Selling Covered Calls on Grupo Simec

 

I will try to sell covered calls tomorrow on the shares of Grupo Simec that I own.  Following is an analysis of the sale.

 

STOCK SYMBOL	SIM
STOCK PURCHASE PRICE	$11.35
STRIKE PRICE	$12.50
DATE OF CALL EXPIRATION	04/18/08
PREMIUM RECEIVED	$0.45
THEORETICAL CALL PRICE	$0.32
DELTA	0.30
DAYS TO EXPIRATION	43
BREAKEVEN PRICE	$10.95
DOWNSIDE PROTECTION	3.96%
ANNUALIZED DSP	33.65%
RESULTS IF OPTION IS EXERCISED
RETURN	14.16%
ANNUALIZED (If-Called) RETURN	120.17%