Last Friday was expiration Friday for November 2009. In a Covered Calls Advisor's blog recent post, it was noted that of the seventeen covered calls positions for October 2009, four were in-the-money at expiration and were therefore exercised and the stocks were called away, and thirteen positions ended out-of-the-money. Today, it was decided to sell the 300 shares of Quidel Corporation(QDEL) as follows:
1. Quidel Corporation(QDEL) -- Closed
The transactions history was as follows:
10/26/09 Bought 300 QDEL @ $15.10
10/26/09 Sold 3 QDEL Nov09 $15.00 Calls @ $.90
11/21/09 Nov09 Options Expired
11/23/09 Sold 300 QDEL @ $13.26
The overall performance results(including commissions) for the QDEL transactions were as follows:
Stock Purchase Cost: $4,538.95
= ($15.10*300+$8.95 commission)
Net Profit:
(a) Options Income: +$258.80
= (300*$.90 - $11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$560.95
= ($13.26-$15.10)*300 - $8.95 commissions
Total Net Profit: -$302.15
= (+$258.80 +$0.00 -$560.95)
Absolute Return: -6.7%
= -$302.15/$4,538.95
Annualized Return: -86.8%
= (-$302.15/$4,538.95)*(365/28 days)
