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Silk Purse Update

|Includes:BlackBerry Ltd. (BBRY)

Some of you might be interested in how a covered call position works out IRL - This is one I initiated earlier in the month (the older ones have too many entries to be replicated here)

So here's one way you can take $38K and make it $80K in 6 months. (position initiated July 8)

Best case: ~$65,000 profit (as yield @ 6% average per week)

Worst case: ~$38,000 profit (as yield @ 2% average per week)

if the stock goes up $1 by January 1 (to $10.59) add $10K unrealized gain to the pile. If it goes to $0.00 I could still make ~$27,000.00 net in yield. ($65K total profit less the loss of my $38K investment) and get my money back.

This is not rocket science. I think if more of the SA people spent less time arguing about who's OPINION is more right and more time looking at their "options" - they'd make more "MONY" as someone once said.

JMO-YRMV

PS: If I can edit this after it is published I will update it every weekend.

UPDATED: 8/9/2013

 

 

             
BBRY calls spread   10,000 shares @ $9.59 $38,360.00 Buy in @ 40% margin
             
Call Premiums            
12-Jul $2,813.62 sell to open net of commissions and fees  
12-Jul -$378.37 buy to close net of commissions and fees  
20-Jul $4,013.60 sell to open net of commissions and fees  
20-Jul -$1,878.37 buy to close net of commissions and fees  
26-Jul $3,016.27 sell to open net of commissions and fees  
2-Aug $4,216.25 sell to open net of commissions and fees  
2-Aug -$4,011.32 buy to close net of commissions and fees  
9-Aug $4,413.60 sell to open net of commissions and fees  
9-Aug -$14,186.32 buy to close net of commissions and fees  
17-Aug $9,713.50 sell to open net of commissions and fees  
             
             
total realized yield 2013 $7,732.46          
             
net percent yield 20.1576%          
             
net/net gain 2013 $9,052.79          
             
cost of investment $38,360.00          
             
total yield $7,732.46          
             
current share value at today's price $39,680.00          
             
net capital gain per share $0.33          
             
current share price $9.92          
  .          
net gain per share $0.91          
             
net stock price gain or loss $1,320.00          
             
net/net total value $47,412.79          
             

Disclosure: I am long BBRY.

Stocks: BBRY