The Covered Calls Advisor Portfolio (CCAP) contained a total of fourteen covered calls positions with August 2010 expirations, with the following results:
- One covered calls position in Domtar Corp.(UFS) was well in-the-money earlier this week and was rolled-up-and-out to a Sep2010 covered calls position. (See "link" to post describing this covered calls continuation trade).
- Two positions (iShares MSCI South Korea ETF and DSW Inc.) closed in-the-money. The calls were exercised and the shares of EWY and DSW were called away.
- The remaining eleven positions in the CCAP ended out-of-the-money. Decisions will be made to either sell the equities, or to keep them and sell calls to establish Sep2010 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 two covered calls positions that were assigned (called away) upon Aug2010 expiration are as follows:
1. iShares MSCI South Korea ETF (EWY) -- Closed
The transactions history to date for iShares MSCI South Korea ETF (EWY) is as follows:
06/21/2010 Bought 400 EWY @ $49.33
06/21/2010 Sold 4 EWY Jul2010 $50.00 Calls @ $.85
7/17/2010 Jul2010 Options Expired
Note: The closing price of EWY was $46.37 on expiration Friday.
07/22/2010 Sold 4 EWY Aug2010 $49.00 Calls @ $1.05
Note: The price of EWY was $47.99 today when these options were sold.
8/21/2010 400 shares of EWY were in-the-money and the shares were called away (assigned) at $49.00. Note: The closing price of EWY was $49.25 on expiration Friday.
The performance result(including commissions) for the EWY transactions was as follows:
Stock Purchase Cost: $19,740.95
= ($49.33*400+$8.95 commission)
Net Profit:
(a) Options Income: +$736.10
= (400*($.85+$1.05) - 2*$11.95 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (EWY assigned at $49.00): -$140.95
= ($49.00-$49.33)*400 - $8.95 commissions
Total Net Profit(EWY assigned at $49.00): +$595.15
= (+$736.10 +$0.00 -$140.95)
Absolute Return (EWY called away at $49.00): +3.0%
= +$595.15/$19,740.95
Annualized Return: +18.0%
= (+$587.10/$19,740.95)*(365/61 days)
2. DSW Inc.(DSW) -- Closed
The transactions history for DSW Inc.(DSW) is as follows:
06/22/2010 Bought 300 DSW @ $24.75
06/22/2010 Sold 3 DSW Jul2010 $25.00 Calls @ $1.100
7/17/2010 Jul2010 Options Expired
Note: The closing price of DSW was $23.21 on expiration Friday.
07/22/2010 Sold 3 DSW Aug2010 $25.00 Calls @ $1.05
Note: The price of DSW was $24.86 today when these options were sold.
8/21/2010 300 shares of DSW were in-the-money and the shares were called away (assigned) at $25.00. Note: The closing price of DSW was $25.74 on expiration Friday.
The performance result(including commissions) for the DSW transactions was as follows:
Stock Purchase Cost: $7,433.95
= ($24.75*300+$8.95 commission)
Net Profit:
(a) Options Income: +$622.60
= (300*($1.10+$1.05) - 2*$11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock called away at $25.00): +$66.05
= ($25.00-$24.75)*300 - $8.95 commissions
Total Net Profit(Stock assigned at $25.00): +$688.65
= (+$622.60 +$0.00 +$66.05)
Absolute Return (Stock assigned at $25.00): +9.3%
= +$688.65/$7,433.95
Annualized Return: +56.4%
= (+$688.65/$7,433.95)*(365/60 days)
