Saturday, January 30, 2016

Returns for January 2016

As shown in the chart below, the Covered Calls Advisor Portfolio (CCAP) outperformed the benchmark Russell 3000 Index by 1.97 percentage points for January 2016.  In a month when the Russell 3000 declined by 5.72%, the CCAP declined by 3.75%.  









The primary factors contributing to this outperformance were:             
1.  Established conservative in-the-money covered calls which provided greater downside protection in the down market during January; and 
2. Maintained an abnormally high cash balance average of about 40% in the portfolio during January.

As a reminder, the Covered Calls Advisor Portfolio is not identical to the advisor's personal portfolio. However, it does provide a comparable overall portfolio return result since all equities in the CCAP are also held in this advisor's personal portfolio. To ensure comparability, all transaction dates and transaction prices herein are identical to those that were established in the Covered Calls Advisor's personal portfolio. The primary difference between the two accounts is the total number of shares held for each equity. This approach is used to preserve the confidentiality of the total value of the Covered Call Advisor's personal portfolio.

The Covered Calls Advisor uses a bottom-line performance measure to determine overall portfolio investment performance results -- it is called 'Total Account Value Return Percent'. Here's an example to aid understanding of how the overall portfolio performance is determined: 
If the total CCAP portfolio value was $100,000 at the beginning of the calendar year and $110,000 at the end of that year (and with no deposits or withdrawals having been made), then the 'Total Account Value Return Percent' would be +10.0% [($110,000-$100,000)/$100,000]*100Of course, the actual 'Total Account Value Return Percent' shown also includes the value of any deposits and withdrawals made each month.

If you have any comments or questions, please email me at the address shown in the right sidebar of this blog site.

Regards and Godspeed,
Jeff

Continuation of Alibaba Group Holdings Ltd. Position

At the Jan2016 options expiration, Alibaba Group Holdings Ltd. (ticker symbol BABA) price was below the $80.00 strike price, so the 2 Jan2016 Put options expired and 200 shares of BABA were purchased at $80.00.  Today, the Covered Calls Advisor continued the Alibaba position by selling 2 Feb2016 $67.50 Call options against the 200 long BABA shares.

As of today, options have now been sold for all fifteen Feb2016 portfolio positions shown under the 'Covered Calls Advisor Portfolio Holdings' section in the right sidebar.  These fifteen positions represent 70.1% of the total portfolio value, with the other 29.9% now in cash. 

A potential return-on-investment is -10.6% absolute return (equivalent to -67.8% annualized) for the 57 days of this Alibaba investment. Details of these Alibaba Group transactions to-date and a potential return-on-investment result are provided below:

1. Alibaba Group Holdings Ltd. (BABA) --Continuation
The transactions are as follows:
12/24/2015  Sold 2 BABA 100% cash-secured $80.00 Put options with Jan2016 expirations @ $1.08
Note: the price of Alibaba was $83.92 today when this transaction was executed.
01/15/2016 2 BABA Puts expired; so 200 shares purchased @ $80.00 each
Note: the price of BABA was $69.59 upon Jan2016 options expiration
01/29/2016 Sold 2 BABA Feb2016 $67.50 Call options @ $3.05
Note: the price of Alibaba was $83.15 today when these two Call options were sold.

A potential performance result (including commissions) could be as follows:
100% Cash-Secured Cost Basis: $16,000.00
= $80.00*200

Net Profit:
(a) Options Income: +$807.10
= [($1.08 +$3.05) * 200 shares] - 2*$9.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If BABA closes above $67.50 strike price at Feb2016 expiration): -$2,500.00
= ($67.50 -$80.00)*200 shares

Total Net Profit: -$1,692.90
= (+$807.10 options income +$0.00 dividend income -$2,500.00 capital appreciation)

Absolute Return: -10.6%
= -$1,692.90/$16,000.00
Annualized Return: -67.8%
= (-$1,692.90/$16,000.00)*(365/57 days)

Monday, January 25, 2016

Continuation of Cal-Maine Foods Inc. Position

At the Jan2016 options expiration, Cal-Maine Foods Inc.(ticker symbol CALM) stock price was below the $50.00 strike price, so the 4 Jan2016 Call options expired.  Today, the Covered Calls Advisor continued the Cal-Maine covered calls position by selling 4 Feb2016 $47.50 Call options against the 400 long CALM shares.  Also, a quarterly dividend of $.751 went ex-div today.

A potential return-on-investment is +9.4% absolute return (equivalent to +43.1% annualized) for the 80 days of this Cal-Maine investment. Details of these Cal-Maine transactions to-date and a potential return-on-investment result are provided below:


1. Cal-Maine Foods Inc. (CALM) -- Continuation
The transaction was as follows:
12/01/2015  Sold 4 CALM Dec2015 $50.00 100% cash-secured Put options @ $1.20
Note: the price of CALM was $52.10 today when this transaction was executed.
12/18/2015 4 CALM Dec2015 Puts assigned and 400 shares of Cal-Maine stock purchased at $50.00 strike price
Note: the price of CALM was $47.52 upon the Dec2015 options expiration
12/24/2015 Established a covered calls position by selling 4 Jan2016 $50.00 Call options @ $2.45
Note: the price of CALM was $50.84 when these Call options were sold.
01/15/2016 4 CALM Jan2016 Call options expired
Note: the price of CALM was $49.39 at the market close on 1/15/2016 (Jan 2016 options expiration)
01/25/2016 $300.40 = ($.751 dividend x 400 shares) ex-dividend
01/25/2016 Sold 4 Feb2016 $47.50 Call options @ $2.90
Note: the price of CALM was $48.84 when these Calls were sold

A possible overall performance result (including commissions) would be as follows:
100% Cash-Secured Cost Basis: $20,000.00
= $50.00*400

Net Profit:
(a) Options Income: +$2,587.15
= ($1.20 +$2.45 +$2.90)*400 shares - 3*$10.95 commissions
(b) Dividend Income: +$300.40
= $.751 dividend x 400 shares
(c) Capital Appreciation (If CALM is above $47.50 strike price at Feb2016 expiration): -$1,000.00
= ($47.50-$50.00)*400 shares

Total Net Profit (If CALM is above $47.50 strike price at Feb2016 options expiration): +$1,887.55
= (+$2,587.15 options income +$300.40 dividend income -$1,000.00 capital appreciation)

Absolute Return (If CALM is above $47.50 strike price at Feb2016 options expiration): +9.4%
= +$1,887.55/$20,000.00
Annualized Return: +43.1%
= (+$1,887.55/$20,000.00)*(365/80 days)

Friday, January 22, 2016

Covered Calls Continuation Postions Established in Five Equities

Today, Call options were sold against long shares in each of five long equity positions (General Motors Co., iShares MSCI Emerging Markets ETF, Nationstar Mortgage Holdings Inc., Polaris Industries Inc., and The Walt Disney Co.) so that continuation covered call positions are established for the Feb2016 options expiration.  The trade history for each position is described below.  The return-on-investment results for each position will be posted on this Covered Calls Advisor site upon expiration (or on whatever date each position is closed out).

1. General Motors Co. -- Continuation
The transactions to-date are as follows:
12/28/2015  Bought 300 General Motors Co. shares @ $34.31
12/28/2015 Sold 3 GM Jan2016 $33.00 Call options @ $1.66
Note: the stock purchase and the sale of these call options was done as a simultaneous buy/write transaction.
01/15/2016 Jan2016 GM Call options expired
01/22/2016 Sold 3 GM Feb2016 $30.00 Call options @ $1.29
Note: the price of GM was $30.62 when these Call options were sold.

2. iShares MSCI Emerging Markets ETF -- Continuation
The transactions are as follows:
12/08/2015 Bought 300 iShares MSCI Emerging Markets ETF shares @ $32.59
12/08/2015 Sold 3 EEM Jan2016 $32.00 Call options @ $1.09
Note: a simultaneous buy/write transaction was executed.
12/21/2015 Ex-distribution of $.5008 per share 
01/15/2016 Jan2016 EEM Call options expired
01/22/2016 Sold 3 EEM Feb2016 $29.50 Call options @ $.75
Note: the price of EEM was $29.21 when these Call options were sold.

3. Nationstar Mortgage Holdings Inc. -- Continuation
The transactions are as follows:
12/08/2015  Sold 3 NSM Jan2016 $12.00 100% cash-secured Put options @ $.95
Note: the price of NSM was $11.68 today when this transaction was executed.
01/15/2016 3 NSM Put options expired and 300 shares were purchased at the $12.00 strike price.
Note: the price of NSM was $11.17 upon options expiration
01/22/2016 Sold 3 NSM Feb2016 $11.00 Call options @ $.55
Note: the price of NSM was $10.75 when these Call options were sold.

4. Polaris Industries, Inc. -- Continuation
The transactions are as follows:
11/24/2015 Bought 100 PII shares @ $103.92
11/24/2015 Sold 1 PII Dec2015 $100.00 Call option @ $5.32
11/27/2015 Ex-dividend of $.53 per share
12/18/2015 1 Polaris Dec2015 $100.00 Call option expired
12/23/2015 Sold 1 PII Jan2016 Call option @ $1.50
Note: the price of PII was $86.20 when this Call option was sold.
01/15/2016 Jan2016 PII Call options expired
01/22/2016 Sold 1 PII Feb2016 $80.00 Call option @ $5.90
Note: the price of PII was $82.65 when this Call option was sold.

5. The Walt Disney Company -- Continuation
The transactions are as follows:
12/21/2015  Sold 2 DIS Jan2016 $102.00 100% cash-secured Put options @ $1.83
Note: the price of DIS was $105.86 today when this transaction was executed.
01/15/2016 2 DIS Put options expired and 200 shares were purchased at the $102.00 strike price.
Note: the price of DIS was $93.90 upon options expiration
01/22/2016 Sold 2 DIS Feb2016 $95.00 Call options @ $3.95
Note: the price of DIS was $96.23 when these Call options were sold.

Covered Calls Established in BB&T Corporation and Enterprise Product Partners LP -- Both Use the Dividend Capture Strategy

Today, two new covered calls position were established in BB&T Corporation (ticker symbol BBT) and Enterprise Product Partners LP (ticker EPD) with Feb2016 expirations.  Two hundred shares of BB&T stock were purchased at $31.375 and two Feb2016 Call options were simultaneously (i.e. a single buy-write transaction) sold at the $30.00 strike price for $2.09 each.  Three hundred EPD shares were purchased at $21.85 and three Feb2016 Call options were sold at the $21.00 strike price for $1.75 each.

Both of these covered calls investments are strategic ones that explicitly consider the upcoming quarterly dividends with ex-dividend dates prior to the February 19th options expiration date.  A $.27 ex-dividend is expected on Feb 10th for BB&T and $.39 on Jan 27th for EPD.  Some details for each of these positions are provided below.

1. BB&T Corporation (BBT) -- New Covered Calls Position
Regarding the dividend capture strategy: If the current time value (i.e. extrinsic value) of $.355 [$2.09 option premium - ($31.735 stock price - $30.00 strike price)] remaining in the short call options decay substantially by February 9th (the day prior to the ex-dividend date), then there is a possibility that the call option owner will exercise his/her option and will call the stock away to capture the dividend.  

As shown below, either early assignment or assignment at the Feb2016 options expiration date will provide very good return-on-investment results.

These two potential return-on-investment results are:
If Early Assignment: +0.9% absolute return (equivalent to +17.3% annualized return for the next 18 days) if the stock is assigned early (the business day prior to the Feb 10th ex-div date); OR
If Dividend Capture:  +1.7% absolute return (equivalent to +21.6% annualized return over the next 29 days) if the stock is assigned at Feb2016 expiration on February 19th.

01/22/2016 Bought 200 BBT shares @ $31.735
01/22/2016 Sold 2 BBT Feb2016 $30.00 Call options @ $2.09
02/10/2016 Upcoming ex-dividend of $.27

Two possible overall performance results (including commissions) for this BB&T Corp. (BBT) covered calls position are as follows:
Stock Purchase Cost: $6,282.95
= ($31.735*200 +$7.95 commission)

Net Profit:
(a) Options Income: +$408.55
= ($2.09*200 shares) - $9.45 commissions
(b) Dividend Income (If option exercised early on business day prior to Feb 10th ex-div date): +$0.00; or
(b) Dividend Income (If stock assigned at Feb2016 expiration): +$54.00
= ($.27 dividend per share x 200 shares)
(c) Capital Appreciation [If stock assigned early on Feb 9th (business day prior to February 10th ex-div date)]: -$354.95
+($30.00-$31.735)*200 - $7.95 commissions; or
(c) Capital Appreciation (If stock assigned at $30.00 at Feb2016 expiration): -$354.95
+($30.00-$31.726)*200 - $7.95 commissions

Total Net Profit (If option exercised on business day prior to ex-div date): +$53.60
= (+$408.55 +$0.00 -$354.95); or
Total Net Profit (If stock assigned at $30.00 at Feb2016 expiration): +$107.60
= (+$408.55 +$54.00 -$354.95)

1. Absolute Return (If option exercised on day prior to ex-div date): +0.9%
= +$53.60/$6,282.95
Annualized Return (If option exercised early): +17.3%
= (+$53.60/$6,282.95)*(365/18 days); OR

2. Absolute Return (If stock assigned at $30.00 at Feb2016 expiration): +1.7%
= +$107.60/$6,282.95
Annualized Return (If stock assigned): +21.6%
= (+$107.60/$6,282.95)*(365/29 days)

Either outcome would provide a nice annualized return on investment.  These returns will be achieved as long as the stock is above the $30.00 strike price.


2. Enterprise Product Partners LP (EPD) -- New Covered Calls Position
A $.39 quarterly dividend goes ex-dividend on January 27th (i.e. 5 calendar days from today).  If the current time value (i.e. extrinsic value) of $.90 [$1.75 option premium - ($21.85 stock price - $21.00 strike price)] remaining in the short call options decay substantially by Jan 26th (the day prior to the ex-dividend date), then there is a possibility (albeit a very low probability) that the call option owner will exercise his/her option and will call the stock away to capture the dividend.  

As shown below, either early assignment or assignment at the Feb2016 options expiration date will provide very good return-on-investment results.

These two potential return-on-investment results are:
If Early Assignment: +3.8% absolute return (equivalent to +280.1% annualized return for the next 5 days) if the stock is assigned early (the business day prior to the Jan 27th ex-div date); OR
If Dividend Capture:  +5.6% absolute return (equivalent to +70.7% annualized return over the next 29 days) if the stock is assigned at Feb2016 expiration on February 19th.

01/22/2016 Bought 300 EPD shares @ $21.85
01/22/2016 Sold 3 EPD Feb2016 $21.00 Call options @ $1.75
The implied volatility of these Call options was 46 when they were sold.
01/27/2016 Upcoming ex-dividend of $.39 per share

Two possible overall performance results (including commissions) for this Enterprise Products Partners covered calls position are as follows:
Stock Purchase Cost: $6,562.95
= ($21.85*300+$7.95 commission)

Net Profit:
(a) Options Income: +$514.80
= ($1.75*300 shares) - $10.20 commissions
(b) Dividend Income (If option exercised early on business day prior to Jan 27th ex-div date): +$0.00; or
(b) Dividend Income (If stock assigned at Feb2016 expiration): +$117.00
= ($.39 dividend per share x 300 shares)
(c) Capital Appreciation [If stock assigned early on Jan 26th (business day prior to January 27th ex-div date)]: -$262.95
+($21.00-$21.85)*300 - $7.95 commissions; or
(c) Capital Appreciation (If stock assigned at $21.00 at Feb2016 expiration): -$262.95
+($21.00-$21.85)*300 - $7.95 commissions

Total Net Profit (If option exercised on business day prior to ex-div date): +$251.85
= (+$514.80 +$0.00 -$262.95); or
Total Net Profit (If stock assigned at $21.00 at Feb2016 expiration): +$368.85
= (+$514.80 +$117.00 -$262.95)

1. Absolute Return (If option exercised on day prior to ex-div date): +3.8%
= +$251.85/$6,562.95
Annualized Return (If option exercised early): +280.1%
= (+$251.85/$6,562.95)*(365/5 days); OR

2. Absolute Return (If stock assigned at $21.00 at Feb2016 expiration): +5.6%
= +$368.85/$6,562.95
Annualized Return (If stock assigned): +70.7%
= (+$368.85/$6,562.95)*(365/29 days)

Either outcome would provide an outstanding return.  These returns will be achieved as long as the stock is above the $21.00 strike price.

Thursday, January 21, 2016

Established Short 100% Cash-Secured Puts Position in JetBlue Airways Corp.

Today, the Covered Calls Advisor established a 100% cash-secured Puts position in JetBlue Airways Corp. (Symbol JBLU) by selling 10 Nov2016 Put options at the $17.00 strike price. This position indicates that the Covered Calls Advisor is willing to purchase JBLU shares at $17.00 (for future covered calls investments) upon the market close on Nov 18th if the stock declines to below $17.00 at that time.  This is a somewhat conservative investment since JBLU stock was at $17.45 (2.6% above the strike price) when this position was established.

As detailed below, this investment will achieve a +1.7% absolute return in 18 days (which is equivalent to a +33.9% annualized return) if the JBLU stock price remains above $17.00 at the November 18th options expiration date.

This transaction and the associated potential return-on-investment result is detailed below.

1.  JetBlue Airways Corp. (JBLU) -- New Position
The transaction was as follows:
11/01/2016 Sold 10 JBLU Nov2016 $17.00 Puts @ $.30
Note: The price of JBLU was $17.45 when this transaction was executed.

Note: The Covered Calls Advisor does not use margin, so the detailed information on this position and a potential result shown below reflect the fact that this position was established using 100% cash securitization for the ten Put options sold.

A possible overall performance result (including commissions) for this transaction would be as follows:
100% Cash-Secured Cost Basis: $17,000.00
= $17.00*1,000
Note:  the price of JetBlue stock was $17.45 when the Put options were sold.

Net Profit:
(a) Options Income: +$284.55
= ($.30*1,000 shares) - $15.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If JBLU is above $17.00 strike price at Nov2016 expiration): +$0.00
= ($17.00-$17.00)*1,000 shares

Total Net Profit (If JBLU is above $17.00 strike price upon the Nov2016 options expiration): +$284.55
= (+$284.55 +$0.00 +$0.00)

Absolute Return (If JBLU is above $17.00 strike price at Nov2016 options expiration): +1.67%
= +$284.55/$17,000.00
Annualized Return: +33.9%
= (+$284.55/$17,000.00)*(365/18 days)

The downside 'breakeven price' at expiration is at $16.70 ($17.00 - $.30), which is 4.3% below the current market price.
The 'crossover price' at expiration is $17.75 ($17.45 + $.30).  This is the price above which it would have been more profitable to simply buy-and-hold JetBlue stock until Novermber 18th (the Nov2016 options expiration date) rather than holding this short Put options position.

Wednesday, January 20, 2016

Established Position in SPDR S&P 500 ETF

The Covered Calls Advisor Portfolio established a new positions in SPDR S&P 500 ETF (ticker symbol SPYSPDR S&P 500 ETF) by selling two 100% cash-secured Put options. The Feb2016 options expiration were chosen and out-of-the-money Puts were sold with downside protection to the $181.00 strike price.

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 these positions were established using 100% cash securitization for the two Put options sold.

 As detailed below, the SPDR S&P 500 ETF investment will yield a +2.3% absolute return in 31 days (which is equivalent to a +26.7% annualized return-on-investment) if the stock closes above the $181.00 strike price on the Feb2016 options expiration date. 


1.  SPDR S&P 500 ETF (SPY) -- New Position
The transaction was as follows:
01/20//2016  Sold 2 SPY 100% cash-secured $181.00 Put options @ $4.16
Note: The price of SPY was $184.03 when this transaction was executed.

A possible overall performance result (including commissions) would be as follows:
100% Cash-Secured Cost Basis: $36,207.95
= $181.00*200 + $7.95

Net Profit:
(a) Options Income: +$822.55
= ($4.16*200 shares) - $9.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If SPY is above $181.00 strike price at Feb2016 expiration): +$0.00
= ($181.00 -$181.00)*200 shares

Total Net Profit (If SPY is above $181.00 strike price at Feb2016 options expiration): +$822.55
= (+$822.55 +$0.00 +$0.00)

Absolute Return (If SPY is above $181.00 strike price at Feb2016 options expiration): +2.3%
= +$822.55/$36,207.95
Annualized Return (If SPY is above $181.00 at expiration): +26.7%
= (+$822.55/$36,207.95)*(365/31 days)

The downside 'breakeven price' at expiration is at $176.84 ($181.00 - $4.16), which is 3.9% below the current market price of $184.03.
The 'crossover price' at expiration is $188.19 ($184.03 + $4.16).  This is the price above which it would have been more profitable to simply buy-and-hold SPY until February 19th (the Feb2016 options expiration date) rather than selling these Put options.

Current Positions

All positions with January 2016 options expirations expired last Friday.  A few ongoing covered calls positions have been established with Feb2016 options expiration dates and all current holdings are shown in the right sidebar.  Because of the large number of positions, the normal procedure of providing historical details for each individual position is not provided today since I do not have the time available now to do so.  The one new position in the S&P 500 established today is detailed in the following post and I intend to continue the normal method of posting the detailed transactions for all positions going forward.

The Covered Calls Advisor Portfolio is currently approximately 50% invested and 50% in cash, a reflection of the Overall Market Outlook of 'Slightly Bearish' and the large decline so far this year.  This year, I also intend to begin posting overall portfolio performance results monthly at the close of each calendar month.  This will compare the Covered Calls Advisor Portfolio against its Russell 3000 stock market benchmark.
    

Monday, January 4, 2016

Established Position in JPMorgan Chase & Co.

The Covered Calls Advisor Portfolio established a new positions in JPMorgan Chase & Co. (ticker symbol JPM) by selling 100% cash-secured Put options. The Feb2016 options expiration was chosen and conservative out-of-the-money Puts were sold with downside protection to the strike price.

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 these positions were established using 100% cash securitization for the Put options sold.

 As detailed below, the JPMorgan Chase & Co. investment will yield a +1.6% absolute return in 31 days (which is equivalent to a +49.4% annualized return-on-investment) if the stock closes above the $62.50 strike price on the Jan2016 options expiration date. 


1.  JPMorgan Chase & Co. (JPM) -- New Position
The transaction was as follows:
01/04//2016  Sold 3 JPM 100% cash-secured $62.50 Put options @ $1.05
Note: The price of JPM was $63.28 when this transaction was executed.

A possible overall performance result (including commissions) would be as follows:
100% Cash-Secured Cost Basis: $18,757.95
= $62.50*300 + $7.95

Net Profit:
(a) Options Income: +$304.80
= ($1.05*300 shares) - $10.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If JPM is above $62.50 strike price at Jan2016 expiration): +$0.00
= ($62.50-$62.50)*300 shares

Total Net Profit (If JPM is above $62.50 strike price at Jan2016 options expiration): +$304.80
= (+$304.80 +$0.00 +$0.00)

Absolute Return (If JPM is above $62.50 strike price at Jan2016 options expiration): +1.6%
= +$304.80/$18,757.95
Annualized Return (If JPM is above $62.50 at expiration): +49.4%
= (+$304.80/$18,757.95)*(365/12 days)

The downside 'breakeven price' at expiration is at $61.45 ($62.50 - $1.05), which is 2.9% below the current market price of $63.28.
The 'crossover price' at expiration is $64.33 ($63.28 + $1.05).  This is the price above which it would have been more profitable to simply buy-and-hold JPMorgan stock until January 15th (the Jan2016 options expiration date) rather than selling these Put options.

Friday, January 1, 2016

Early Exercise of JPMorgan Chase & Co. Covered Calls

Early this morning, I received notification from my broker that the covered calls position in JPMorgan Chase & Co. (Ticker Symbol JPM) with a Jan2016 expiration and at the $62.50 strike price was exercised early. The JPMorgan shares had risen from $64.77 when purchased to $66.03 at yesterday's market close and the time value remaining in the call option had declined to less than $.10; so the owner of the Call options exercised his/her option to buy the shares at the $62.50 strike price in order to capture Monday's quarterly ex-dividend payment of $.44 per share.

The actual return-on-investment result for this closed position was a +1.6% absolute return (equivalent to +23.9% annualized return for the 24 days holding period).

The transactions associated with this JPMorgan position were as follows:
12/11/2015 Bought 200 JPM shares @ $64.77
12/11/2015 Sold 2 JPM Jan2016 $62.50 Call options @ $3.32
12/31/2015 Early exercise of Call options; so 200 JPM shares sold at $62.50 strike price.

The overall performance result (including commissions) for this JPMorgan Chase & Co.(JPM) covered calls position were:
Stock Purchase Cost: $12,961.95
= ($64.77*200 +$7.95 commission)

Net Profit:
(a) Options Income: +$665.50
= ($3.32*200 shares) - $1.50 commissions

(b) Dividend Income (JPM stock assigned on last business day prior to Jan 4, 2016 ex-dividend date): +$0.00

(c) Capital Appreciation (stock assigned early on Dec 31st): -$461.95
+($62.50 -$64.77)*200 - $7.95 commissions; or

Total Net Profit (options exercised on last business day prior to Jan 4th ex-div date): +$203.55
= (+$665.50 +$0.00 -$461.95)

Absolute Return (options exercised on last business day prior to ex-div date): +1.6%
= +$203.55/$12,961.95
Annualized Return: +23.9%
= (+$203.55/$12,961.95)*(365/24 days)