The Covered Calls Advisor Portfolio (CCAP) contained a total of six covered calls positions with June 2010 expirations, with the following results:
- Four positions (iShares MSCI China ETF, iShares MSCI Emerging Markets ETF, Petrobras, and Symantec Inc.) closed in-the-money. The calls were exercised and the shares of FXI, EEM, PBR, and SYMC were called away.
- Two positions in the CCAP [Intel Corp.(INTC) and the S&P 500 Spyder ETF (SPY)] ended out-of-the-money. Decisions will be made to either sell the equities, or to keep them and sell calls to establish Jul2010 covered call positions. The related transactions will be made this week and the actual transactions will be posted on this blog site on the same day they occur.
Detailed results for the four covered calls positions that were assigned (called away) upon Jun2010 expiration are as follows:
1. iShares MSCI China ETF (FXI) -- Closed
The transactions history was as follows:
11/18/09 Bought 600 FXI @ $45.54
11/18/09 Sold 6 FXI Dec09 $46.00 Calls @ $1.44
11/27/09 Bought 400 FXI @ $42.54
11/27/09 Sold 4 FXI Dec09 $44.00 Calls @ $1.13
12/19/09 Dec09 Options Expired
12/24/09 Sell-to-Open (STO) 10 FXI Jan2010 $43.00s @ $.63
Note: Price of FXI was $42.22 when the Jan2010 options were sold.
03/01/2010 Sell-to-Open (STO) 10 FXI Mar2010 $42.00s @.46
Note: Price of FXI was $40.54 when the Mar2010 options were sold.
03/20/2010 Mar2010 Options Expired
03/29/2010 Sell-to-Open (STO) 10 FXI Apr2010 $43.00s @ $.33
Note: Price of FXI was $41.49 when the Apr2010 options were sold.
04/15/2010 Buy-to-Close (BTC) 10 FXI Apr2010 $43.00s @ $.97
04/15/2010 Sell-to-Open (STO) 10 FXI May2010 $45.00s @ $.99
Note: Price of FXI was $43.92 when the May2010 options were sold.
05/22/2010 May2010 Options Expired
Note: The closing price of FXI was $38.21 on expiration Friday
6/01/2010 Sold 10 FXI Jun2010 $39.00s @ $1.34
Note: The price of FXI was approximately $39.02 when these options were sold.
06/19/2010 1,000 shares of PWR were in-the-money and the shares were called away (assigned) at $39.00. Note: The closing price of FXI was $40.66 on expiration Friday.
The performance result(including commissions) for the FXI transactions was as follows:
Stock Purchase Cost: $44,357.90
= ($45.54*600+$42.54*400+2*$8.95 commission)
Net Profit:
(a) Options Income: +$4,022.85
= (600*($1.44+$.63+$.46+$.33-$.97+$.99+$1.34)+400*($1.13+$.63+$.46+$.33-$.97+$.99+$1.34) - 7*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Equity assigned at $39.00): -$5,348.95
= [($39.00-$45.54)*600-($39.00-$42.54)*400] - $8.95 commissions
Total Net Profit(Equity assigned at $39.00): -$1,326.10
= (+$4,022.85 +$0.00 -$5,348.95)
Absolute Return (FXI Called Away at $39.00): -3.0%
= -$1,326.10/$44,357.90
Annualized Return: -5.1%
= (-$1,326.10/$44,357.90)*(365/213 days)
2. iShares MSCI Emerging Markets(EEM) -- Closed
The transactions history to date for iShares MSCI Emerging Markets(EEM) is as follows:
04/30/2010 Bought 400 EEM @ $42.55
04/30/2010 Sold 4 EEM May2010 $43.00 Calls @ $.85
05/22/2010 May2010 Options Expired
Note: The closing price of EEM was $37.34 on expiration Friday
6/01/2010 Sold 4 EEM Jun2010 $38.00s @ $1.35
Note: The price of EEM was approximately $37.82 when these options were sold.
06/19/2010 400 shares of EEM were in-the-money and the shares were called away (assigned) at $38.00. Note: The closing price of EEM was $39.92 on expiration Friday.
The overall performance result (including commissions) for the EEM transactions are as follows:
Stock Purchase Cost: $17,028.95
= ($42.55*400+$8.95 commission)
Net Profit:
(a) Options Income: +$856.10
= (400*($.85+$1.35) - 2*$11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $38.00): -$1,828.95
= ($38.00-$42.55)*400 - $8.95 commissions
Total Net Profit(Equity assigned at $38.00): -$972.85
= (+$856.10 +$0.00 -$1,828.95)
Absolute Return (EEM called away at $38.00): -5.7%
= -$972.85/$17,028.95
Annualized Return: -41.7%
= (-$972.85/$17,028.95)*(365/50 days)
3. Petrobras (PBR) -- Closed
The transactions history to date for Petrobras(PBR) is as follows:
06/03/2010 Bought 500 PBR @ $36.259
06/03/2010 Sold 5 PBR Jun2010 $38.00 Call Options @ $.56
06/19/2010 500 shares of PBR were in-the-money and the shares were called away (assigned) at $38.00. Note: The closing price of PBR was $38.29 on expiration Friday.
The overall performance result (including commissions) for the PBR transactions are as follows:
Stock Purchase Cost: $18,138.45
= ($36.259*500+$8.95 commission)
Net Profit:
(a) Options Income: +$267.30
= 500*$.56 - $12.70 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $38.00): +$861.55
= ($38.00-$36.259)*500 - $8.95 commissions
Total Net Profit(Stock assigned at $38.00): +$1,128.85
= (+$267.30 +$0.00 +$861.55)
Absolute Return (Stock called away at $38.00): +6.2%
= +$1,128.85/$18,138.45
Annualized Return: +142.0%
= (+$1,128.85/$18,138.45)*(365/16 days)
4. Symantec Inc.(SYMC) -- Closed
The transactions history to date for Symantec Inc.(SYMC) is as follows:
05/24/2010 Bought 400 SYMC @ $14.51
05/24/2010 Sold 4 SYMC Jun2010 $15.00 Call Options @ $.48
06/19/2010 400 shares of SYMC were in-the-money and the shares were called away (assigned) at $15.00. Note: The closing price of SYMC was $15.16 on expiration Friday.
The overall performance result (including commissions) for the SYMC transactions are as follows:
Stock Purchase Cost: $5,812.95
= ($14.51*400+$8.95 commission)
Net Profit:
(a) Options Income: +$180.05
= 400*$.48 - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $15.00): +$187.05
= ($15.00-$14.51)*400 - $8.95 commissions
Total Net Profit(Stock Assigned at $15.00): +$367.10
= (+$180.05 +$0.00 +$187.05)
Absolute Return (Stock Assigned at $15.00): +6.3%
= +$367.10/$5,812.95
Annualized Return: +88.7%
= (+$367.10/$5,812.95)*(365/26 days)
