Sunday, June 22, 2008

June 2008 Expiration Transactions

The Covered Calls Advisor Portfolio (CCAP) contained a total of 6 positions with June 2008 expirations, with the following results:
- 1 position (NKE) closed in-the-money. The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results for this position was:

Nike Inc. +38.6%

- 5 positions in the CCAP (AUO,FTO,HON,HUM and TRV) ended out-of-the-money. Decisions will be made to either sell the stock, or to keep the stock and sell calls to establish Jul08 covered call positions. The related transactions will be made during the next few days and the actual transactions will be posted on this blog site on the same day they occur.

Details for the exercised position in Nike was as follows:

1. Nike Inc -- Closed

Transactions History:
05/23/08 Bought 500 Nike @ $64.92
05/23/08 Sold 5 NKE Jun08 $65 Calls @ $1.70
06/20/08 Jun08 Options Exercised (Note: Closing price on Friday 6/20/08 was $66.73)

The overall performance results(including commissions)for the NKE transactions through the Jun08 expiration were as follows:
Stock Purchase Cost: $32,468.95
($64.92*500+$8.95 commission)

Net Profit:
(a) Options Income: +$837.30 (500*$1.70 - $12.70 commissions)
(b) Dividend Income: $0.00
(c) Capital Appreciation: +$22.10
= ($65.00-$64.92)*500 - 2*$8.95 commissions

Total Net Profit: +$859.40
= ($837.30+$0.00+$22.10)

NKE Annualized Return on Investment: +38.6%
(+$859.40/$32,468.95)*(365/25 days)

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