Saturday, June 20, 2009

June 2009 Expiration Transactions

The Covered Calls Advisor Portfolio (CCAP) contained a total of eleven positions with June 2009 expirations, with the following results:
- Eight positions (AMGN, BYI, FLR, HA, HPQ, FXI, NE and 400 shares of SOHU) closed in-the-money. The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results for the eight exercised positions were:

Amgen Inc (AMGN): +45.5%
Bally Technologies Inc.(BYI): +51.4%
Fluor Corporation (FLR): +84.2%
Hawaiian Holdings Inc. (HA): +187.5%
Hewlett-Packard Company (HPQ): +65.1%
iShares MSCI China ETF (FXI): +55.3%
Noble Corp (NE): +85.8%
Sohu.com Inc (SOHU): +93.3%

- Three positions in the CCAP (CHL,IWM,and 400 shares of SOHU) ended out-of-the-money. Decisions will be made to either sell the equities, or to keep them and sell calls to establish Jul09 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.

Detailed results for the eight positions that were assigned (called away) upon Jun09 expiration are as follows:

1. Amgen Inc(AMGN) -- Closed
The transactions history for the AMGN covered calls was:
03/23/09 Initial Stock Purchase Transaction -- Bought 300 AMGN @ $48.95
03/23/09 Inital Calls Sold Transaction -- Sold 3 AMGN Apr09 $50.00 Calls @ $1.70
04/18/09 Apr09 Options Expired
04/24/09 Continuation Transaction -- Sell-to-Open (STO) 3 AMGN May09 $50s @ $1.05
Note: The price of AMGN was $48.95 today when the call options were sold.
05/16/09 May09 Options Expired
Note: The closing price of AMGN was $48.16 on expiration Friday.
05/18/09 Sell-to-Open (STO) 3 AMGN Jun09 $50s @ $1.12
Note: The price of AMGN was $48.30 today when the call options were sold.
06/20/09 Jun09 Options Exercised (300 shares of AMGN called away)
Note: Closing price of AMGN was $52.34 on expiration Friday.

The overall performance results(including commissions) for the AMGN transactions were as follows:
Stock Purchase Cost: $14,693.95
($48.95*300+$8.95 commission)

Net Profit:
(a) Options Income: +$1,127.40 [300*($1.70+$1.05+$1.12) - 3*$11.20 commissions]
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $50.00): +$501.05
= ($50.00-$48.30)*300 - $8.95 commissions

Total Net Profit: +$1,628.45
= (+$1,127.40 +$0.00 +$501.05)

Absolute Return with Stock Exercised at $50.00: +11.1%
= +$1,628.45/$14,693.95
Annualized Return: +45.5%
= (+$1,628.45/$14,693.95)*(365/89 days)


2. Bally Technologies Inc. (BYI) -- Closed
The transactions history for the BYI covered calls was:
05/21/09 Bought 500 BYI @ $26.63
05/21/09 Sold 5 BYI Jun09 $25.00 Calls @ $2.80
06/20/09 Jun09 Options Exercised (500 shares of BYI called away)
Note: Closing price of BYI was $28.68 on expiration Friday.

The overall performance results(including commissions) for the BYI transactions were as follows:
Stock Purchase Cost: $13,323.95
($26.63*500+$8.95 commission)

Net Profit:
(a) Options Income: +$1,387.30 (500*$2.80 - $12.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $25.00): -$823.95
= ($25.00-$26.63)*500 - $8.95 commissions

Total Net Profit: +$563.35
= (+$1,387.30 +$0.00 -$823.95)

Absolute Return with Stock Exercised at $25.00: +4.2%
= +$563.35/$13,323.95
Annualized Return: +51.4%
= (+$563.35/$13,323.95)*(365/30 days)

3. Fluor Corporation (FLR) -- Closed
The Transactions History to date for the FLR covered calls is as follows:
04/24/09 Initial Stock Purchase Transaction -- Bought 500 FLR @ $39.975
04/24/09 Inital Calls Sold Transaction -- Sold 5 FLR May09 $40.00 Calls @ $2.40
Roll-Up-and-Out transactions:
05/12/09 Buy-to-Close (BTC) 5 FLR May09 $40.00s @ $6.10
05/12/09 Sell-to-Open (STO) 5 FLR Jun09 $45.00s @ $3.90
06/20/09 Jun09 Options Exercised (500 shares of FLR called away)
Note: Closing price of FLR was $50.27 on expiration Friday.

The overall performance results(including commissions) for the FLR transactions through the Jun09 expiration would be as follows:

Stock Purchase Cost: $19,996.45
($39.975*500+$8.95 commission)

Net Profit:
(a) Options Income: +$61.90 (500*($2.40-$6.10+$3.90) - 3*$12.70 commissions)
(b) Dividend Income: +$62.50 Ex-Div on 6/3/09 ($.125*500 shares)
(c) Capital Appreciation (Stock exercised at $45.00): +$2,503.55
= ($45.00-$39.975)*500 - $8.95 commissions

Total Net Profit(Stock exercised at $45.00): +$2,627.95
= (+$61.90 +$62.50 +$2,503.55)

Absolute Return (Exercised at $45.00): +13.1%
+$2,627.95/$19,996.45
Annualized Return: +84.2%
(+$2,627.95/$19,996.45)*(365/57 days)

4. Hawaiian Holdings Inc. (HA) -- Closed
The Transactions History to date for the HA covered calls is as follows:
05/14/09 Bought 500 HA @ $4.7896
05/14/09 Sold 5 HA Jun09 $5.00 Calls @ $.70
06/20/09 Jun09 Options Exercised (500 shares of HA called away)
Note: Closing price of HA was $5.30 on expiration Friday.

Stock Purchase Cost: $2,403.75
($4.7896*500+$8.95 commission)

Net Profit:
(a) Options Income: +$337.30 (500*$.70 - $12.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $5.00): +$96.25
= ($5.00-$4.7896)*500 - $8.95 commissions

Total Net Profit(Stock exercised at $5.00): +$433.55
= (+$337.30 +$0.00 +$96.25)

Absolute Return (Stock Exercised at $5.00): +19.0%
=[$.70+($5.00-$4.7896)]/$4.7896
Annualized Return If Exercised (ARIE): +187.5%
=([$.70+($5.00-$4.7896)]/$4.7896)*(365/37 days)

5. Hewlett-Packard Company (HPQ) -- Closed
The Transactions History to date for the HPQ covered calls is as follows:
05/18/09 Bought 600 HPQ @ $35.28
05/18/09 Sold 6 HPQ Jun09 $36.00 Calls @ $1.40
06/20/09 Jun09 Options Exercised (600 shares of HPQ called away)
Note: Closing price of HPQ was $38.35 on expiration Friday.

Stock Purchase Cost: $17,648.95
($35.28*500+$8.95 commission)

Net Profit:
(a) Options Income: +$687.30 (500*$1.40 - $12.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $36.00): +$351.05
= ($36.00-$35.28)*500 - $8.95 commissions

Total Net Profit(Stock exercised at $36.00): +$1,038.35
= (+$687.30 +$0.00 +$351.05)

Absolute Return (Stock Exercised at $36.00): +5.9%
= $1,038.35/$17,648.95
Annualized Return: +65.1%
= ($1,038.35/$17,648.95)*(365/33 days)

6. iShares MSCI China Fund ETF (FXI) -- Closed
The Transactions History to date for the FXI covered calls is as follows:
05/18/09 Bought 1500 FXI @ $34.98
05/18/09 Sold 15 FXI Jun09 $35.00 Calls @ $1.75
06/20/09 Jun09 Options Exercised (1500 shares of FXI called away)
Note: Closing price of FXI was $37.27 on expiration Friday.

Stock Purchase Cost: $52,478.95
($34.98*1500+$8.95 commission)

Net Profit:
(a) Options Income: +$2,604.80 (1500*$1.75 - $20.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $35.00): +$21.05
= ($35.00-$34.98)*1500 - $8.95 commissions

Total Net Profit(Stock exercised at $35.00): +$2,625.85
= (+2,604.80 +$0.00 +$21.05)

Absolute Return (Stock Exercised at $35.00): +5.0%
= $2,635.85/$52,478.95
Annualized Return: +55.3%
= ($2,635.85/$52,478.95)*(365/33 days)

7. Noble Corp (NE) -- Closed
The Transactions History to date for the FXI covered calls is as follows:
05/18/09 Initial Stock Purchase Transaction -- Bought 500 NE @ $29.000
05/18/09 Inital Calls Sold Transaction -- Sold 5 NE Jun09 $27.50 Calls @ $2.52
A debit-spread transaction was executed as follows:
05/28/09 Buy-to-Close (BTC) 5 NE Jun09 $27.50s @ $5.20
05/28/09 Sell-to-Open (STO) 5 NE Jun09 $32.50s @ $1.50
Note: The price of NE was $32.51 today when the debit-spread was transacted.
06/20/09 Jun09 Options Exercised (500 shares of NE called away)
Note: Closing price of NE was $33.47 on expiration Friday.

The overall performance results(including commissions) for the NE transactions were as follows:
Stock Purchase Cost: $14,508.95
($29.00*500+$8.95 commission)

Net Profit:
(a) Options Income: -$615.40
= (500*($2.52-$5.20+$1.50) - 2*$12.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $32.50): +$1,741.05
= ($32.50-$29.00)*500 - $8.95 commissions

Total Net Profit(Stock exercised at $32.50): +$1,125.65
= (-$615.40 +$0.00 +$1,741.05)

Absolute Return (Stock Exercised at $32.50): +7.8%
= +$1,125.65/$14,508.95
Annualized Return If Exercised (ARIE) +85.8%
=(+$1,125.65/$14,508.95)*(365/33 days)

8. Sohu.com Inc (SOHU) -- Closed
The Transactions History to date for the SOHU covered calls were as follows:
02/24/09 Bought 400 SOHU @ $44.617
02/24/09 Sold 4 SOHU Mar09 $45.00 Calls @ $3.20
03/21/09 Mar09 Options Expired
03/23/09 Continuation Transaction -- Sell-to-Open (STO) 4 SOHU Apr $45s @ $1.45
Note: The price of SOHU was $40.10 today when the call options were sold.
04/13/09 Buy-to-Close (BTC) 4 SOHU Apr09 $45.00s @ $5.20
04/13/09 Sell-to-Open (STO) 4 SOHU May09 $50.00s @ $4.30
Net Debit-Spread upon Roll-Up-and-Forward was $.90 ($5.20 - $4.30)
Note: The price of SOHU was $49.90 today when the call options were sold.
05/04/09 Buy-to-Close (BTC) 4 SOHU May09 $50s @ $8.95
05/04/09 Sell-to-Open (STO) 4 SOHU May09 $60s @ $1.95
Net Debit-Spread upon Roll-Up was $7.00 ($8.95 - $1.95)
Note: The price of SOHU was $58.65 today when the call options were sold.
05/16/09 May09 Options Expired
Note: The closing price of SOHU was $52.58 on expiration Friday.
05/18/09 Sell-to-Open (STO) 4 SOHU Jun09 $60s @ $1.25
Note: The price of SOHU was $53.98 today when the call options were sold.
06/20/09 Jun09 Options Exercised (400 shares of SOHU called away)
Note: Closing price of SOHU was $64.55 on expiration Friday.

The overall performance results(including commissions) for the SOHU transactions are as follows:
Stock Purchase Cost: $17,855.75
($44.617*400+$8.95 commission)

Net Profit:
(a) Options Income: -$852.25 (400*($3.20+$1.45-$5.20+$4.30-$8.95+$1.95+$1.25) - 5*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $60.00): +$6,144.25
= ($60.00-$44.617)*400 - $8.95 commissions

Total Net Profit(Stock exercised at $60.00): +$5,292.00
= (-$852.25 +$0.00 +$6,144.25)

Absolute Return (Stock Exercised at $60.00): +29.6%
= +$5,292.00/$17,855.75
Annualized Return: +93.3%
= (+$5,292.00/$17,855.75)*(365/116 days)

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