Sunday, January 17, 2010

January 2010 Expiration Transactions

The Covered Calls Advisor Portfolio (CCAP) contained a total of eleven positions with January 2010 expirations, with the following results:
- Three positions (FUQI, EWY, and RSX) closed in-the-money. The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results for the three exercised positions were:

Fuqi International Inc.(FUQI): -40.5%
iShares MSCI South Korea ETF (EWY): +53.7%
Market Vectors Russia ETF (RSX): +65.5%

- Eight positions in the CCAP (AMGN, CHU, ESV, EWZ, FLR, FXI, ITT, 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 Feb2010 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 three positions that were assigned (called away) upon Jan2010 expiration are as follows:

1. Fuqi International Inc.(FUQI) -- Closed
The transactions history was as follows:
10/16/09 Bought 200 FUQI @ $25.45
10/16/09 Sold 2 FUQI Nov09 $26.00 Calls @ $2.00
11/21/09 Nov09 Options Expired
12/03/09 Sell-to-Open (STO) 2 FUQI Dec09 $22.50s @ $.35
Note: The price of FUQI was $20.84 today when this transaction was made.
12/19/09 Dec09 Options Expired
12/24/09 Sell-to-Open (STO) 2 FUQI Jan2010 $20.00s @ $.70
Note: Price of FUQI was $19.32 when the Jan2010 options were sold.
01/16/2010 Jan2010 Options Exercised (200 shares of FUQI called away)
Note: Closing price of FUQI was $20.73 on expiration Friday.

The overall performance results(including commissions) for the FUQI transactions were as follows:
Stock Purchase Cost: $5,098.95
= ($25.45*200+$8.95 commission)

Net Profit:
(a) Options Income: +$578.65
= (200*($2.00+$.35+$.70) - 3*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock exercised at $20.00): -$1,098.95
= ($20.00-$25.45)*200 - $8.95 commissions

Total Net Profit(Stock exercised at $20.00): -$520.30
= (+$578.65 +$0.00 -$1,098.95)

Absolute Return (Stock Exercised at $20.00): -10.2%
= -$520.30/$5,098.95
Annualized Return: -40.5%
= (-$520.30/$5,098.95)*(365/92 days)

2. iShares MSCI South Korea ETF(EWY) -- Closed
The transactions history was as follows:
11/17/09 Bought 400 EWY @ $45.59
11/17/09 Sold 4 EWY Dec09 $46.00 Calls @ $1.70
12/19/09 Dec09 Options Expired
12/22/09 Sell-to-Open (STO) 4 EWY Jan2010 $47.00s @ $1.00
Note: The price of EWY was $46.35 today when the options were sold.
01/16/2010 Jan2010 Options Exercised (400 shares of EWY called away)
Note: Closing price of EWY was $49.40 on expiration Friday.

The overall performance results(including commissions) for the EWY transactions were as follows:
Stock Purchase Cost: $18,244.95
= ($45.59*400+$8.95 commission)

Net Profit:
(a) Options Income: +$1,056.10
= (400*($1.70+$1.00) - 2*$11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (EWY exercised at $47.00): +$555.05
= ($47.00-$45.59)*400 - $8.95 commissions

Total Net Profit(EWY exercised at $47.00): +$1,611.15
= (+$1,056.10 +$0.00 +$555.05)

Absolute Return (EWY Exercised at $47.00): +8.8%
= +$1,611.15/$18,244.95
Annualized Return: +53.7%
= (+$1,611.15/$18,244.95)*(365/60 days)

3. Market Vectors Russia ETF (RSX) Covered Calls -- Closed
12/21/09 Bought 300 RSX @ $31.32
12/21/09 Sold 3 RSX Jan2010 $32.00 Calls @ $.85
01/16/2010 Jan2010 Options Exercised (300 shares of RSX called away)
Note: Closing price of RSX was $33.81 on expiration Friday.

Stock Purchase Cost: $9,404.95
= ($31.32*300+$8.95 commission)

Net Profit:
(a) Options Income: +$243.80
= (300*$.85 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (RSX exercised at $32.00): +$195.05
= ($32.00-$31.32)*300 - $8.95 commissions

Total Net Profit(RSX exercised at $32.00): +$438.85
= (+$243.80 +$0.00 +$195.05)

Absolute Return (RSX Exercised at $32.00): +4.7%
= +$438.85/$9,404.95
Annualized Return: +65.5%
= (+$438.85/$9,404.95)*(365/26 days)

1 comment:

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