Thursday, January 15, 2015

Sold Out Half of the Long Position in ProShares Short S&P500 Index

Today, the Covered Calls Advisor reduced the short position against the S&P 500 that was established in December on the same day as the Covered Calls Advisor's "Overvaluation Alert" (Click to view) was issued.

As shown below, 500 of the 1,000 shares in ProShares Short S&P500 Index (ticker symbol SH) were sold today.  The result was a +3.1% absolute return (equivalent to a +41.7% annualized return-on-investment) during the 27 day period that the 500 shares were held.  The detailed results for this position are:

Sold 500 Shares of ProShares Short S&P500 Index (SH)
The transactions were as follows:
12/19/2014 Bought 1,000 ProShares Short S&P 500 Index (SH) Shares @ $21.68
01/15/2015 Sold 500 SH @ $22.35
Note: 500 long SH shares are retained in the Covered Calls Advisor Portfolio

The performance result (including commissions) for this Short S&P500 position was:
Stock Purchase Cost: $10,848.95
= ($21.68*500+$8.95 commission)

Net Profit: $335.00
= ($22.35-$21.68)*500 shares

Absolute Return: +3.1%
= +$335.00/$10,848.95
Annualized Return: +41.7%
= ( +$335.00/$10,848.95)*(365/27 days)