Today, with no surprise to me, my American Tower shares were assigned early as the holder of the calls wanted to capture the dividend and today the shares went ex-dividend. Shares of AMT closed on Friday at $239.15 which represents an 18.2% increase in the 34 days since I opened the trade on March 09. This trade produced a 27% annualized return but it would have produced a higher return had I sold OTM calls instead of ITM ones. When I opened this trade, my Market Meter was Neutral so I was cautious with my strike prices and, as it turns out, I may have been too cautious with this trade.
I bought back the Apr-16 $22.00 Barrick Gold calls that I had sold on March 02 today. I sold them for $0.48 and was able to buy them back for $0.05. As Barrick Gold passed one of my screeners today and it has a supposed earnings report date of May 05, I decided to sell Apr-30 $21.50 calls for $0.32. The table below includes all the info for both sets of calls that I sold.
Shares of Comcast haven’t performed well since I opened a covered call trade on March 30 so I bought back the APR-16 $55.00 calls today for $0.09 and sold the shares for $53.37. I lost 1% or 27% annualized on this trade.
Recall what I said about being too cautious with the strike price I selected for the AMT trade? Had I not been so cautious with this trade and selected a higher strike, I would have lost more than I did. I have no control over the outcome of a trade but I do have control over the process. In my opinion, as long as I follow my processes for initiating and managing trades then the outcome over the long run will be fine.