ 0.44 - Expired
07-Jul-08 - Continued Trade - STO 1 Jul08 55.00 Call @ 0.82 -
10-Jul-08 - Option Exercised - EX 1 Jul08 55.00 Call @ 55.00 - Exercised