DIA -- Catchup -- Position Closed

This is a catchup post, since I haven't been diligently posting transactions.

I closed the DIA position because I had been reading a lot about how the Dow Jones Industrial Average is a "sick" index. And my experience with it had not been good either. My overall history:

Price	Date	Description	Total	aXIRR	aROI
$89.91	2009-01-06	Buy 1000 DIA @ $89.91	-$89,905.60	--	--
$89.91	2009-01-06	Sell 10 DIA Jan 2009 $90 @ $1.96	$1,940.05	121.7%	78.8%
$86.74	2009-01-08	Buyback 10 DIA Jan 2009 $90 @ $0.69	-$709.95	-40.1%	-49.8%
$86.74	2009-01-08	Sell 10 DIA Jan 2009 $86 @ $2.41	$2,390.05	-11.4%	-11.6%
$85.14	2009-01-12	Buyback 10 DIA Jan 2009 $86 @ $1.14	-$1,159.95	-38.5%	-46.5%
$85.14	2009-01-12	Sell 10 DIA Feb 2009 $85 @ $4.05	$4,030.05	16.4%	14.3%
$80.40	2009-01-20	Buyback 10 DIA Feb 2009 $85 @ $1.84	-$1,859.95	-25.7%	-27.2%
$80.40	2009-01-20	Sell 10 DIA Feb 2009 $80 @ $4.10	$4,080.05	-11.2%	-10.8%
$78.00	2009-02-12	Buyback 10 DIA Feb 2009 $80 @ $1.01	-$1,029.95	-34.7%	-38.1%
$78.00	2009-02-12	Sell 10 DIA Feb 2009 $77 @ $2.52	$2,500.05	-15.8%	-15.6%
$75.76	2009-02-18	Buyback 10 DIA Feb 2009 $77 @ $0.40	-$419.95	-35.9%	-39.6%
$71.82	2009-02-24	Sell 10 DIA Mar 2009 $72 @ $2.95	$2,930.05	-29.4%	-30.0%
$66.85	2009-03-05	Buyback 10 DIA Mar 2009 $72 @ $0.50	-$519.95	-51.7%	-60.5%
$66.50	2009-03-05	Sell at end of period	$66,500.00	-60.9%	-78.6%

 

DIA -- Rolled Down and Out

The DIA position was rolled down and out:

Date	Description	Total	aXIRR	aROI
2009-01-06	Buy 1000 DIA @ $89.91	-$89,905.60
2009-01-06	Sell 10 DIA Jan 2009 $90 @ $1.96	$1,940.05	121.7%	78.8%
2009-01-08	Buyback 10 DIA Jan 2009 $90 @ $0.69	-$709.95	-40.1%	-49.8%
2009-01-08	Sell 10 DIA Jan 2009 $86 @ $2.41	$2,390.05	-11.4%	-11.6%
2009-01-12	Buyback 10 DIA Jan 2009 $86 @ $1.14	-$1,159.95	-38.5%	-46.5%
2009-01-12	Sell 10 DIA Feb 2009 $85 @ $4.05	$4,030.05	16.4%	14.3%
2009-02-20	Sell at end of period	$84,790.00	14.1%	12.4%

What the aXIRR and aROI percentages mean on each line (each assumes stock price will remain unchanged to the end of the option expiration period):

• On the sale of a call, they state the returns at the point the call was sold.
  
• On the repurchase of the call, they state the returns just prior to the repurchase of the call.
• On the "Sell at end of Period", they state the returns based on the current stock price.
  

So, the effect of the rolled option can be determined by seeing how the aXIRR and aROI rates change between the "Buyback" and subsequent "Sell" line.
 

DIA -- Rolled Down

The DIA position was rolled down:

Date	Description	Total	aXIRR	aROI
2009-01-06	Buy 1000 DIA @ $89.91	-$89,905.60
2009-01-06	Sell 10 DIA Jan 2009 $90 @ $1.96	$1,940.05
2009-01-08	Buyback 10 DIA Jan 2009 90.0 @ $0.69	-$709.95
2009-01-08	Sell 10 DIA Jan 2009 86.0 @ $2.41	$2,390.05
2009-01-16	Sell at end of period	$86,000.00	-11.4%	-11.6%
	Before Rolling		-40.1%	-49.8%

 

DIA -- New Position

A new position was established in DIA:

Date	Description	Total	aXIRR	aROI
2009-01-06	Buy 1000 DIA @ $89.91	-$89,905.60
2009-01-06	Sell 10 DIA Jan 2009 $90 @ $1.96	$1,940.05
2009-01-17	Sell at end of period	$89,810.00	99.1%	68.1%