June 2017 Option Expiration Results

The Covered Calls Advisor Portfolio had six positions with June 16th, 2017 options expirations.  Three positions (Antero Resources Corp., D R Horton Inc., and Voya Financial Inc.) closed in-the-money, so the maximum possible return-on-investment result was achieved.  Details of the transactions and results for each of these positions are provided below.

The return-on-investment results for each position was:

• Antero Resources Corp.:  +2.2% absolute return (+22.2% annualized return) in 36 days
• D R Horton Inc.:  +1.1% absolute return (+37.6% annualized return) in 11 days  
• Voya Financial Inc.:  +1.6% absolute return (+23.9% annualized return) in 24 days 

The cash now available in the Covered Calls Advisor Portfolio from the closing of these three positions will be retained until new Covered Calls and/or 100% Cash-Secured Puts positions are established.  Any new position(s) established with this available cash will be posted on this site on the same day the transactions occur.  

The other three positions (Devon Energy Corp., Quanta Services Inc., and Twenty-First Century Fox Inc.) closed yesterday with their stock price below their strike prices, so those shares will remain in the Covered Calls Advisor Portfolio (see holdings in right sidebar) until they are either sold or a continuation covered calls position is established. 

The details for each of the closed positions is as follows:

1.  Antero Resources Corp. -- 100% Cash-Secured Put Options Position Closed at Expiration

The Covered Calls Advisor had a position in Antero Resources Corp. (ticker symbol AR) by selling ten Jun2017 Put options at the $20.00 strike price. This position was a conservative one since it was established when the price of Antero Resources was $20.86 (4.1% downside protection to the strike price) and 36 days remaining until the options expiration date.

The implied volatility of the Put options was 30.6 when this position was established; so the $.45 price per share received when the Puts were sold was a nice premium to receive for these 4.1% out-of-the-money Put options.    

The transactions were as follows:
05/12/2017  Sold 10 AR Jun2017 $20.00 100% cash-secured Put options @ $.45
Note: the price of Antero was $20.86 when this transaction was executed.
06/16/2017 Put options expired with AR stock price of $22.60 above the $20.00 strike price

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

The overall performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $20,000.00
= $20.00*1,000
Note: the price of AR was $20.86 when these options were sold

Net Profit:
(a) Options Income: +$438.55
= ($.45*1,000 shares) - $11.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Antero stock is above $20.00 strike price at Jun2017 expiration): +$0.00
= ($20.00-$20.00)*1,000 shares

Total Net Profit: +$438.55
= (+$438.55 options income +$0.00 dividend income +$0.00 capital appreciation)

Absolute Return: +2.2%
= +$438.55/$20,000.00
Annualized Return: +22.2%
= (+$438.55/$20,000.00)*(365/36 days)




2.  D R Horton Inc. -- 100% Cash-Secured Put Options Position Closed at Expiration

The transactions were as follows:
06/06/2017  Sold 5 DHI Jun2017 $33.00 100% cash-secured Put options @ $.39
Note: the price of DHI was $33.10 when this transaction was executed.
06/16/2017 Put options expired with DHI stock price of $33.65 above the $33.00 strike price

The overall performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $16,500.00
= $33.00*500
Note: the price of DHI was $33.10 when these options were sold

Net Profit:
(a) Options Income: +$186.80
= ($.39*500 shares) - $8.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$0.00
= ($33.00-$33.00)*500 shares

Total Net Profit: +$186.80
= (+$186.80 options income +$0.00 dividend income +$0.00 capital appreciation)

Absolute Return:: +1.1%
= +$186.80/$16,500.00
Annualized Return: +37.6%
= (+$186.80/$16,500.00)*(365/11 days)




3.  Voya Financial Inc. -- 100% Cash-Secured Put Options Position Closed at Expiration

The transactions were as follows:
05/24/2017  Sold 5 VOYA Jun2017 $34.00 100% cash-secured Put options @ $.55
Note: the price of VOYA was $34.75 today when this transaction was executed.
06/16/2017 Put options expired with VOYA stock price of $36.95 above the $34.00 strike price

The overall performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $17,000.00
= $34.00*500

Net Profit:
(a) Options Income: +$266.80
= ($.55*500 shares) - $8.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$0.00
= ($34.00-$34.00)*500 shares

Total Net Profit: +$266.80
= (+$266.80 options income +$0.00 dividend income +$0.00 capital appreciation)

Absolute Return: +1.6%
= +$266.80/$17,000.00
Annualized Return: +23.9%
= (+$266.80/$17,000.00)*(365/24 days)