Saturday, December 19, 2009

December 2009 Expiration Transactions

The Covered Calls Advisor Portfolio (CCAP) contained a total of thirteen positions with December 2009 expirations, with the following results:
- Six positions (ACN, ARO, DRC, EME, RKT, and UNH) closed in-the-money. The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results for the six exercised positions were:

Accenture Ltd.(ACN): +42.7%
Aeropostale Inc.(ARO): +83.2%
Dresser-Rand Group Inc.(DRC): +63.9%
EMCOR Group Inc.(EME): +66.6%
Rock-Tenn Co.(RKT): +125.3%
UnitedHealth Group Inc.(UNH): +64.0%

- Seven positions in the CCAP (AMGN, FUQI, FXI, EWY, ITT, NE, 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 Jan2010 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 six positions that were assigned (called away) upon Dec09 expiration are as follows:

1. Accenture Ltd.(ACN) -- Closed
The transactions history was as follows:
08/24/09 Bought 300 ACN @ $35.51
08/24/09 Sold 3 ACN Sep09 $35.00 Calls @ $1.15
Roll-Out Transaction:
09/18/09 Buy-to-Close (BTC) 10 ACN Sep09 $35.00s @ $1.10
09/18/09 Sell-to-Open (STO) 10 ACN Oct09 $35.00s @ $1.90
Note: The price of ACN was $36.08 today when this debit-spread was transacted.
10/13/09 Buy-to-Close (BTC) 3 ACN Oct09 $35.00s @ $4.20
10/13/09 Sell-to-Open (STO) 3 ACN Nov09 $40.00s @ $.80
Note: The price of ACN was $39.18 today when this debit-spread was transacted.
10/14/09 $225.00 Ex-Dividend ($.75*300 shares)
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 3 ACN Dec09 $40.00s @ $1.25
12/19/09 Dec09 Options Exercised (300 shares of ACN called away at $40.00)
Note: Closing price of ACN was $41.37 on expiration Friday.

The overall performance results(including commissions) for the ACN transactions were as follows:
Stock Purchase Cost: $10,661.95
= ($35.51*300+$8.95 commission)

Net Profit:
(a) Options Income: -$104.80
= (300*($1.15-$1.10+$1.90-$4.20+$.80+$1.25) - 4*$11.20 commissions)
(b) Dividend Income: +$225.00 ($.75*300 shares)
(c) Capital Appreciation (Stock exercised at $40.00): +$1,338.05
= ($40.00-$35.51)*300 - $8.95 commissions

Total Net Profit(Stock exercised at $40.00): +$1,458.25
= (-$104.80 +$225.00 +$1,338.05)

Absolute Return (Stock exercised at $40.00): +13.7%
= +$1,458.25/$10,661.95
Annualized Return: +42.7%
= (+$1,458.25/$10,661.95)*(365/117 days)

2. Aeropostale Inc.(ARO) -- Closed
The transactions history was as follows:
11/25/09 Bought 300 ARO @ $30.56
11/25/09 Sold 3 ARO Dec09 $31.00 Calls @ $1.30
12/19/09 Dec09 Options Exercised (300 shares of ARO called away at $31.00)
Note: Closing price of ARO was $32.40 on expiration Friday.

The overall performance results(including commissions) for the ARO transactions were as follows:
Stock Purchase Cost: $9,176.95
= ($30.56*300+$8.95 commission)

Net Profit:
(a) Options Income: +$378.80
= (300*$1.30 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $31.00): +$123.05
= ($31.00-$30.56)*300 - $8.95 commissions

Total Net Profit(Stock exercised at $31.00): +$501.85
= (+$378.80 +$0.00 +$123.05)

Absolute Return (Stock exercised at $31.00): +5.5%
= +$501.85/$9,176.95
Annualized Return: +83.2%
= (+$501.85/$9,176.95)*(365/24 days)

3. Dresser-Rand Group Inc.(DRC) -- Closed
The transactions history was as follows:
11/25/09 Bought 300 DRC @ $29.30
11/25/09 Sold 3 DRC Dec09 $30.00 Calls @ $.60
12/19/09 Dec09 Options Exercised (300 shares of DRC called away at $30.00)
Note: Closing price of DRC was $30.94 on expiration Friday.

The overall performance results(including commissions) for the DRC transactions were as follows:
Stock Purchase Cost: $8,798.95
= ($29.30*300+$8.95 commission)

Net Profit:
(a) Options Income: +$168.80
= (300*$.60 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $30.00): +$201.05
= ($30.00-$29.30)*300 - $8.95 commissions

Total Net Profit(Stock exercised at $30.00): +$369.85
= (+$168.80 +$0.00 +$201.05)

Absolute Return (Stock exercised at $30.00): +4.2%
= +$369.85/$8,798.95
Annualized Return: +63.9%
= (+$369.85/$8,798.95)*(365/24 days)

4. EMCOR Group Inc.(EME) -- Closed
The transactions history was as follows:
10/20/09 Bought 400 EME @ $24.35
10/20/09 Sold 4 EME Nov09 $25.00 Calls @ $.85
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 4 EME Dec09 $25.00s @ $1.25
Note: Price of EME was $25.30 when the Dec09 options were sold.
12/19/09 Dec09 Options Exercised (400 shares of EME called away at $25.00)
Note: Closing price of EME was $26.68 on expiration Friday.

The overall performance results(including commissions) for the EME transactions were as follows:
Stock Purchase Cost: $9,748.95
= ($24.35*400+$8.95 commission)

Net Profit:
(a) Options Income: +$816.10
= (400*($.85+$1.25) - 2*$11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $25.00): +$251.05
= ($25.00-$24.35)*400 - $8.95 commissions

Total Net Profit(Stock exercised at $25.00): +$1,067.15
= (+$816.10 +$0.00 +$251.05)

Absolute Return (Stock exercised at $25.00): +10.9%
= +$1,067.10/$9,748.95
Annualized Return: +66.6%
= (+$1,067.10/$9,748.95)*(365/60 days)

5. Rock-Tenn Co.(RKT) -- Closed
The transactions history was as follows:
11/25/09 Bought 300 RKT @ $46.49
11/25/09 Sold 3 RKT Dec09 $50.00 Calls @ $.40
12/19/09 Dec09 Options Exercised (300 shares of RKT called away at $50.00)
Note: Closing price of RKT was $51.72 on expiration Friday.

The overall performance results(including commissions) for the RKT transactions were as follows:
Stock Purchase Cost: $13,955.95
= ($46.49*300+$8.95 commission)

Net Profit:
(a) Options Income: +$108.80
= (300*$.40 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $50.00): +$1,044.05
= ($50.00-$46.49)*300 - $8.95 commissions

Total Net Profit(Stock exercised at $50.00): +$1,152.85
= (+$108.80 +$0.00 +$1,044.05)

Absolute Return (Stock exercised at $50.00): +8.2%
= +$1,152.85/$13,995.95
Annualized Return: +125.3%
= (+$1,152.85/$13,995.95)*(365/24 days)

6. UnitedHealth Group Inc.(UNH) -- Closed
The transactions history was as follows:
09/23/09 Bought 400 UNH @ $27.05
09/23/09 Sold 4 UNH Oct09 $26.00 Calls @ $1.95
10/17/09 Oct09 Options Expired
The closing price of UNH was $24.45 on expiration Friday.
10/19/09 Sell-to-Open (STO) 4 UNH Nov09 $26.00s @ $.80
The price of UNH was $24.77 today when this transaction was executed.
Roll-Up Transaction:
11/09/09 Buy-to-Close (BTC) 4 UNH Nov09 $26.00s @ $3.15
11/09/09 Sell-to-Open (STO) 4 UNH Nov09 $29.00s @ $.92
Note: Net Debit-Spread upon Roll-Up was $2.23 ($3.15 - $.92) and the price of UNH was $29.02 when this debit-spread was transacted.
11/21/09 Nov09 Options Expired
11/23/09 Sell-to-Open (STO) 4 UNH Dec09 $30.00s @ $.80
Note: Price of UNH was $29.34 when the Dec09 options were sold.
12/19/09 Dec09 Options Exercised (400 shares of UNH called away at $30.00)
Note: Closing price of UNH was $31.54 on expiration Friday.

The overall performance results(including commissions) for the UNH transactions were as follows:
Stock Purchase Cost: $10,828.95
= ($27.05*400+$8.95 commission)

Net Profit:
(a) Options Income: +$480.20
= (400*($1.95+$.80-$3.15+$.92+$.80) - 4*$11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $30.00): +$1,171.05
= ($30.00-$27.05)*400 - $8.95 commissions

Total Net Profit(Stock exercised at $30.00): +$1,651.25
= (+$480.20 +$0.00 +$1,171.05)

Absolute Return (Stock exercised at $30.00): +15.2%
= +$1,651.25/$10,828.95
Annualized Return: +64.0%
= (+$1,651.25/$10,828.95)*(365/87 days)

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