Establish iShares MSCI China ETF Covered Calls

An additional covered calls position was established today in iShares MSCI China ETF (FXI) as follows:

Established iShares MSCI China ETF (FXI) Covered Calls for Dec09:
11/27/09 Bought 400 FXI @ $42.54
11/27/09 Sold 4 FXI Dec09 $44.00 Calls @ $1.13

China continues to rank #1 in this advisor's '2009 Country Value Rankings'.
Some of the key value-oriented metrics for China are as follows:
- Real GDP growth of approximately 8.5% in 2009 and 9.0%+ in 2010. This compares with a projection of slightly negative growth this year in most of the world's major developed countries and perhaps 2.0% to 4.0% in 2010.
- Estimated current-year inflation of 0% to 1% in China.
- Price/Book ratio of 3.03 is a below-average valuation relative to many other countries (for example, the U.S. S&P 500 is currently at 3.37).

The FXI ETF was selected as the primary investment vehicle for achieving wide exposure to China's stock market performance. It consists of market-cap-weighted positions in the 25 largest companies in China, and although it is most heavily weighted in the financial, energy, and telecommunications sectors, it still provides a relatively good way to diversify across the Chinese economy. Since China remains as the Covered Calls Advisor's top investment idea, a major commitment of 17% of the total CCAP is now allocated to FXI covered calls. Moreover, as a direct reflection of this Advisor's current bullishness regarding China, a bullish covered calls position(3.4% out-of-the-money) was established. Normally, the Covered Calls Advisor establishes buy/write positions by buying the underlying equity and simultaneously selling the call options. However, because of the news regarding the possible delay in Dubai's debt payments and the associated substantial sell-off at the market's open today, it was decided to leg-in to this covered calls position by buying the 400 shares of FXI at $42.54 soon after the market opened. Ninety minutes later, when FXI had risen to $43.41 the Dec09 $44.00 options were sold at $1.13.

Some possible overall performance results(including commissions) for this FXI investment would be as follows:
Stock Purchase Cost: $17,024.95
= ($42.54*400+$8.95 commission)

Net Profit:
(a) Options Income: +$440.05
= (400*$1.13 - $11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation(If stock price unchanged at $42.54): -$8.95
= ($42.54-$42.54)*400 - $8.95 commissions
(c) Capital Appreciation (If stock exercised at $44.00): +$575.05
= ($44.00-$42.54)*400 - $8.95 commissions

Total Net Profit(If stock price unchanged at $42.54): +$431.10
= (+$440.05 +$0.00 -$8.95)
Total Net Profit(If stock exercised at $44.00): +$1,015.10
= (+$440.05 +$0.00 +$575.05)

Absolute Return if Stock Price Unchanged at $42.54: +2.5%
= +$431.10/$17,024.95
Annualized Return If Unchanged (ARIU): +42.0%
= (+$431.10/$17,024.95)*(365/22 days)

Absolute Return if Stock Exercised at $44.00: +6.0%
= +$1,015.10/$17,024.95
Annualized Return If Exercised (ARIE): +98.9%
= (+$1,015.10/$17,024.95)*(365/22 days)

The downside breakeven price for this out-of-the-money position is $41.41 ($42.54-$1.13), and as such provides a downside profit protection of up to 2.5% below the purchase price.

Establish Dresser-Rand Group Inc. Covered Calls

A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) with the purchase of Dresser-Rand Group Inc. (DRC) covered calls as follows:

Established Dresser-Rand Group Inc. (DRC) Covered Calls for Dec09:
11/25/09 Bought 300 DRC @ $29.30
11/25/09 Sold 3 DRC Dec09 $30.00 Calls @ $.60

Dresser-Rand Group Inc. manufactures steam and reciprocating compression turbines for the oil, gas, petrochemical and related industries. It also sells replacement and upgrade parts, as well as maintenance, installation, upgrade, overhaul, monitoring and repair services for both its own equipment and the equipment of other manufacturers. The company is the leading supplier of rotating equipment in the U.S. and is one of the top three suppliers worldwide, with manufacturing facilities in the U.S., France, Germany, Norway, India and Brazil.

The 'Buy Alerts' spreadsheet below shows that DRC has a 'Total Points' rating of 20.22 which exceeds the Covered Calls Advisor's desired threshold of 20.0 points.
























Note: For expanded view, left click on the spreadsheet above.


Some possible overall performance results(including commissions) for the DRC transactions would be as follows:
Stock Purchase Cost: $8,798.95
= ($29.30*300+$8.95 commission)

Net Profit:
(a) Options Income: +$168.80
= (300*$.60 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock price unchanged at $29.30):
-$8.95 = ($29.30-$29.30)*300 - $8.95 commissions
(c) Capital Appreciation (If exercised at $30.00): +$201.05
= ($30.00-$29.30)*300 - $8.95 commissions

Total Net Profit(If stock price unchanged at $29.30): +$159.85
= (+$168.80 +$0.00 -$8.95)
Total Net Profit(If stock price exercised at $30.00): +$369.85
= (+$168.80 +$0.00 +$201.05)

Absolute Return if Unchanged at $29.30: +1.8%
= +$159.85/$8,798.95
Annualized Return If Unchanged (ARIU) +27.6%
= (+$159.85/$8,798.95)*(365/24 days)

Absolute Return if Exercised at $30.00: +4.2%
= +$369.85/$8,798.95
Annualized Return If Exercised (ARIE) +63.9%
= (+$369.85/$8,798.95)*(365/24 days)

Establish Rock-Tenn Co. Covered Calls

A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) with the purchase of Rock-Tenn Co. (RKT) covered calls as follows:

Established Rock-Tenn Co. (RKT) Covered Calls for Dec09:
11/25/09 Bought 300 RKT @ $46.49
11/25/09 Sold 3 RKT Dec09 $50.00 Calls @ $.40

Rock-Tenn Company manufactures and sells packaging products, recycled paperboard, containerboard, bleached paperboard, and merchandising displays worldwide. The Consumer Packaging segment manufactures folding cartons for packaging applications; express mail envelopes for the overnight courier industry; coated recycled and bleached paperboard for manufacturers of folding cartons and other paperboard products; and market pulp. The Corrugated Packaging segment produces linerboard and corrugated medium, corrugated sheets and packaging, and preprinted linerboard for industrial and consumer products manufacturers and corrugated box manufacturers; converts corrugated sheets into corrugated products; and provides structural design and engineering services. The Merchandising Displays segment designs, manufactures, and pre-assembles temporary and permanent promotional point-of-purchase displays for consumer products companies; provides contract packing services, such as multi-product promotional packing and product manipulation; and produces lithographic laminated packaging. The Specialty Paperboard Products segment sells specialty recycled paperboard to manufacturers of solid fiber interior packaging, tubes and cores, and other paperboard products; produces gypsum paperboard liner; converts specialty paperboard into book cover and laminated paperboard products for use in furniture, automotive components, storage, and other industrial products; designs and manufactures fiber partitions, including solid fiber partitions for glass container manufacturers and producers of beer, food, wine, spirits, cosmetics, and pharmaceuticals, and die-cut paperboard components; and manufactures specialty agricultural packaging for certain fruit and vegetable markets and sheeted separation products. It also sells recycled paper to the manufacturers of paperboard, tissue, newsprint, roofing products, and insulation. The company was founded in 1936 and is headquartered in Norcross, Georgia.

Credit Suisse recently issued a very bullish analysis of containerboard stocks in which they highlighted the following catalysts: (1) containerboard pricing is poised to increase as the overall economy improves since the industry is already operating at 95% of capacity while current inventories are at 15-year lows; and (2) analysts' current average earnings estimates are low in comparison to likely results for the next several quarters.
More specifically for Rock-Tenn Co., it is in the midst of a dramatic improvement in free cash flow generation which it is using: (1) to pay shareholders (RKT has already announced a 50% increase in dividends to $.60 annually); and (2) to aggressively pay down the large debt from its 2008 acquisition of Southern Container. Despite its relatively high enterprise value resulting from its current high debt, its stock is now value-priced with a EBIT/EV (Earnings Before Interest and Taxes divided by Enterprise Value) of only 10.0. As such, this advisor believes that there is minimal downside risk for this stock -- so a moderately deep-out-of-the-money covered calls position was established in RKT.

Some possible overall performance results(including commissions) for the RKT transactions would be as follows:
Stock Purchase Cost: $13,955.95
= ($46.49*300+$8.95 commission)

Net Profit:
(a) Options Income: +$108.80
= (300*$.40 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock price unchanged at $46.49):
-$8.95 = ($46.49-$46.49)*300 - $8.95 commissions
(c) Capital Appreciation (If exercised at $50.00): +$1,044.05
= ($50.00-$46.49)*300 - $8.95 commissions

Total Net Profit(If stock price unchanged at $46.49): +$99.85
= (+$108.80 +$0.00 -$8.95)
Total Net Profit(If stock price exercised at $50.00): +$1,152.85
= (+$108.80 +$0.00 +$1,044.05)

Absolute Return if Unchanged at $46.49: +0.7%
= +$99.85/$13,995.95
Annualized Return If Unchanged (ARIU) +10.8%
= (+$99.85/$13,995.95)*(365/24 days)

Absolute Return if Exercised at $50.00: +8.2%
= +$1,152.85/$13,995.95
Annualized Return If Exercised (ARIE) +125.3%
= (+$1,152.85/$13,995.95)*(365/24 days)

Establish Aeropostale Inc. Covered Calls

A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) with the purchase of Aeropostale Inc. (ARO) covered calls as follows:

Established Aeropostale Inc. (ARO) Covered Calls for Dec09:
11/25/09 Bought 300 ARO @ $30.56
11/25/09 Sold 3 ARO Dec09 $31.00 Calls @ $1.30

Aeropostale, Inc. operates as a mall-based specialty retailer offering proprietary branded, value-priced, active-oriented casual apparel and accessories. Their market is primarily teens between 14 and 17 years old. The company offers a collection of apparel, including graphic t-shirts, tops, bottoms, sweaters, jeans, and outerwear; and various accessories including sunglasses, belts, socks, and hats under AEROPOSTALE, AERO, 87, and other related trademarks. It has a very strong competitor in Gap Inc. and to a lesser extent the higher-end teen mall retailers of American Eagle Outfitters and Abercrombie & Fitch. Nevertheless, Standard & Poor's calls Aeropostale "the best performing teen apparel retailer in the mall." Aeropostale operates a total of over 900 stores located almost exclusively in the U.S.

Aeropostale provides both good growth and value characteristics; this year it is continuing its perennial store-for-store sales growth and this has afforded management the opportunity to be selectively less aggressive with promotional markdowns. As a result, merchandise gross margins are likely to increase this year by more than 3.0 percentage points. This, in combination with management's continuing excellent expense controls are resulting in outstanding profitability (measured by return on invested capital) results. Yet at its current price, it is also a compelling value investment since its P/E ratio is below 10.0 based on its expected current year earnings of $3.20 per share. Third quarter earnings will be announced on Dec 2nd, but these results are well known since the company has already announced its sales results and has a tight window of $.90-$.91 for quarterly earnings. The more important announcement that day will be ARO's November sales results; this advisor believes this could be a positive catalyst for the stock price since this year will be compared with the relatively depressed sales levels during last year's credit crisis.

The 'Buy Alerts' spreadsheet below shows that ARO has a 'Total Points' rating of 21.49 which exceeds the Covered Calls Advisor's desired threshold of 20.0 points.





















Note: For expanded view, left click on the spreadsheet above.


Some possible overall performance results(including commissions) for the ARO transactions would be as follows:
Stock Purchase Cost: $9,176.95
= ($30.56*300+$8.95 commission)

Net Profit:
(a) Options Income: +$378.80
= (300*$1.30 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock price unchanged at $30.56):
-$8.95 = ($30.56-$30.56)*300 - $8.95 commissions
(c) Capital Appreciation (If exercised at $31.00): +$123.05
= ($31.00-$30.56)*300 - $8.95 commissions

Total Net Profit(If stock price unchanged at $30.56): +$369.85
= (+$378.80 +$0.00 -$8.95)
Total Net Profit(If stock price exercised at $31.00): +$501.85
= (+$378.80 +$0.00 +$123.05)

Absolute Return if Unchanged at $30.56: +4.1%
= +$369.85/$9,176.95
Annualized Return If Unchanged (ARIU) +62.8%
= (+$132.85/$9,176.95)*(365/24 days)

Absolute Return if Exercised at $46.00: +5.5%
= +$501.85/$9,176.95
Annualized Return If Exercised (ARIE) +83.2%
= (+$144.85/$9,176.95)*(365/24 days)

Continuation Transactions to Re-Establish Covered Calls For Seven Holdings

Last Friday was expiration Friday for November 2009. In a Covered Calls Advisor's blog recent post, it was noted that of the seventeen covered calls positions for November 2009: (1) Four were in-the-money at expiration and were therefore exercised and the stocks were called away; and (2) Thirteen positions ended out-of-the-money. Yesterday it was decided to retain seven equities in the CCAP and to establish Dec09 covered calls positions. The seven equities are Accenture Ltd(ACN), Amgen Inc(AMGN), EMCOR Group(EME), ITT Corporation(ITT), Noble Corporation(NE), Sohu.com Inc(SOHU), and UnitedHealth Group Inc(UNH). The results so far for these seven holdings are as follows:

1. Accenture Ltd.(ACN) -- Continuation
The transactions history to date and the profit potential for the continuation covered calls position in ACN is as follows:
08/24/09 Bought 300 ACN @ $35.51
08/24/09 Sold 3 ACN Sep09 $35.00 Calls @ $1.15
Roll-Out Transaction:
09/18/09 Buy-to-Close (BTC) 10 ACN Sep09 $35.00s @ $1.10
09/18/09 Sell-to-Open (STO) 10 ACN Oct09 $35.00s @ $1.90
Note: The price of ACN was $36.08 today when this debit-spread was transacted.
10/13/09 Buy-to-Close (BTC) 3 ACN Oct09 $35.00s @ $4.20
10/13/09 Sell-to-Open (STO) 3 ACN Nov09 $40.00s @ $.80
Note: The price of ACN was $39.18 today when this debit-spread was transacted.
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 3 ACN Dec09 $40.00s @ $1.25

Stock Purchase Cost: $10,661.95
= ($35.51*300+$8.95 commission)

Net Profit:
(a) Options Income: -$104.80
= (300*($1.15-$1.10+$1.90-$4.20+$.80+$1.25) - 4*$11.20 commissions)
(b) Dividend Income: +$225.00 ($.75 * 300 shares)
(c) Capital Appreciation (If exercised at $40.00): +$1,338.05
= ($40.00-$35.51)*300 - $8.95 commissions

Total Net Profit(If stock price exercised at $40.00): +$1,458.25
= (-$104.80 +$225.00 +$1,338.05)

Absolute Return if Exercised at $40.00: +13.7%
= +$1,458.25/$10,661.95
Annualized Return If Exercised (ARIE): +42.7%
= (+$1,458.25/$10,661.95)*(365/117 days)

2. Amgen Inc.(AMGN) -- Continuation
The transactions history to date and the profit potential for the continuation covered calls position in AMGN is as follows:
10/22/09 Bought 200 AMGN @ $56.40
10/22/09 Sold 2 AMGN Nov09 $57.50 Calls @ $1.20
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 3 AMGN Dec09 $57.50s @ $.93
Note: Price of AMGN was $56.15 when the Dec09 options were sold.

Stock Purchase Cost: $11,288.95
= ($56.40*200+$8.95 commission)

Net Profit:
(a) Options Income: +$405.10
= (200*($1.20+$.93) - 2*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation(If stock price unchanged at $56.15): -$58.95
= ($56.15-$56.40)*200 - $8.95 commissions
(c) Capital Appreciation (If stock exercised at $57.50): +$211.05
= ($57.50-$56.40)*200 - $8.95 commissions

Total Net Profit(If stock price unchanged at $56.15): +$346.15
= (+$405.10 +$0.00 -$58.95)
Total Net Profit(If stock exercised at $57.50): +$616.15
= (+$405.10 +$0.00 +$211.05)

Absolute Return if Stock Price Unchanged at $56.15: +3.1%
= +$346.15/$11,288.95
Annualized Return If Unchanged (ARIU): +19.3%
= (+$346.15/$11,288.95)*(365/58 days)

Absolute Return if Stock Exercised at $57.50: +5.5%
= +$616.15/$11,288.95
Annualized Return If Exercised (ARIE): +34.3%
= (+$616.15/$11,288.95)*(365/58 days)

3. EMCOR Group(EME) -- Continuation
The transactions history to date and the profit potential for the continuation covered calls position in EME is as follows:
10/20/09 Bought 400 EME @ $24.35
10/20/09 Sold 4 EME Nov09 $25.00 Calls @ $.85
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 4 EME Dec09 $25.00s @ $1.25
Note: Price of EME was $25.30 when the Dec09 options were sold.

Stock Purchase Cost: $9,748.95
= ($24.35*400+$8.95 commission)

Net Profit:
(a) Options Income: +$816.10
= (400*($.85+$1.25) - 2*$11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock exercised at $25.00): +$251.05
= ($25.00-$24.35)*400 - $8.95 commissions

Total Net Profit(If stock exercised at $25.00): +$1,067.15
= (+$816.10 +$0.00 +$251.05)

Absolute Return if Stock Exercised at $25.00: +10.9%
= +$1,067.10/$9,748.95
Annualized Return If Exercised (ARIE): +66.6%
= (+$1,067.10/$9,748.95)*(365/60 days)

4. ITT Corporation(ITT) -- Continuation
The transactions history to date and the profit potential for the continuation covered calls position in ITT is as follows:
10/23/09 Bought 300 ITT @ $55.28
10/23/09 Sold 3 ITT Nov09 $55.00 Calls @ $2.60
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 3 ITT Jan10 $55.00s @ $.85
Note: Price of ITT was $51.55 when the Jan10 options were sold.

Stock Purchase Cost: $16,592.95
($55.28*300+$8.95 commission)

Net Profit:
(a) Options Income: +$1,012.60 (300*($2.60+$.85) - 2*$11.20 commissions)
(b) Dividend Income: +$63.90 ($.213 * 300 shares)
c) Capital Appreciation(If stock price unchanged at $51.55): -$1,127.95
= ($51.55-$55.28)*300 - $8.95 commissions
(c) Capital Appreciation (If stock exercised at $55.00): -$92.95
= ($55.00-$55.28)*300 - $8.95 commissions

Total Net Profit(If stock price unchanged at $51.55): -$51.45
= (+$1,012.60 +$63.90 -$1,127.95)
Total Net Profit(If stock exercised at $55.00): +$983.55
= (+$1,012.60 +$63.90 -$92.95)

Absolute Return if Stock Price Unchanged at $51.55: -0.3%
= -$51.45/$16,592.95
Annualized Return If Unchanged (ARIU): -1.3%
= (-$51.45/$16,592.95)*(365/85 days)

Absolute Return if Stock Exercised at $55.00: +5.9%
= +$983.55/$16,592.95
Annualized Return If Exercised (ARIE): +25.5%
= (+$983.55/$16,592.95)*(365/85 days)

5. Noble Corporation(NE) -- Continuation
The transactions history to date and the profit potential for the continuation covered calls position in NE is as follows:
09/02/09 Bought 300 NE @ $33.98
09/02/09 Sold 3 NE Sep09 $34.00 Calls @ $1.30
Roll-Up-and-Out Transaction:
09/17/09 Buy-to-Close (BTC) 3 NE Sep09 $34.00s @ $5.22
09/17/09 Sell-to-Open (STO) 3 NE Oct09 $36.00s @ $3.87
Note: The price of NE was $39.19 today when this debit-spread was transacted and the remaining time value in the Sep09 option was only $.03 [$5.22-($39.19-$34.00)].
Roll-Up-and-Out Transaction:
10/16/09 Buy-to-Close (BTC) 3 NE Oct09 $36.00s @ $5.60
10/16/09 Sell-to-Open (STO) 3 NE Nov09 $42.00s @ $1.75
Note: The price of NE was $41.56 today when this transaction occurred.
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 3 NE Dec09 $42.00s @ $1.45
Note: Price of NE was $41.30 when the Dec09 options were sold.

The overall performance results(including commissions) for this NE covered calls position would be as follows:
Stock Purchase Cost: $10,202.95
($33.98*300+$8.95 commission)

Net Profit:
(a) Options Income: -$779.80
= (300*($1.30-$5.22+$3.87-$5.60+$1.75+$1.45) - 4*$11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock price unchanged at $41.30): +$2,187.05
= ($41.30-$33.98)*300 - $8.95 commissions
(c) Capital Appreciation (If exercised at $42.00): +$2,397.05
= ($42.00-$33.98)*300 - $8.95 commissions

Total Net Profit(If stock price unchanged at $41.30): +$1,407.25
= (-$779.80 +$0.00 +$2,187.05)
Total Net Profit(If stock price exercised at $42.00): +$1,617.25
= (-$779.80 +$0.00 +$2,397.05)

Absolute Return if Stock Price Unchanged at $41.30: +13.8%
= +$1,407.25/$10,202.95
Annualized Return If Unchanged (ARIU) +46.6%
= (+$1,061.45/$10,202.95)*(365/108 days)

Absolute Return if Exercised at $42.00: +15.9%
= +$1,617.25/$10,202.95
Annualized Return If Exercised (ARIE) +53.6%
= (+$1,617.25/$10,202.95)*(365/108 days)

6. Sohu.com Inc.(SOHU) -- Continuation
The transactions history to date and the profit potential for the continuation covered calls position in SOHU is as follows:
10/16/09 Bought 200 SOHU @ $64.05
10/16/09 Sold 2 SOHU Nov09 $65.00 Calls @ $3.50
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 2 SOHU Dec09 $60.00s @ $.75
Note: Price of SOHU was $55.10 when the Dec09 options were sold.

Some possible overall performance results(including commissions) for the SOHU transactions would be as follows:
Stock Purchase Cost: $12,818.95
= ($64.05*200+$8.95 commission)

Net Profit:
(a) Options Income: +$829.10
= (200*($3.50+$.75) - 2*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock price unchanged at $55.10):
-$1,798.95 = ($55.10-$64.05)*200 - $8.95 commissions
(c) Capital Appreciation (If stock exercised at $60.00): -$818.95
= ($60.00-$64.05)*200 - $8.95 commissions

Total Net Profit(If stock price unchanged at $55.10): -$969.85
= (+$829.10 +$0.00 -$1,798.95)
Total Net Profit(If stock exercised at $60.00): +$10.15
= (+$829.10 +$0.00 -$818.95)

Absolute Return if Stock Price Unchanged at $55.10: -7.6%
= -$969.85/$12,818.95
Annualized Return If Unchanged (ARIU): -43.1%
= (-$969.85/$12,818.95)*(365/64 days)

Absolute Return if Stock Exercised at $60.00: +0.1%
= +$10.15/$12,818.95
Annualized Return If Exercised (ARIE): +0.5%
= (+$10.15/$12,818.95)*(365/64 days)

7. UnitedHealth Group Inc.(UNH) -- Continuation
The transactions history to date and the profit potential for the continuation covered calls position in UNH is as follows:
09/23/09 Bought 400 UNH @ $27.05
09/23/09 Sold 4 UNH Oct09 $26.00 Calls @ $1.95
10/17/09 Oct09 Options Expired
The closing price of UNH was $24.45 on expiration Friday.
10/19/09 Sell-to-Open (STO) 4 UNH Nov09 $26.00s @ $.80
The price of UNH was $24.77 today when this transaction was executed.
Roll-Up Transaction:
11/09/09 Buy-to-Close (BTC) 4 UNH Nov09 $26.00s @ $3.15
11/09/09 Sell-to-Open (STO) 4 UNH Nov09 $29.00s @ $.92
Note: Net Debit-Spread upon Roll-Up was $2.23 ($3.15 - $.92) and the price of UNH was $29.02 when this debit-spread was transacted.
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 4 UNH Dec09 $30.00s @ $.80
Note: Price of UNH was $29.34 when the Dec09 options were sold.

Some potential overall performance results(including commissions) for this UNH covered calls position would be as follows:
Stock Purchase Cost: $10,828.95
= ($27.05*400+$8.95 commission)

Net Profit:
(a) Options Income: +$480.20
= (400*($1.95+$.80-$3.15+$.92+$.80) - 4*$11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock price unchanged at $29.34):
+$907.05 = ($29.34-$27.05)*400 - $8.95 commissions
(c) Capital Appreciation (If stock exercised at $30.00): +$1,171.05
= ($30.00-$27.05)*400 - $8.95 commissions

Total Net Profit(If stock price unchanged at $29.34): +$1,387.25
= (+$480.20 +$0.00 +$907.05)
Total Net Profit(If stock exercised at $30.00): +$1,651.25
= (+$480.20 +$0.00 +$1,171.05)

Absolute Return if Stock Price Unchanged at $29.34: +12.8%
= +$1,387.25/$10,828.95
Annualized Return If Unchanged (ARIU): +53.7%
= (+$1,171.05/$10,828.95)*(365/87 days)

Absolute Return if Stock Exercised at $30.00: +15.2%
= +$1,651.25/$10,828.95
Annualized Return If Exercised (ARIE): +64.0%
= (+$1,651.25/$10,828.95)*(365/87 days)