Today, 4/23/12, I BTC 6 NYX Jan13 $35 Covered Calls and STO 6 Dec12 $30 Covered Calls for a net deposit of $414.90 in an IRA account. My basis for these NYX shares is now $65.31, excluding dividends received. This transaction represents a simple return of about 1.05% and an annualized return of about 1.57% on my prior basis.
When I originally sold the Jan13 $35 Calls I thought I might need to roll them out and possible up even though $30 or $31 have been pretty good strike prices for me in the past few of years. Then there came the announcement that NYX would be “merged” with the German exchange. To my great delight, hat merger fell through earlier this year. As a result, I have been looking to do something with the Jan13 $35 Calls and finally decided to do something about them today.
S&P currently has a 12-month target of $31 and a hold rating for NYX. MarketEdge currently has a price opinion of $26.86 an Avoid recommendation. The 16 YHOO! Analysts have an average 12-month price target of $32.60 and a 2.6 recommendation where 1.0 is a Strong Buy and 5.0 is a Strong Sell.
Even though I am well underwater on NYX I rather like it. The stock has a .30 quarterly dividend, which equals about 4.50% at the current price. My return on basis is lower of course at about 1.82% as of the last payout in March. On the plus side my return on basis continues to increase as the basis falls as a result of option premiums.