January 27th, 2010 - Update

Unfortunately I am finding it too difficult to keep up my blog with real-time posts from my mobile Droid. I will leave my blog up so anybody that wants to can see my trading plan and some past trades. From now on I will post my trades as close to real time as possible in the Yahoo Group JustCoveredCalls. Link Below:

http://finance.groups.yahoo.com/group/justcoveredcalls/

This is an excellent group for people of all levels of experience from beginners to experienced. A day doesn't go by that I don't learn something new from these folks who generously give their time and knowledge. It is a friendly atmosphere where we all help each other. I guarantee you that this free site has more knowledge than any training course you could pay for. Please come by and visit us.

New Trade - 1/6/10 - CLX - (Clorox)

Naked Put - CLX (Clorox) Feb 10 @ $60 Strike for $0.85 each. Net $85 per contract.

Clorox is one of my sure things. I originally purchased it at $56 and kept writing calls on it until it was finally taken from me last month at $60. I have been waiting for a pull back but it hasn't happened so I am going to just jump back in. Clorox is a solid company with a long long history of raising dividends. Nothing would make me happier that to get put this stock at a price of $59.15 ($60 - $0.85 premium). Not the juiciest return of my portfolio but a very safe investment.

Ticker: CLX
Expiratoin: 2/19/10
Invest Date 1/6/10

Current Stock Price $61.75
Strike Price $60.00
Premium $0.85
Annual Dividend $2.00

Days to Expiration 44
Return (Assumes CSP) 1.42%
Annualized Return 11.75%
Downside Protection 4.21%
Effective Dividend if Put 3.38%

New Trade - 1/5/10 SO (SOUTHERN CO)

Naked Put - SO (Southern Company) Feb 10 @ $32 Strike for $0.70 each.

Risk Management:

Ticker: SO
Expiratoin: 2/19/10
Invest Date 1/5/10

Current Stock Price $32.60
Strike Price $32.00
Premium $0.70
Annual Dividend $1.75

Days to Expiration 45
Return (Assumes CSP) 2.19%
Annualized Return 17.74%
Downside Protection 3.99%
Effective Dividend if Put 5.59%

New Trade - 1/5/10 O (Realty Income Corp)

Naked Put - O (Realty Income Corp) Feb 10 @ $25 Strike for $0.85 each.

Risk Management:

Ticker: O
Expiratoin: 2/19/10
Invest Date 1/5/10

Current Stock Price $26.40
Strike Price $25.00
Premium $0.85
Annual Dividend $1.72

Days to Expiration 45
Return (Assumes CSP) 3.40%
Annualized Return 27.58%
Downside Protection 8.52%
Effective Dividend if Put 7.11%

New Trade - LLY - 1/5/10

Naked Put - LLY (Eli Lilly) Feb 10 @ $34 Strike for $0.85 each.

Risk Management:

Investment Return / Protection For Naked Puts

Ticker: LLY
Expiratoin: 2/19/10
Invest Date 1/5/10

Current Stock Price $35.10
Strike Price $34.00
Premium $0.85
Annual Dividend $1.96

Days to Expiration 45
Return (Assumes CSP) 2.50%
Annualized Return 20.28%
Downside Protection 5.56%
Effective Dividend if Put 5.91%