A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) as follows:
Established Forest Laboratories(FRX) Covered Calls for Aug08.
06/26/08 Bought 500 FRX @ $32.70
06/27/08 Sold 5 FRX Aug08 $35 Calls @ $.85
Annualized Return If Stock Price Unchanged (ARIU): +18.2%
Annualized Return If Exercised (ARIE): +67.6%
Downside Breakeven Protection: 2.6%
Friday, June 27, 2008
Wednesday, June 25, 2008
Humana and Microsoft -- Continuation Transactions
1. Humana (HUM) Continuation Transaction
The following transaction was made today to establish a covered calls position against the 200 shares of HUM:
06/25/08 Covered Calls Continuation Transaction -- STO 2 Jul08 45 Calls @ $.65
The Transactions History to date is as follows:
02/20/08 Initial Stock Purchase Transaction -- Bought 200 HUM @ $68.65
02/20/08 Initial Calls Sold Transaction -- Sold 2 HUM Mar08 70 Calls @ $2.20
03/22/08 Mar08 Options Expired
03/24/08 Covered Calls Continuation Transaction -- Sold 2 Apr08 50 Calls @ $1.25
Note: Price of HUM was $46.10 when the calls were sold today.
04/19/08 Apr08 Options Expired
04/28/08 Covered Calls Continuation Transaction -- STO 2 May08 45 Calls @ $2.10
Note: Price of HUM was $45.35 when the calls were sold today.
05/17/08 May08 Options Expired
05/29/08 Covered Calls Continuation Transaction -- STO 2 Jun08 50 Calls @ $2.50
Note: Price of HUM was $50.80 when the calls were sold today.
06/21/08 Jun08 Options Expired
06/25/08 Covered Calls Continuation Transaction -- STO 2 Jul08 45 Calls @ $.65
Note: Price of HUM was $41.95 when the calls were sold today.
The overall performance results(including commissions)for the HUM transactions through the Jul08 expiration would be as follows:
Stock Purchase Cost: $13,739.95
($68.65*200+$9.95 commission)
Net Profit:
(a) Options Income: $1,682.75 (200*($2.20+$1.25+$2.10+2.50+$.65 - 5*$11.45 commissions)
(b) Dividend Income: $0
(c) Capital Appreciation(If exercised): -$4,667.90
= ($45.00-$68.65)*200 - 2*$8.95 commissions
Total Net Profit(If stock price exercised): -$2,985.15
= (+$1,682.75+$0-$4,667.90)
Annualized Return If Exercised (ARIE) -52.9%
(-$2,985.15/$13,739.95)*(365/150 days)
2. Microsoft (MSFT) Continuation Transaction
The following transaction was made today to establish a covered calls position against the 1000 shares of MSFT:
06/25/08 Covered Calls Continuation Transaction -- STO 10 Jul08 29 Calls @ $.60
04/22/08 Initial Stock Purchase Transaction -- Bought 1000 MSFT @ $30.02
04/22/08 Initial Calls Sold Transaction -- Sold 10 MSFT May08 $31 Calls @ $.82
05/13/08 Ex-Dividend Date -- $.110 per share
05/17/08 May08 Options Expired
06/25/08 Covered Calls Continuation Transaction -- STO 10 Jul08 29 Calls @ $.60
Note: Price of MSFT was $28.40 when the calls were sold today.
The overall performance results(including commissions)for the MSFT transactions through the Jul08 expiration would be as follows:
Stock Purchase Cost: $30,028.95
($30.02*1000+$8.95 commission)
Net Profit:
(a) Options Income: $1,387.10 (1000*($.82+$.60 - 2*$16.45 commissions)
(b) Dividend Income: $110 (1000 shares * $.110)
(c) Capital Appreciation(If exercised): -$1,037.90
= ($29.00-$30.02)*1000 - 2*$8.95 commissions
Total Net Profit(If stock price exercised): +$459.20
= (+$1,387.10+$110.00-$1,037.90)
Annualized Return If Exercised (ARIE) +6.3%
(+$459.20/$30,028.95)*(365/88 days)
The following transaction was made today to establish a covered calls position against the 200 shares of HUM:
06/25/08 Covered Calls Continuation Transaction -- STO 2 Jul08 45 Calls @ $.65
The Transactions History to date is as follows:
02/20/08 Initial Stock Purchase Transaction -- Bought 200 HUM @ $68.65
02/20/08 Initial Calls Sold Transaction -- Sold 2 HUM Mar08 70 Calls @ $2.20
03/22/08 Mar08 Options Expired
03/24/08 Covered Calls Continuation Transaction -- Sold 2 Apr08 50 Calls @ $1.25
Note: Price of HUM was $46.10 when the calls were sold today.
04/19/08 Apr08 Options Expired
04/28/08 Covered Calls Continuation Transaction -- STO 2 May08 45 Calls @ $2.10
Note: Price of HUM was $45.35 when the calls were sold today.
05/17/08 May08 Options Expired
05/29/08 Covered Calls Continuation Transaction -- STO 2 Jun08 50 Calls @ $2.50
Note: Price of HUM was $50.80 when the calls were sold today.
06/21/08 Jun08 Options Expired
06/25/08 Covered Calls Continuation Transaction -- STO 2 Jul08 45 Calls @ $.65
Note: Price of HUM was $41.95 when the calls were sold today.
The overall performance results(including commissions)for the HUM transactions through the Jul08 expiration would be as follows:
Stock Purchase Cost: $13,739.95
($68.65*200+$9.95 commission)
Net Profit:
(a) Options Income: $1,682.75 (200*($2.20+$1.25+$2.10+2.50+$.65 - 5*$11.45 commissions)
(b) Dividend Income: $0
(c) Capital Appreciation(If exercised): -$4,667.90
= ($45.00-$68.65)*200 - 2*$8.95 commissions
Total Net Profit(If stock price exercised): -$2,985.15
= (+$1,682.75+$0-$4,667.90)
Annualized Return If Exercised (ARIE) -52.9%
(-$2,985.15/$13,739.95)*(365/150 days)
2. Microsoft (MSFT) Continuation Transaction
The following transaction was made today to establish a covered calls position against the 1000 shares of MSFT:
06/25/08 Covered Calls Continuation Transaction -- STO 10 Jul08 29 Calls @ $.60
04/22/08 Initial Stock Purchase Transaction -- Bought 1000 MSFT @ $30.02
04/22/08 Initial Calls Sold Transaction -- Sold 10 MSFT May08 $31 Calls @ $.82
05/13/08 Ex-Dividend Date -- $.110 per share
05/17/08 May08 Options Expired
06/25/08 Covered Calls Continuation Transaction -- STO 10 Jul08 29 Calls @ $.60
Note: Price of MSFT was $28.40 when the calls were sold today.
The overall performance results(including commissions)for the MSFT transactions through the Jul08 expiration would be as follows:
Stock Purchase Cost: $30,028.95
($30.02*1000+$8.95 commission)
Net Profit:
(a) Options Income: $1,387.10 (1000*($.82+$.60 - 2*$16.45 commissions)
(b) Dividend Income: $110 (1000 shares * $.110)
(c) Capital Appreciation(If exercised): -$1,037.90
= ($29.00-$30.02)*1000 - 2*$8.95 commissions
Total Net Profit(If stock price exercised): +$459.20
= (+$1,387.10+$110.00-$1,037.90)
Annualized Return If Exercised (ARIE) +6.3%
(+$459.20/$30,028.95)*(365/88 days)
Sunday, June 22, 2008
June 2008 Expiration Transactions
The Covered Calls Advisor Portfolio (CCAP) contained a total of 6 positions with June 2008 expirations, with the following results:
- 1 position (NKE) closed in-the-money. The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results for this position was:
Nike Inc. +38.6%
- 5 positions in the CCAP (AUO,FTO,HON,HUM and TRV) ended out-of-the-money. Decisions will be made to either sell the stock, or to keep the stock and sell calls to establish Jul08 covered call positions. The related transactions will be made during the next few days and the actual transactions will be posted on this blog site on the same day they occur.
Details for the exercised position in Nike was as follows:
1. Nike Inc -- Closed
Transactions History:
05/23/08 Bought 500 Nike @ $64.92
05/23/08 Sold 5 NKE Jun08 $65 Calls @ $1.70
06/20/08 Jun08 Options Exercised (Note: Closing price on Friday 6/20/08 was $66.73)
The overall performance results(including commissions)for the NKE transactions through the Jun08 expiration were as follows:
Stock Purchase Cost: $32,468.95
($64.92*500+$8.95 commission)
Net Profit:
(a) Options Income: +$837.30 (500*$1.70 - $12.70 commissions)
(b) Dividend Income: $0.00
(c) Capital Appreciation: +$22.10
= ($65.00-$64.92)*500 - 2*$8.95 commissions
Total Net Profit: +$859.40
= ($837.30+$0.00+$22.10)
NKE Annualized Return on Investment: +38.6%
(+$859.40/$32,468.95)*(365/25 days)
- 1 position (NKE) closed in-the-money. The calls were exercised and the stock was called away. The annualized percent return-on-investment(ROI) results for this position was:
Nike Inc. +38.6%
- 5 positions in the CCAP (AUO,FTO,HON,HUM and TRV) ended out-of-the-money. Decisions will be made to either sell the stock, or to keep the stock and sell calls to establish Jul08 covered call positions. The related transactions will be made during the next few days and the actual transactions will be posted on this blog site on the same day they occur.
Details for the exercised position in Nike was as follows:
1. Nike Inc -- Closed
Transactions History:
05/23/08 Bought 500 Nike @ $64.92
05/23/08 Sold 5 NKE Jun08 $65 Calls @ $1.70
06/20/08 Jun08 Options Exercised (Note: Closing price on Friday 6/20/08 was $66.73)
The overall performance results(including commissions)for the NKE transactions through the Jun08 expiration were as follows:
Stock Purchase Cost: $32,468.95
($64.92*500+$8.95 commission)
Net Profit:
(a) Options Income: +$837.30 (500*$1.70 - $12.70 commissions)
(b) Dividend Income: $0.00
(c) Capital Appreciation: +$22.10
= ($65.00-$64.92)*500 - 2*$8.95 commissions
Total Net Profit: +$859.40
= ($837.30+$0.00+$22.10)
NKE Annualized Return on Investment: +38.6%
(+$859.40/$32,468.95)*(365/25 days)
Thursday, June 5, 2008
Established Travelers Cos. Covered Calls
A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) as follows:
Established Travelers Companies(TRV) Covered Calls for Jun08.
05/22/08 Bought 500 TRV @ $49.28
06/05/08 Sold 5 TRV Jun08 $50 Calls @ $.85
Annualized Return If Stock Price Unchanged (ARIU): +28.4%
Annualized Return If Exercised (ARIE): +46.2%
Downside Breakeven Protection: 2.3%
Established Travelers Companies(TRV) Covered Calls for Jun08.
05/22/08 Bought 500 TRV @ $49.28
06/05/08 Sold 5 TRV Jun08 $50 Calls @ $.85
Annualized Return If Stock Price Unchanged (ARIU): +28.4%
Annualized Return If Exercised (ARIE): +46.2%
Downside Breakeven Protection: 2.3%
Tuesday, June 3, 2008
Bought Regions Financial Corp Covered Calls
A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) as follows:
Established Regions Financial Corp(RF) Covered Calls for Jul08
06/03/08 Bought 1000 RF @ $16.77
06/03/08 Sold 10 RF Jul08 $17.50 Calls @ $.75
Annualized Return If Stock Price Unchanged (ARIU): +53.4%
Annualized Return If Exercised (ARIE): +88.0%
Downside Breakeven Protection: 6.7%
The annualized returns shown above includes a $.38 ex-dividend on Jun 13th.
Established Regions Financial Corp(RF) Covered Calls for Jul08
06/03/08 Bought 1000 RF @ $16.77
06/03/08 Sold 10 RF Jul08 $17.50 Calls @ $.75
Annualized Return If Stock Price Unchanged (ARIU): +53.4%
Annualized Return If Exercised (ARIE): +88.0%
Downside Breakeven Protection: 6.7%
The annualized returns shown above includes a $.38 ex-dividend on Jun 13th.
Monday, June 2, 2008
Continuation Transaction -- Frontier Oil
The following transaction was made today to establish a covered calls position against the 500 shares of FTO:
06/02/08 Covered Calls Transaction -- STO 5 Jun08 35 Calls @ $.60
The Transactions History to date is as follows:
02/20/08 Initial Stock Purchase Transaction -- Bought 500 FTO @ $37.60
02/20/08 Initial Calls Sold Transaction -- Sold 5 FTO Mar08 40 Calls @ $1.35
03/22/08 Mar08 Options Expired
03/24/08 Covered Calls Continuation Transaction -- Sold 5 Apr08 30 Calls @ $1.45
Note: Price of FTO was $28.85 when the calls were sold today.
04/19/08 Apr08 Options Expired
06/02/08 Covered Calls Continuation Transaction -- Sold 5 Jun08 35 Calls @ $.60
The overall performance results(including commissions)for the FTO transactions through the Jun08 expiration would be as follows:
Stock Purchase Cost: $18,809.95
($37.60*500+$9.95 commission)
Net Profit:
(a) Options Income: +$1,658.90 (500*($1.35+$1.45+$.60) - 3*$13.70 commissions)
(b) Dividend Income: $0
(c) Capital Appreciation (If exercised): -$1,319.90
= ($35.00-$37.60)*500 - 2*$9.95 commissions
Total Net Profit(If stock price exercised at $35.00): +$339.00
= (+$1,658.90 +$0 -$1,319.90)
Annualized Return If Exercised (ARIE) +5.4%
(+$339.00/$18,809.95)*(365/122 days)
06/02/08 Covered Calls Transaction -- STO 5 Jun08 35 Calls @ $.60
The Transactions History to date is as follows:
02/20/08 Initial Stock Purchase Transaction -- Bought 500 FTO @ $37.60
02/20/08 Initial Calls Sold Transaction -- Sold 5 FTO Mar08 40 Calls @ $1.35
03/22/08 Mar08 Options Expired
03/24/08 Covered Calls Continuation Transaction -- Sold 5 Apr08 30 Calls @ $1.45
Note: Price of FTO was $28.85 when the calls were sold today.
04/19/08 Apr08 Options Expired
06/02/08 Covered Calls Continuation Transaction -- Sold 5 Jun08 35 Calls @ $.60
The overall performance results(including commissions)for the FTO transactions through the Jun08 expiration would be as follows:
Stock Purchase Cost: $18,809.95
($37.60*500+$9.95 commission)
Net Profit:
(a) Options Income: +$1,658.90 (500*($1.35+$1.45+$.60) - 3*$13.70 commissions)
(b) Dividend Income: $0
(c) Capital Appreciation (If exercised): -$1,319.90
= ($35.00-$37.60)*500 - 2*$9.95 commissions
Total Net Profit(If stock price exercised at $35.00): +$339.00
= (+$1,658.90 +$0 -$1,319.90)
Annualized Return If Exercised (ARIE) +5.4%
(+$339.00/$18,809.95)*(365/122 days)
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