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Saturday, March 21, 2009

March 2009 Expiration Transactions

The Covered Calls Advisor Portfolio (CCAP) contained a total of 12 positions with March 2009 expirations, with the following results:
- 5 positions (MO,BAC,EWY,IWN, and USO) closed in-the-money.
The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results were:

Altria Group Inc(MO): -8.2%
Bank of America Corp(BAC): +55.3%
iShares MSCI South Korea ETF(EWY): +2.4%
iShares Russell 2000 Value ETF(IWN): -48.9%
United States Oil Fund ETF(USO) +13.3%

- 7 positions in the CCAP (CHL,FLR,GE,HPQ,JCOM,POT, and SOHU) ended out-of-the-money. Decisions will be made to either sell the equities, or to keep them and sell calls to establish Apr09 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 Altria, Bank of America, South Korea ETF, Russell 2000 Value ETF, and the U.S. Oil Fund ETF exercised positions are as follows:

1. Altria Group Inc (MO) -- Closed
The Transactions History was as follows:
08/19/08 Initial Stock Purchase Transaction -- Bought 500 MO @ $20.91
08/19/08 Initial Calls Sold Transaction -- Sold 5 MO Sep08 $21.00 Calls @ $.51
09/11/08 Ex-Dividend of $145.00 ($.29 * 500 shares)
09/20/08 Sep08 Options Expired
09/25/08 Covered Calls Continuation Transaction -- STO 5 Oct08 $21.00 Calls @ $.43
10/18/08 Oct08 Options Expired
10/20/08 Covered Calls Continuation Transaction -- STO 5 Nov08 $21.00 Calls @ $.67
11/22/08 Nov08 Options Expired
11/24/08 Covered Calls Continuation Transaction -- Sold 5 MO Dec08 $16 Calls at $.63
12/19/08 Dec08 Options Expired
12/22/08 Ex-Dividend of $160.00 ($.32 * 500 shares)
12/22/08 Covered Calls Continuation Transaction -- Sold 5 MO Jan09 $17 Calls at $.32
01/17/09 Jan09 Options Expired
01/20/09 Covered Calls Continuation Transaction -- Sold 5 MO Feb09 $18 Calls at $.40
02/21/09 Feb09 Options Expired
03/05/09 03/05/09 Covered Calls Continuation Transaction -- STO 5 Mar09 $16.00 Calls @ $.21
03/12/09 Ex-Dividend of $160.00 ($.32 * 500 shares)
03/21/09 Mar09 Options Exercised (500 shares of MO called away)
Note: Closing price of MO was $16.78 on expiration Friday.

The overall performance results(including commissions) for the MO transactions were as follows:
Stock Purchase Cost: $10,463.95
($20.91*500+$8.95 commission)

Net Profit:
(a) Options Income: +$1,496.10 (500*($.51+$.43+$.67+$.63+$.32+$.40+$.21) - 7*$12.70 commissions)
(b) Dividend Income: +$465.00 ($145.00+$160.00+$160.00)
(c) Capital Appreciation: -$2,463.95
= ($16.00-$20.91)*500 - $8.95 commissions

Total Net Profit(Stock exercised at $16.00): -$502.85
= (+$1,496.10 +$465.00 -$2,463.95)

Absolute Return: -4.8%
=-$502.85/$10,463.95
Annualized Return: -8.2%
(-$502.85/$10,463.95)*(365/214 days)

2. Bank of America Corp (BAC) -- Closed
The Transactions History was as follows:
01/15/09 Bought 500 BAC @ $7.929
01/15/09 Sold 5 BAC Feb09 $7.50 Calls @ $2.08
02/21/09 Feb09 Options Expired
02/26/09 Sell-to-Open (STO) 5 BAC Mar09 $6s @ $.70
Note: The price of BAC stock was $5.68 when the calls were sold.
03/21/09 Mar09 Options Exercised (500 shares of BAC called away)
Note: Closing price of BAC was $6.19 on expiration Friday.

The overall performance results(including commissions) for the BAC transactions were as follows:
Stock Purchase Cost: $3,973.45
($7.929*500+$8.95 commission)

Net Profit:
(a) Options Income: +$1,364.60 (500*($2.08+$.70) - 2*$12.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$973.45
= ($6.00-$7.929)*500 - $8.95 commissions

Total Net Profit (Stock exercised at $6.00): +$391.15
= (+$1,364.60 +$0.00 -$973.45)

Absolute Return: +9.8%
=+$391.15/$3,973.45
Annualized Return: +55.3%
=(+$391.15/$3,973.45)*(365/65 days)


3. iShares MSCI South Korea ETF (EWY) -- Closed
The Transactions History was as follows:
12/22/08 Initial Stock Purchase Transaction -- Bought 600 EWY @ $28.50
12/22/08 Inital Calls Sold Transaction -- Sold 6 EWY Jan09 $30.00 Calls @ $1.10
01/17/09 Jan09 Options Expired
01/22/09 Continuation Transaction -- Sell-to-Open (STO) 6 EWY Feb09 $28s @ $1.00
Note: The price of EWY was $25.45 today when the Feb09 options were sold.
02/21/09 Feb09 Options Expired
03/16/09 Sell-to-Open (STO) 6 EWY Mar09 $26s @ $.65
Note: The price of EWY was $25.88 today when the calls were sold.
03/21/09 Mar09 Options Exercised (600 shares of EWY called away)
Note: Closing price of EWY was $26.77 on expiration Friday.

The overall performance results(including commissions) for the EWY transactions were as follows:
Stock Purchase Cost: $17,108.95
($28.50*600+$8.95 commission)

Net Profit:
(a) Options Income: +$1,609.65 (600*($1.10+$1.00+$.65) - 3*$13.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$1,508.95
= ($26.00-$28.50)*600 - $8.95 commissions

Total Net Profit(Stock price exercised at $26.00): +$100.70
= (+$1,609.65 +$0.00 -$1,508.95)

Absolute Return: +0.6%
+$100.70/$17,108.95
Annualized Return: +2.4%
(+$100.70/$17,108.95)*(365/89 days)


4. iShares MSCI Russell 2000 Value ETF (IWN) -- Closed
The transactions history was as follows:
01/21/09 Initial Stock Purchase Transaction -- Bought 300 IWN @ $42.56
01/21/09 Initial Calls Sold Transaction -- Sold 3 IWN Feb09 $45.00 Calls @ $1.60
02/21/09 Feb09 Options Expired
03/12/09 Sell-to-Open (STO) 3 IWN Mar09 $37s @ $.70
Note: The price of IWN was $36.20 today when the calls were sold.
03/21/09 Mar09 Options Exercised (300 shares of IWN called away)
Note: Closing price of IWN was $37.53 on expiration Friday.

The overall performance results(including commissions) for the IWN transactions are as follows:
Stock Purchase Cost: $12,776.95
($42.56*300+$8.95 commission)

Net Profit:
(a) Options Income: +$667.60 (300*($1.60+$.70) - 2*$11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$1,676.95
= ($37.00-$42.56)*300 - $8.95 commissions

Total Net Profit(Stock price exercised at $37.00): -$1,009.35
= (+$667.60 +$0.00 -$1,676.95)

Absolute Return: -7.9%
-$1,009.35/$12,776.95
Annualized Return: -48.9%
(-$1,009.35/$12,776.95)*(365/59 days)

5. United States Oil Fund ETF (USO) -- Closed
The transactions history was as follows:
12/19/08 Initial Stock Purchase Transaction -- Bought 200 USO @ $32.33
12/19/08 Initial Calls Sold Transaction -- Sold 2 USO Jan09 $34.00 Calls @ $2.40
01/17/09 Jan09 Options Expired
01/20/09 Covered Calls Continuation Transaction -- STO 2 Feb09 $32.00 Calls @ $1.90
02/21/09 Feb09 Options Expired
02/25/09 Sell-to-Open (STO) 2 USO Mar09 $28s @ $.95
Note: the price of USO was $25.97 today when the call options were sold.
03/21/09 Mar09 Options Exercised (200 shares of USO called away)
Note: Closing price of USO was $30.76 on expiration Friday.

The overall performance results(including commissions) for the USO transactions are as follows:
Stock Purchase Cost: $6,474.95
($32.33*200+$8.95 commission)

Net Profit:
(a) Options Income: +$1,018.65 (200*($2.40+$1.90+$.95) - 3*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$874.95
= ($28.00-$32.33)*200 - $8.95 commissions

Total Net Profit(Stock price exercised at $28.00): +$143.70
= (+$1,018.65 +$0.00 -$874.95)

Absolute Return: +2.2%
=+$143.70/$6,474.95
Annualized Return: +13.3%
=(+$143.70/$6,474.95)*(365/61 days)

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