Covered Call Analyzer CONSERVATIVE "STOCKS-TO-CONSIDER"
for July, 2007
NOTE: We had temporarily suspended out get-out rule (at -15%) between July 25 and September 22, 2007 because of the volatility in the markets. We have reinstated the get-out rule effective September 22 (expiration weekend). Any open positions on any list or portfolio will be sold if their price drops 15% below the stock price at September 22.
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Company Name |
Stock Symbol |
Stock Price |
# of shares |
Total Cost* |
Option Symbol |
Aug Option Bid Price |
Income from sale* |
Strike Price |
Projected return if Called after one month* |
Actual $ return* |
Actual % Return* |
BEAZER HOMES USA IN |
$19.62 |
500 |
$9,830 |
BHZHE |
$0.30 |
$133 |
25 |
29% |
($5,080) | -52% |
|
Comments: |
Not called in August. Price at $11.09 on 8/18/2007. Will now sell Sep15 at $0.60. Note that we have lowered the strike price. Not called in September. Price at $10.06 on 9/22/2007. Will now sell Oct15 at $0.20. Exercised get-out price at $8.55 on September 25 after calling back calls at $0.05. |
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|
AMER HOME MORTGAGE I |
$12.80 |
700 |
$8,980 |
AHMHC |
$0.75 |
$505 |
15 |
23% |
($8,080) | -90% | |
|
Comments: |
This company went bankrupt as a result of the sub-prime mortgage blowup on August 10. This stock now trades with the symbol AHMMQ.PK . We will continue to hold this stock even though it has minimal value, to see if comes out of bankruptcy. Price at $0.40 at 8/18/2007. Price at $0.95 at 9/22/2007.Price at $0.50 at 10/20/2007. Sold all shares at $0.50 on November 6 to close out position. |
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NETFLIX INC. |
$19.63 |
500 |
$9,835 |
QNQHX |
$0.45 |
$208 |
22.5 |
16% |
+$713 | +7% | |
|
Comments: |
Not called in August. Price at $17.24 on 8/18/2007. Will now sell Sep20 at $0.20. Note that we have lowered the strike price. Not called in September. Price at $19.19 on 9/22/2007. Will now sell Oct20 at $0.55. Called in October at$20.00. |
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|
USEC INC. |
$19.52 |
500 |
$9,780 |
USUHX |
$0.30 |
$133 |
22.5 |
16% |
($5,010) | -51% | |
|
Comments: |
Not called in August. Price at $14.31 on 8/18/2007. Will now sell Sep17.5 at $0.35. Note that we have lowered the strike price. Not called in September. Price at $10.40 on 9/22/2007. Will now sell Oct12.5 at $0.20. Exercised get-out price at $8.84 on October 8 after calling back calls at $0.05. |
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|
NETEASE.COM INC. -A |
$17.87 |
500 |
$8,955 |
NQGHD |
$0.25 |
$108 |
20 |
13% |
($1,065) | -12% | |
|
Comments: |
Not called in August. Price at $14.67 on 8/18/2007. Will now sell Sep15 at $0.60. Note that we have lowered the strike price. Called in September at $15.00. |
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| GENERAL MARITIME COR |
$27.07 |
300 |
$8,141 |
GMRHF |
$0.25 |
$61 |
30 |
11% |
($670) | -8% | |
|
Comments: |
Not called in August. Price at $23.86 on 8/18/2007. Will now sell Sep25 at $0.70. Note that we have lowered the strike price. Not called in September. Price at $27.98 on 9/22/2007. Will now sell Oct30 at $0.25. Not called in October. Price at $26.06 on 10/20/2007. Will now sell Nov30 at $0.15. Stock price hit get out price of $23.78 during expiration week. Rather than buying back calls, we held the stock until after expiration and then sold all shares at $23.68 to close out position. |
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|
SFQ |
$15.91 |
600 |
$9,566 |
SFQHW |
$0.50 |
$184 |
17.5 |
11% |
($1,505) | -16% | |
|
Comments: |
Not called in August. Price at $15.18 on 8/18/2007. Will now sell Sep17.5 at $0.25. Not called in September. Price at $14.30 on 9/22/2007. Will now sell Oct17.5 at $0.40. Not called in October. Price at $14.08 on 10/20/2007. Will now sell Nov15 at $0.30. Note that we have lowered the strike price. Exercised get-out price at $12.16 on November 5 after calling back calls at $0.05. |
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|
MASCO CORPORATION |
$27.53 |
300 |
$8,279 |
MASHF |
$0.50 |
$136 |
30 |
10% |
($872) | -11% | |
|
Comments: |
Not called in August. Price at $26.30 on 8/18/2007. Will now sell Sep30 at $0.35. Not called in September. Price at $23.87 on 9/22/2007. Sold all shares at $23.87 to close out position. |
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|
K-SWISS INC. |
$24.51 |
300 |
$8,273 |
SWUHF |
$0.35 |
$91 |
30 |
10% |
($2,064) | -25% | |
|
Comments: |
Not called in August. Price at $24.64 on 8/18/2007. Will now sell Sep25 at $0.90. Note that we have lowered the strike price. Not called in September. Price at $22.67 on 9/22/2007. Will now sell Oct25 at $0.25. Not called in October. Price at $20.68 on 10/20/2007. Will now sell Nov25 at $0.15. Exercised get-out price at $19.27 on November 5 after calling back calls at $0.05. |
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|
CRYPTOLOGIC INC. |
$23.21 |
400 |
$9,304 |
UFWHE |
$0.35 |
$124 |
25 |
9% |
($852) | -9% | |
|
Comments: |
Not called in August. Price at $20.89 on 8/18/2007. Will now sell Sep22.5 at $0.60. Note that we have lowered the strike price. Not called in September. Price at $20.95 on 9/22/2007. Will now sell Oct22.5 at $0.40. Not called in October. Price at $21.68 on 10/20/2007. Will now sell Nov22.5 at $0.25. Exercised get-out price at $19.73 on November 1 after calling back calls at $0.05. |
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|
Income from sale of calls is +$4,494. |
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|
All positions Closed out in November. Cost of these ten (10) stocks is $90,943 Return from premiums and appreciation at ($24,510). Real return is -26.9% (($24,510)/$90,943) |
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The stocks listed above are for illustrative and educational purposes only and should not be construed as an endorsement, recommendation, or solicitation to buy or sell any particular security.