Friday, August 15, 2008

Quick Update

Nothing to report today except that the shares of General Electric (GE) that I sold calls on are going to be called away this weekend at $29. So, all in all for that particular lot of shares I'm taking a small loss.

Initial Position (Buy-Write) on GE: $31.45
Dividend (reinvested): New shares that are now worth roughly 1% of the initial cost.
Covered Call (July): $0.67
Covered Call (Aug): $0.41

I suppose that works out to roughly $30.37 for the effective cost of the shares, which are going to be sold at $29, but I keep 1% of the shares (obtained from the dividend reinvestment) which further pads the original core long-term GE holding. All things accounted for, this is approximately 3.3% loss based on the original cost of shares at $31.45. Come to think of it, that's not too bad given that the S&P 500 fell about 9% over the same time period.

No comments: