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Saturday, November 21, 2009

November 2009 Expiration Transactions

The Covered Calls Advisor Portfolio (CCAP) contained a total of seventeen positions with November 2009 expirations, with the following results:
- Four positions (INTC, FXI, EWY, and AMTD) closed in-the-money. The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results for the four exercised positions were:

Intel Corporation (INTC): +21.3%
iShares MSCI China ETF (FXI): +43.2%
iShares MSCI South Korea ETF (EWY): +44.8%
TD Ameritrade Holding (AMTD): +52.3%

- Thirteen positions in the CCAP (ACN, AMGN, AHL, CHU, EME, FLR, FUQI, ITT, MFLX, NE, QDEL, SOHU, and UNH) ended out-of-the-money. Decisions will be made to either sell the equities, or to keep them and sell calls to establish Dec09 covered call positions. The related transactions will be made this week and the actual transactions will be posted on this blog site on the same day they occur.

Detailed results for the four positions that were assigned (called away) upon Nov09 expiration are as follows:

1. Intel Corporation (INTC) -- Closed
The transactions history was as follows:
10/27/09 Bought 700 INTC @ $19.70
10/27/09 Sold 7 INTC Nov09 $19.00 Calls @ $.88
11/04/09 $98.00 ($.14 * 700 shares) Ex-dividend
11/21/09 Nov09 Options Exercised (700 shares of INTC called away at $19.00)
Note: Closing price of INTC was $19.24 on expiration Friday.

The overall performance results(including commissions) for the INTC transactions are as follows:
Stock Purchase Cost: $13,798.95
($19.70*700+$8.95 commission)

Net Profit:
(a) Options Income: +$601.80 (700*$.88 - $14.20 commissions)
(b) Dividend Income: +$98.00 ($.14 * 700 shares)
(c) Capital Appreciation: -$498.95
= ($19.70-$19.00)*700 - $8.95 commissions

Total Net Profit: +$200.85
= (+$601.80 +$98.00 -$498.95)

Absolute Return: +1.5%
= +$200.85/$13,798.95

Annualized Return: +21.3%
= (+$200.85/$13,798.95)*(365/25 days)


2. iShares MSCI China ETF (FXI) -- Closed
The transactions history was as follows:
10/16/09 Bought 500 FXI @ $43.29
10/16/09 Sold 5 FXI Nov09 $44.00 Calls @ $1.40
10/22/09 Bought 500 FXI @ $43.73
10/22/09 Sold 5 FXI Nov09 $44.00 Calls @ $1.40
11/21/09 Nov09 Options Exercised (1000 shares of FXI called away at $44.00)
Note: Closing price of FXI was $44.60 on expiration Friday.

The overall performance results(including commissions) for the FXI transactions are as follows:
Stock Purchase Cost: $43,527.90
($43.29*500+$43.73*500+$8.95*2 commissions)

Net Profit:
(a) Options Income: +$1,374.60
= [1000*$1.40) - $25.40 commissions]
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$481.05
= [$44.00-($43.29+$43.73)/2)*1000 - $8.95 commissions

Total Net Profit: +$1,855.65
= (+$1,374.60 +$0.00 +$481.05)

Absolute Return: +4.3%
= +$1,855.65/$43,527.90
Annualized Return: +43.2%
= (+$1,855.65/$43,527.90)*(365/36 days)


3. iShares MSCI South Korea ETF (EWY) -- Closed
The transactions history was as follows:
10/16/09 Bought 400 EWY @ $45.82
10/16/09 Sold 4 EWY Nov09 $46.00 Calls @ $1.90
11/21/09 Nov09 Options Exercised (400 shares of EWY called away at $46.00)
Note: Closing price of EWY was $46.08 on expiration Friday.

The overall performance results(including commissions) for the FXI transactions are as follows:
Stock Purchase Cost: $18,336.95
($45.82*400 +$8.95 commissions)

Net Profit:
(a) Options Income: +$748.05
= [400*$1.90) - $11.95 commissions]
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$63.05
= ($46.00-$45.82)*400 - $8.95 commissions

Total Net Profit: +$811.10
= (+$748.05 +$0.00 +$63.05)

Absolute Return: +4.4%
= +$811.10/$18,336.95
Annualized Return: +44.8%
= (+$811.10/$18,336.95)*(365/36 days)


4. TD Ameritrade Holding (AMTD) -- Closed
The transactions history was as follows:
10/22/09 Bought 400 AMTD @ $19.70
10/22/09 Sold 4 AMTD Nov09 $20.00 Calls @ $.60
11/21/09 Nov09 Options Exercised (400 shares of AMTD called away at $20.00)
Note: Closing price of AMTD was $20.91 on expiration Friday.

The overall performance results(including commissions) for the AMTD transactions are as follows:
Stock Purchase Cost: $7,888.95
= ($19.70*400+$8.95 commission)

Net Profit:
(a) Options Income: +$228.05
= (400*$.60 - $11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation with Stock Exercised at $20.00: +$111.05
= ($20.00-$19.70)*400 - $8.95 commissions

Total Net Profit: +$339.10
= (+$228.05 +$0.00 +$111.05)

Absolute Return with Stock Exercised at $20.00: +4.3%
= +$339.10/$7,888.95
Annualized Return: +52.3%
= (+$339.10/$7,888.95)*(365/30 days)

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