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Thursday, April 9, 2009

Roll Up -- TeleTec Holdings Inc

The Covered Calls Advisor Portfolio (CCAP) covered calls position in Teletec Holdings Inc(TTEC) was rolled-up today (04/09/09) from the Apr09 $10s to the Apr09 $12.50s. The transactions were executed as follows:

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)

The transactions history to date is as follows:
03/23/09 Bought 600 TTEC @ $10.14
03/23/09 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.

The overall performance results(including commissions) for the TTEC transactions through the Apr09 expiration would be 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 (If exercised at $12.50): +$1,407.05
= ($12.50-$10.14)*600 - $8.95 commissions

Total Net Profit(If exercised at $12.50): +$665.70
= (-$706.35 +$0.00 +$1,372.05)

Absolute Return If Exercised at $12.50 = +10.9%
+$665.70/$6,092.95
Annualized Return If Exercised (ARIE) +153.4%
(+$665.70/$6,092.95)*(365/26 days)

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