As detailed below, the potential return is +2.8% absolute return in 47 days (equivalent to a +21.9% annualized return-on-investment).
Note: the Implied Volatility (IV) of the options at the time they were sold was 31.6, so these options exceeded the Covered Calls Advisor's minimum threshold of IV>20 and thus provides a sufficiently attractive potential return-on-investment for the conservative risk profile of this position.
Energy Transfer Equity LP (ETE) -- New 100% Cash-Secured Puts Position
03/06/2017 Sold 10 ETE Apr2017 $18.00 100% cash-secured Put options @ $.52
Note: the price of ETE was $18.99 when these Puts were sold
A possible overall performance result (including commissions) for this Energy Transfer position is as follows:
Stock Cost Basis: $18,000.00
= $18.00*1,000 shares
(a) Options Income: +$508.55
= ($.52*1,000 shares) - $11.45 commissions
(b) Dividend Income: +$0.00