A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) as follows:
Established Nokia Corp(NOK) Covered Calls for May08
04/21/08 Bought 1000 NOK @ $29.07
04/21/08 Sold 10 NOK May08 $29 Calls @ $1.05
Annualized Return If Stock Price Unchanged (ARIU): +84.9%
Annualized Return If Exercised (ARIE): +84.9%
Downside Breakeven Protection: 6.3%
The annualized returns shown above includes a $.7802 ex-dividend on May 9th.
If the stock moves up and the options are exercised by the owner on 5/8/08 (in order to capture the dividend), then an annualized return of +47.3% will be achieved.
