The Covered Calls Advisor Portfolio held five positions at the Dec2016 options expiration. Three of these positions were assigned upon expiration and the maximum return-on-investment results were achieved: Link
For the other two positions [Agnico
Eagle Mines Ltd. (500 shares) and Alibaba Group Holdings (400 shares)]
the price of the equities closed below their strike prices, so the options expired worthless and the long shares were retained in the Portfolio. Today, covered calls were established to continue these two holdings as follows:
1. Agnico Eagle Mines (AEM) -- Continuing Covered Calls Position
The transactions to date are as follows:
11/16/2016 Sold 5 Dec2016 $43.00 Puts @ $1.95
Note: The price of Agnico Eagle was $43.93 when this transaction was executed.
12/16/2016 5 Put options exercised and 500 shares AEM purchased at $43.00 strike price.
12/29/2016 Sold 5 Jan2017 AEM $42.50 Call options @ $1.60 when stock price was $42.10
The Covered Calls Advisor does not use margin, so the detailed
information on this position and some potential results shown below
reflect the fact that this position was established using 100% cash
securitization for the five Put options sold.
A possible overall performance result (including commissions) for this AEM position is as follows:
Stock Purchase Cost: $21,507.95
= ($43.00*500+$7.95 commission)
(a) Options Income: +$1,751.60
= ($1.95 + $1.60)*500 shares - 2*$11.70 commissions
(b) Dividend Income: +$0.00
= ($0.00 dividend per share x 500 shares)