After taking last week off to spend a family vacation at Lake Chelan (you should visit if you are in WA state), it is time to get back into the swing of things. As you may know, we posted an article a little over a week ago regarding our plays on the ProShares Ultra S&P500 (NYSE Symbol:SSO) selling covered call stock options.  We used the stock options to protect ourselves from a 9% drop in the stock (See Engaging the Ultra S&P500 Proshares (SSO) blog article from 07/08/2009).

Well, the market went on a tear when I was on vacation, so superstitiously-speaking I should take more vacations!  SSO currently sits at $27.23/share, and as you may recall from the previous article, I currently own 500 shares of SSO at a cost of $22.64, and my total cost is 500 * $22.64 = $11,322.  Using the $27.23/share, we have the following:

Cost Basis	$      22.64
Start Date	7/7/2009
End Date	9/18/2009
Item	Shares	Sale $/share	Total
SOJHB August $28 Call	200	$            27.23	$     5,446
SOJIV Sept. $22 Call	300	$            22.00	$     6,600
		Total Value	$   12,046
		Total Cost	$   11,320
		Profit $	$        726
		Profit %	6.41%
		CAGR %	36.5%

I think we can live with a 36% Compound Annual Growth Rate (CAGR) since the average CAGR of the overall market is around 10%.  (Yes, beating the market by 26%.) 

 

Keep checking back and we will update progress.