Thursday, December 10, 2009

MMM -- Adjustment

The MMM position was rolled up and out:

Price Date Description Total aXIRR aROI
$78.38 2009-11-17 Buyback 10 MMM Nov 2009 $75 @ $3.30 -$3,319.95 31.9% 25.7%
$80.23 2009-12-10 Sell 10 MMM Jan 2010 $80 @ $2.40 $2,380.05 32.5% 27.6%

I didn't roll it last month because the time value on the Dec $80's were too low. I had put in a limit order to sell it for $1.50, but it never triggered. So, theoretically, I missed on a month's worth of option income -- which was only about $0.90 per share at the time. I believe the primary reason is because the stock price was midway between two strike prices ($75 and $80), so neither one had a lot of time value to it.
 

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