Thursday, July 22, 2010

Gap Inc. (GPS) -- Closed

Last Friday was expiration Friday for July 2010. A decision was made today to sell the 300 shares owned in Gap Inc.(GPS). The Covered Calls Advisor has decided to trade out of this position primarily because the June 2010 monthly sales results were unchanged from the same month in the prior year -- this was a disappointment relative to other American teen retailers and the stock was pummeled as a result. Also, the consumer sector will remain well represented in the Covered Calls Advisor Portfolio with the remaining current holdings in Apple, Best Buy, and DSW.

1. Gap Inc.(GPS) -- Closed
The transactions history was as follows:
06/18/2010 Bought 300 GPS @ $21.55
06/18/2010 Sold 3 GPS Jul2010 $22.00 Calls @ $.60
07/17/2010 Jul2010 Options Expired
07/22/2010 Sold 300 GPS @ $18.28

The performance result(including commissions) for the GPS transactions was as follows:
Stock Purchase Cost: $6,473.95
= ($21.55*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 sold at $18.28):
-$989.95 = ($18.28-$21.55)*300 - $8.95 commissions

Total Net Profit(Stock sold at $18.28): -$821.15
= (+$168.80 +$0.00 -$989.95)

Absolute Return (Stock Sold at $18.28): -12.7%
= -$821.15/$6,473.95

Annualized Return (Stock Sold at $18.28): -136.2%
= (-$821.15/$6,473.95)*(365 days/34 days)

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