Established New Short 100% Cash-Secured Puts Position in Anadarko Petroleum Corporation

Today, the Covered Calls Advisor established a new position in Anadarko Petroleum Corp.(ticker symbol APC) by selling 2 Jan2015 $75.00 Put options.  As detailed below, this investment will yield a +1.2% absolute return in 8 days (which is equivalent to a +53.4% annualized return-on-investment) if APC closes above the $75.00 strike price a week from today on the Jan 16th options expiration date.  The transaction and a potential return-on-investment result is:

1.  Anadarko Petroleum Corp. (APC) -- New Position
The transaction was as follows:
01/09/2015 Sold 2 Anadarko Petroleum Corporation Jan2015 $75.00 Puts @ $.93
Note: The price of APC was $77.90 today when this transaction was executed.

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 two Put options sold.

A possible overall performance result (including commissions) for this transaction would be as follows:
100% Cash-Secured Cost Basis: $15,000.00
= $75.00*200
Note:  the price of APC was $77.90 when these Put options were sold.

Net Profit:
(a) Options Income: +$175.55
= ($.93*200 shares) - $9.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If APC is above $75.00 strike price at Jan2015 expiration): +$0.00
= ($75.00-$75.00)*200 shares

Total Net Profit (If APC is above $75.00 strike price at Jan2015 options expiration): +$175.55
= (+$175.55 +$0.00 +$0.00)

Absolute Return (If APC is above $75.00 strike price at Jan2015 options expiration): +1.2%
= +$175.55/$15,000.00
Annualized Return (If APC is above $75.00 at expiration): +53.4%
= (+$175.55/$15,000.00)*(365/8 days)

The downside 'breakeven price' at expiration is at $74.07 ($75.00 - $.93), which is 4.9% below the current market price of $77.90.
The 'crossover price' at expiration is $78.83 ($77.90 + $.93).  This is the price above which it would have been more profitable to simply buy-and-hold APC until Jan 16th (the Jan2015 options expiration date) rather than purchasing these short Put options.

Established New Short 100% Cash-Secured Puts Position in General Electric Company

Yesterday, the Covered Calls Advisor established a new position in the General Electric Company (ticker symbol GE) by selling 4 Jan2015 $24.00 Put options.  As detailed below, this investment will yield a +1.3% absolute return in 12 days (which is equivalent to a +39.3% annualized return-on-investment) if GE closes above the $24.00 strike price on the Jan 16th options expiration date.  The transaction and a potential return-on-investment result is:

1.  General Electric Company (GE) -- New Position
The transaction was as follows:
01/06/2015 Sold 4 General Electric Co Jan2015 $24.00 Puts @ $.34
Note: The price of GE was $24.00 when this transaction was executed.

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 four Put options sold.

A possible overall performance result (including commissions) for this transaction would be as follows:
100% Cash-Secured Cost Basis: $9,600.00
= $24.00*400
Note:  the price of GE was $24.00 when these Put options were sold.

Net Profit:
(a) Options Income: +$124.05
= ($.34*400 shares) - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If GE is above $24.00 strike price at Jan2015 expiration): +$0.00
= ($24.00-$24.00)*400 shares

Total Net Profit (If GE is above $24.00 strike price at Jan2015 options expiration): +$124.05
= (+$124.05 +$0.00 +$0.00)

Absolute Return (If GE is above $24.00 strike price at Jan2015 options expiration): +1.3%
= +$124.05/$9,600.00
Annualized Return (If GE is above $24.00 at expiration): +39.3%
= (+$124.05/$9,600.00)*(365/12 days)

The downside 'breakeven price' at expiration is at $23.66 ($24.00 - $.34), which is 1.3% below the current market price of $24.00.
The 'crossover price' at expiration is $24.34 ($24.00 + $.34).  This is the price above which it would have been more profitable to simply buy-and-hold GE until Jan 16th (the Jan2015 options expiration date) rather than purchasing these short Put options.

Established New Short 100% Cash-Secured Puts Position in Apple Inc.

Today, the Covered Calls Advisor established a new position in Apple Inc. (Symbol AAPL) by selling 2 Jan9th2015 $105.00 Put options. This is a Weekly position and reflects that the Covered Calls Advisor would be very willing to purchase Apple Inc. shares at $105.00 (for future covered calls investments) upon the close of business this Friday if the stock continues to decline to below the $105.00 strike price.  If the stock remains above $105 by the market close this Friday, then the $213.55 profit (a 1.0% absolute return-on-investment result in only 5 days) as detailed below will have been achieved.  This transaction and the potential return-on-investment result is:

1.  Apple Inc. (AAPL) -- New Position
The transaction was as follows:
01/05/2015 Sold 2 Apple Inc. Jan 9, 2015 $105.00 Puts @ $1.12
Note: The price of AAPL was $106.53 when this transaction was executed.

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 two Put options sold.

A possible overall performance result (including commissions) for this transaction would be as follows:
100% Cash-Secured Cost Basis: $21,000.00
= $105.00*200
Note:  the price of AAPL was $106.53 when these Put options were sold.

Net Profit:
(a) Options Income: +$213.55
= ($1.12*200 shares) - $10.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If AAPL is above $105.00 strike price at Jan 9th, 2015 expiration): +$0.00
= ($105.00-$105.00)*200 shares

Total Net Profit (If AAPL is above $105.00 strike price upon this Friday's options expiration): +$213.55
= (+$213.55 +$0.00 +$0.00)

Absolute Return (If AAPL is above $105.00 strike price at Jan 9th, 2015 options expiration): +1.0%
= +$213.55/$21,000.00

Continuation of Covered Calls Position in Agnico Eagle Mines Ltd.

Today, the covered calls position in Agnico Eagle Mines Ltd. (ticker symbol AEM) was continued by selling three Jan2015 $27.50 strike price Call options.  The transactions to date for this AEM position and two possible resulting return-on-investment results are as follows:

1.  Agnico Eagle Mines Ltd. (AEM) -- Continuation
The transactions are as follows:
09/24/2014 Sold 3 Oct2014 $30.00 Puts @ $1.10
Note: The price of Agnico Eagle was $30.03 when this transaction was executed.
10/17/2014 3 Oct2014 $30.00 Puts expired
Note: the price of AEM was $28.72 when these Puts expired
10/20/2014 Sold 3 Nov2014 $30.00 Calls @ $1.75
Note: the price of AEM was $29.55 when these options were sold.
11/21/2014 3 Nov2014 Call options expired
Note: the price of AEM was $26.64 today upon Nov2014 options expiration
12/09/2014 Sold 3 AEM Dec2014 $27.50 Call options @ $.35
Note: the price of AEM was $25.52 when these 3 Call options were sold.
12/20/2014 3 Dec2014 $27.50 Call options expired
01/05/2015 Sold 3 AEM Jan2015 $27.50 Call options @ $1.03
Note: the price of AEM was $27.25 when these Call options were sold.

Two possible overall performance results (including commissions) for this Agnico Eagle Mines transaction would be as follows:
100% Cash-Secured Cost Basis: $9,000.00 = $30.00*300
Note: the price of AEM was $30.03 when these Put options were sold.

Net Profit:
(a) Options Income: +$1,224.20
= ($1.10+$1.75+$.35+$1.03)*300 shares - 4*$11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If AEM close at current market price of $27.25 at Jan2015): -$825.00
= ($27.25-$30.00)*300 shares; OR
(c) Capital Appreciation (If AEM close above $27.50 at Jan2015 expiration): -$750.00
= ($27.50-$30.00)*300 shares

1.  Total Net Profit (If AEM closes at current market price of $27.25 at Jan2015 options expiration): +$399.20 
= (+$1,224.20 +$0.00 -$825.00); OR
2. Total Net Profit (If AEM is above $27.50 strike price at Jan2015 options expiration): +$474.20 
= (+$1,224.20 +$0.00 -$750.00)

1. Absolute Return (If AEM is at $27.25 current market price at Jan2015 options expiration and Call options thus expire worthless):  +4.4%
= +$399.20/$9,000.00
Annualized Return (If AEM is unchanged at $27.25 at Jan2015 expiration): +14.1%
= (+$399.20/$9,000.00)*(365/115 days); OR
2. Absolute Return (If AEM is above $27.50 strike price at Jan2015 options expiration and Call options are assigned): +5.3%
= +$474.20/$9,000.00
Annualized Return (If AEM is above $27.50 at Jan2015 expiration): +16.7%
= (+$474.20/$9,000.00)*(365/115 days)