With the stock at $29.21 and RSI at a nosebleed 72.1, I bought back my 162 Sept. 28-strike covered calls and sold the long Jan. 13's for 2015 for a net credit of $1,438 apiece. Net proceeds after commissions amounted to $232,625. I also sold my 100 shares of stock for $29.21.
Full involvement with this company began on 11/17/04 when it was at $27.99. The cost basis was 100K and it remained that way until 6/2/08. Between that date and 3/16/09, I added almost 200K for an adjusted cost basis of $296,110. For the full period of 100.5 months from inception, my average daily cost was just over 200K and I ended up with accumulated profits of $500,085 after a total cashout of $796,195. It wasn't quite the million-dollar cashout that I was after but the stock got away from me on the upside the last few months and just refused to correct very much where I could effectively roll out.
I currently have almost 500K just sitting in idle cash and eventually I'll be putting it to use. I will also continue with my weekly updates on how my combined portfolios are doing but as of the end of the day today, I'll be moving my posting activities to the BIDU board as that is now my franchise stock. There is no need for Pfizer board riff-raff to follow me over there.
Found your post very interesting ... thanks for sharing. Numbers don't lie. Consider myself a long term value investor but only buy low .. sell high and enjoy dividends. Been at it for around 30 years. Have done well for myself but don't have a basic knowledge of the options market. Had someone try to explain a long time ago ... found it complicated and rather daunting so I steered clear. Any advise where someone like me may find a simplified version of how the options market works ? Motley Fools ? Unfamiliar territory. Just hesitant until I get my head wrapped around it. Congrats on your success. Bought 5000 PFE @ $17.25 and sold at $26.40 looking for market correction. Like INTC if I can get a price below $20. I am patient but have an itchy trigger finger. Thanks for any advise.