Friday, December 18, 2009

United States Natural Gas Fund (UNG) -- Closed

The Covered Calls Advisor Portfolio (CCAP) covered calls position in the United States Natural Gas Fund (UNG) was closed out by an early exercise yesterday (Thursday).

The transactions history was as follows:
11/18/09 Bought 300 UNG @ $8.96
11/18/09 Sold 3 UNG Dec09 $9.00 Calls @ $.51
12/17/09 Early Exercise -- Sold 300 UNG @ $9.00.
The price of UNG was above $10.00 when the options were exercised yesterday and the stock was called away.

The overall performance results(including commissions) for the UNG transactions were as follows:
Stock Purchase Cost: $2,696.95
= ($8.96*300+$8.95 commission)

Net Profit:
(a) Options Income: +$141.80
= (300*$.51 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If exercised at $9.00): +$3.05
= ($9.00-$8.96)*300 - $8.95 commissions

Total Net Profit(Stock exercised at $9.00): +$144.85
= (+$141.80 +$0.00 +$3.05)

Absolute Return (Stock Exercised at $9.00: +5.4%
= +$144.85/$2,696.95
Annualized Return: +67.6%
= (+$144.85/$2,696.95)*(365/29 days)

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