Thursday, December 29, 2011

Cautiously Adding Microsoft $26

I am adding 5,000 shares of MSFT at $26/share

Immediately, i sold March $26 call and pocketed $1.03 premium.  I will also receive $0.2 dividend by 2/14/12.

This is how this investment look:

12/29/2011  MSFT 26 3/17/2012   1.23  53.4 26 50 4.73% $6,096.60   79  21% $130,000.00

If it got called away by 3/17/2012, my annualized return will be 21%.  If it fail to get called away, then, my cost for that 5000 shares will be $24.77

Upside:  I am very happy with 21% annualized return
Downside: I feel safe to hold MSFT at $24.77 cost.

No comments:

Post a Comment