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Saturday, April 18, 2009

April 2009 Expiration Transactions

The Covered Calls Advisor Portfolio (CCAP) contained a total of eleven positions with April 2009 expirations, with the following results:
- Ten positions (BHP,CHL,ESV,FLR,HD,FXI,JCOM,POT,TTEC, and INT) closed in-the-money.
The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results for these investments were:

BHP Billiton LTD ADR(BHP): +123.2%
China Mobile LTD ADR(CHL): +70.0%
ENSCO International Inc(ESV): +114.1%
Fluor Corporation(FLR): +54.6%
Home Depot Inc(HD): +69.3%
iShares MSCI China ETF(FXI): +29.3%
j2 Global Communications Inc(JCOM): +117.0%
Potash Corp of Saskatchewan Inc(POT): +126.9%
TeleTec Holdings Inc(TTEC): +153.4%
World Fuel Services Inc(INT): +138.0%

- One position in the CCAP (AMGN) ended out-of-the-money. A decision will be made to either sell AMGN, or to keep the stock and sell calls to establish a May09 covered calls position. 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.

- During the week prior to Apr09 expiration, there were six in-the-money covered calls positions (HPQ,UNH,ESRX,SOHU,GE,and BAC) in which the Covered Calls Advisor had decided to retain the existing stock for an additional month. For these six positions, roll-up-and-forward transactions were executed to continue covered calls positions and to extend them from Apr09 expirations to May09. The details of each of these roll-up-and-forward transactions were each posted earlier this week on this blog.


Detailed results for the ten positions that were assigned (called away) upon Apr09 expiration are as follows:

1. BHP Billiton LTD ADR (BHP) -- Closed
The Transactions History to date for the BHP covered calls is as follows:
02/25/09 Initial Stock Purchase Transaction -- Bought 100 BHP @ $36.75
02/25/09 Inital Calls Sold Transaction -- Sold 1 BHP Mar09 $37.50 Call @ $2.90
03/19/09 Buy-to-Close (BTC) 1 BHP Mar09 $37.50s @ $7.50
03/19/09 Sell-to-Open (STO) 1 BHP Apr09 $45s @ $3.10
Note: The price of BHP was $44.90 today when this transaction was executed.
04/18/09 Apr09 Options Exercised (100 shares of BHP called away)
Note: Closing price of BHP was $47.88 on expiration Friday.

The overall performance results(including commissions) for the BHP transactions through the Apr09 expiration are as follows:

Stock Purchase Cost: $3,683.95
($36.75*100+$8.95 commission)

Net Profit:
(a) Options Income: -$169.40 (100*($2.90-$7.50+$3.10) - 2*$9.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$816.05
= ($45.00-$36.75)*100 - $8.95 commissions

Total Net Profit: +$646.65
= (-$169.40 +$0.00 +$816.05)

Absolute Return: +17.6%
+$646.65/$3,683.95
Annualized Return: +123.2%
(+$646.65/$3,683.95)*(365/52 days)


2. China Mobile LTD ADR (CHL) -- Closed
The Transactions History to date for the CHL covered calls is as follows:
03/13/09 Initial Stock Purchase Transaction -- Bought 200 CHL @ $44.15
03/13/09 Inital Calls Sold Transaction -- Sold 2 CHL Mar09 $45.00 Calls @ $1.00
03/21/09 Mar09 Options Expired
03/23/09 Continuation Transaction -- Sell-to-Open (STO) 2 CHL Apr $45s @ $1.35
Note: The price of CHL was $43.16 today when the call options were sold.
04/18/09 Apr09 Options Exercised (200 shares of CHL called away)
Note: Closing price of CHL was $48.00 on expiration Friday.

The overall performance results(including commissions) for the CHL transactions are as follows:
Stock Purchase Cost: $8,838.95
($44.15*200+$8.95 commission)

Net Profit:
(a) Options Income: +$449.10 (200*($1.00+$1.35) - 2*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$161.05
= ($45.00-$44.15)*200 - $8.95 commissions

Total Net Profit: +$610.15
= (+$449.10 +$0.00 +$161.05)

Absolute Return: +6.9%
= +$610.15/$8,838.95
Annualized Return: +70.0%
(+$610.15/$8,838.95)*(365/36 days)


3. ENSCO International Inc (ESV) -- Closed
The Transactions History to date for the ESV covered calls is as follows:
03/23/09 Initial Stock Purchase Transaction -- Bought 400 ESV @ $29.36
03/23/09 Inital Calls Sold Transaction -- Sold 4 ESV Apr09 $30.00 Calls @ $1.80
04/18/09 Apr09 Options Exercised (400 shares of ESV called away)
Note: Closing price of ESV was $32.05 on expiration Friday.

The overall performance results(including commissions) for the ESV transactions are as follows:
Stock Purchase Cost: $11,752.95
($29.36*400+$8.95 commission)

Net Profit:
(a) Options Income: +$708.05 (400*$1.80 - $11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$247.05
= ($30.00-$29.36)*400 - $8.95 commissions

Total Net Profit: +$955.10
= (+$708.05 +$0.00 +$247.05)

Absolute Return: +8.1%
= +$955.10/$11,752.95
Annualized Return: +114.1%
(+$955.10/$11,752.95)*(365/26 days)


4. Fluor Corporation (FLR) -- Closed
The transactions history to date for the FLR covered calls is as follows:
11/24/08 Initial Stock Purchase Transaction -- Bought 600 FLR @ $35.35
11/24/08 Initial Calls Sold Transaction -- Sold 6 FLR Dec08 $35 Calls @ $3.50
12/03/08 Ex-Dividend of $75.00 ($.125*600 shares)
12/05/08 Roll-Up-And-Out Transaction:
Bought to Close 6 FLR Dec08 $35 Calls @ $10.10
Sold to Open 6 FLR Jan09 $45 Calls @ $5.30
01/17/09 Jan09 Options Expired
01/28/09 Continuation Transaction -- Sell-to-Open (STO) 6 FLR Feb09 $45s @ $2.10
Note: The price of FLR was $43.35 when the calls were sold.
02/21/09 Feb09 Options Expired
03/04/09 Ex-Dividend of $75.00 ($.125*600 shares)
03/09/09 Sell-to-Open (STO) 6 FLR Mar09 $40s @ $.65
Note: The price of FLR was $37.04 today when the calls were sold.
03/21/09 Mar09 Options Expired
03/23/09 Continuation Transaction -- Sell-to-Open (STO) 6 FLR Apr $40s @ $1.45
Note: The price of FLR was $37.05 today when the call options were sold.
04/18/09 Apr09 Options Exercised (600 shares of FLR called away)
Note: Closing price of FLR was $41.18 on expiration Friday.

The overall performance results(including commissions) for the FLR transactions are as follows:
Stock Purchase Cost: $21,218.95
($35.35*600+$8.95 commission)

Net Profit:
(a) Options Income: +$1,672.75 (600*($3.50-$10.10+$5.30+$2.10+$.65+$1.45) - 5*$13.45 commissions)
(b) Dividend Income: +$150.00 ($.125*600 shares)* 2 distributions
(c) Capital Appreciation: +$2,781.05
= ($40.00-$35.35)*600 - $8.95 commissions

Total Net Profit: +$4,603.80
= (+$1,672.75 +$150.00 +$2,781.05)

Absolute Return: +21.7%
= +$4,603.80/$21,218.95
Annualized Return: +54.6%
(+$4,603.80/$21,218.95)*(365/145 days)


5. Home Depot Inc (HD) -- Closed
The transactions history to date for the HD covered calls is as follows:
01/27/09 Initial Stock Purchase Transaction -- Bought 300 HD @ $21.95
01/27/09 Initial Calls Sold Transaction -- Sold 3 HD Feb09 $22.50 Calls @ $.89
02/21/09 Feb09 Options Expired
02/26/09 Sell-to-Open (STO) 3 HD Apr09 $22.50s @ $.65
Note: The price of HD stock was $20.69 today when the calls were sold.
03/10/09 $67.50 Ex-dividend ($.225*300 shares)
04/18/09 Apr09 Options Exercised (300 shares of HD called away)
Note: Closing price of HD was $26.10 on expiration Friday.

The overall performance results(including commissions) for the HD transactions are as follows:
Stock Purchase Cost: $6,593.95
($21.95*300+$8.95 commission)

Net Profit:
(a) Options Income: +$439.60 (300*($.89+$.65) - 2*$11.20 commissions)
(b) Dividend Income: +$67.50
(c) Capital Appreciation: +$156.05
= ($22.50-$21.95)*300 - $8.95 commissions

Total Net Profit: +$663.15
= (+$439.60 +$67.50 +$156.05)

Absolute Return: +10.1%
=+$663.15/$6,593.95
Annualized Return: +69.3%
=(+$663.15/$6,593.95)*(365/53 days)


6. iShares MSCI China ETF (FXI) -- Closed
The transactions history to date for the FXI covered calls is as follows:
12/22/08 Initial Stock Purchase Transaction -- Bought 700 FXI @ $29.23
12/22/08 Initial Calls Sold Transaction -- Sold 7 FXI Jan09 $32.00 Calls @ $.95
01/17/09 Jan09 Options Expired
02/06/09 Continuation Transaction -- Sell-to-Open (STO) 7 FXI Feb09 $30s @ $.50
Note: The price of FXI was $28.33 today when the calls were sold.
02/21/09 Feb09 Options Expired
03/13/09 Sell-to-Open (STO) 7 FXI Apr09 $30s @ $.60
Note: The price of FXI was $26.40 today when the calls were sold.
04/18/09 Apr09 Options Exercised (700 shares of FXI called away)
Note: Closing price of FXI was $32.44 on expiration Friday.

The overall performance results(including commissions) for the FXI transactions are as follows:
Stock Purchase Cost: $20,469.95
($29.23*700+$8.95 commission)

Net Profit:
(a) Options Income: +$1,392.40 (700*($.95+$.50+$.60) - 3*$14.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$530.05
= ($30.00-$29.23)*700 - $8.95 commissions

Total Net Profit: +$1,922.45
= (+$1,392.40 +$0.00 +$530.05)

Absolute Return: +9.4%
Annualized Return: +29.3%
(+$1,922.45/$20,469.95)*(365/117 days)


7. j2 Global Communications Inc (JCOM) -- Closed
The transactions history to date for the JCOM covered calls is as follows:
01/23/09 Initial Stock Purchase Transaction -- Bought 300 JCOM @ $16.76
01/23/09 Inital Calls Sold Transaction -- Sold 3 JCOM Feb09 $17.50 Calls @ $1.00
Roll-Up Spread Transaction:
02/03/09 Buy-to-Close (BTC) 3 JCOM Feb09 $17.5s @ $2.76
02/03/09 Sell-to-Open (STO) 3 JCOM Feb09 $20s @ $1.06
Note: The price of JCOM was $19.90 today when this transaction was executed.
02/21/09 Feb09 Options Expired
02/25/09 Sell-to-Open (STO) 3 JCOM Mar09 $20s @ $.75
Note: JCOM stock was priced at $19.37 today when the calls were sold.
03/21/09 Mar09 Options Expired
03/23/09 Continuation Transaction -- Sell-to-Open (STO) 3 JCOM Apr $20s @ $.90
Note: The price of JCOM was $19.75 today when the call options were sold.
Roll-Up Spread Transaction:
04/02/09 Buy-to-Close (BTC) 3 JCOM Apr09 $20s @ $3.10
04/02/09 Sell-to-Open (STO) 3 JCOM Apr09 $22.50s @ $1.20
Net Debit on Roll Up $1.90 ($3.10 - $1.20)
Note: The price of JCOM was $22.90 today when the roll-up debit-spread transaction was transacted.
04/18/09 Apr09 Options Exercised (300 shares of JCOM called away)
Note: Closing price of JCOM was $24.80 on expiration Friday.

The overall performance results(including commissions) for the JCOM transactions through the Apr09 expiration are as follows:
Stock Purchase Cost: $5,036.95
($16.76*300+$8.95 commission)

Net Profit:
(a) Options Income: -$341.00 (300*($1.00-$2.76+$1.06+$.75+$.90-$3.10+$1.20) - 5*$11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If exercised at $22.50): +$1,713.05
= ($22.50-$16.76)*300 - $8.95 commissions

Total Net Profit(If stock price exercised at $22.50): +$1,372.05
= (-$341.00 +$0.00 +$1,713.05)

Absolute Return: +27.2%
+$1,372.05/$5,036.95
Annualized Return: +117.0%
(+$1,372.05/$5,036.95)*(365/85 days)


8. Potash Corp of Saskatchewan Inc (POT) -- Closed
The transactions history to date for the POT covered calls is as follows:
03/02/09 Initial Stock Purchase Transaction -- Bought 100 POT @ $79.078
03/02/09 Inital Calls Sold Transaction -- Sold 1 POT Mar09 $80.00 Call @ $6.30
03/21/09 Mar09 Options Expired
03/23/09 Continuation Transaction -- Sell-to-Open (STO) 1 POT Apr $80s @ $6.00
Note: The price of POT was $79.85 today when the call option was sold.
04/18/09 Apr09 Options Exercised (100 shares of POT called away)
Note: Closing price of POT was $86.77 on expiration Friday.

The overall performance results(including commissions) for the POT transactions are as follows:
Stock Purchase Cost: $7,916.75
($79.078*100+$8.95 commission)

Net Profit:
(a) Options Income: +$1,210.60 (100*($6.30+$6.00) - 2*$9.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$83.25
= ($80.00-$79.078)*100 - $8.95 commissions

Total Net Profit: +$1,293.85
= (+$1,210.60 +$0.00 +$83.25)

Absolute Return: +16.3%
= +$1,293.85/$7,916.75
Annualized Return: +126.9%
(+$1,293.85/$7,916.75)*(365/47 days)


9. TeleTec Holdings Inc (TTEC) -- Closed
The transactions history to date for the TTEC covered calls is as follows:
03/23/09 Initial Stock Purchase Transaction -- Bought 600 TTEC @ $10.14
03/23/09 Inital Calls Sold Transaction -- Sold 6 TTEC Apr09 $10.00 Calls @ $.64
04/07/09 Buy-to-Close (BTC) 6 TTEC Apr09 $10s @ $2.20
04/09/09 Sell-to-Open (STO) 6 TTEC Apr09 $12.50s @ $.45
Net Debit-Spread upon Roll-Up was $1.75 ($2.20 - $.45)
Note: The price of TTEC was $12.62 today when the roll-up transaction was completed.
04/18/09 Apr09 Options Exercised (600 shares of TTEC called away)
Note: Closing price of TTEC was $12.89 on expiration Friday.

The overall performance results(including commissions) for the TTEC transactions through the Apr09 expiration was as follows:
Stock Purchase Cost: $6,092.95
($10.14*600+$8.95 commission)

Net Profit:
(a) Options Income: -$706.35 (600*($.64-$2.20+$.45) - 3*$13.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$1,407.05
= ($12.50-$10.14)*600 - $8.95 commissions

Total Net Profit: +$665.70
= (-$706.35 +$0.00 +$1,372.05)

Absolute Return: +10.9%
+$665.70/$6,092.95
Annualized Return: +153.4%
(+$665.70/$6,092.95)*(365/26 days)


10. World Fuel Services Corp (INT) -- Closed
The transactions history to date for the INT covered calls is as follows:
03/23/09 Initial Stock Purchase Transaction -- Bought 400 INT @ $31.45
03/23/09 Inital Calls Sold Transaction -- Sold 4 INT Apr09 $30.00 Calls @ $3.00
04/18/09 Apr09 Options Exercised (400 shares of INT called away)
Note: Closing price of INT was $35.80 on expiration Friday.

The overall performance results(including commissions) for the INT transactions through the Apr09 expiration is as follows:
Stock Purchase Cost: $6,092.95
($31.45*400+$8.95 commission)

Net Profit:
(a) Options Income: +$1,188.05 (400*$3.00 - $11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$588.95
= ($30.00-$31.45)*400 - $8.95 commissions

Total Net Profit: +$599.10
= (+$1,188.05 +$0.00 -$588.95)

Absolute Return: +9.8%
+$599.10/$6,092.95
Annualized Return: +138.0%
(+$665.70/$6,092.95)*(365/26 days)

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