Wednesday, November 5, 2014
Early Exercise of Boeing Covered Call Position
10/22/2014 Bought 100 BA shares @ $122.579
10/22/2014 Sold 1 BA Nov2014 $120.00 Call Option @ $4.60
Note: the price of BA was $122.90 today when this Call option was sold.
11/4/2014 Short call option assigned; so sold 100 BA shares @ $120.00
As is often the case, early assignment provides a higher annualized return than if the position had been assigned at Nov2014 expiration, so this is the Covered Calls Advisor's preferred outcome.
The details of the overall performance result (including commissions) for this Boeing Co. (BA) covered calls position were as follows:
Stock Purchase Cost: $12,266.85
= ($122.579*100+$8.95 commission)
(a) Options Income: +$450.30
= ($4.60*100 shares) - $9.70 commissions
(b) Dividend Income (Option exercised early on day prior to Nov 5th ex-div date): +$0.00
(c) Capital Appreciation (stock assigned early on Nov 4th): -$266.85