The Covered Calls Advisor Portfolio (CCAP) contained a total of thirteen covered calls positions with October 2010 expirations, with the following results:
- Five covered calls position were well in-the-money this past week. Since the Covered Calls Advisor wanted to retain these positions going forward, decisions were made earlier this week to roll-up-and-out to Nov2010 covered calls positions in Domtar Corp, iShares MSCI China ETF, Microsoft, Oshkosh Corp, and Research in Motion. Separate posts were made on this blog earlier this week for each of these transactions on the day they occurred.
- Five positions (Guess? Inc, Intel, Neutral Tandem, ProShares UltraShort 20+ Years Treasury ETF, and Symantec Corp) closed in-the-money. The calls were exercised and the shares were called away. The annualized return-on-investment results achieved were as follows:
1. Guess? Inc. -- +110.0%
2. Intel Corp. -- +6.2%
3. Neutral Tandem Inc. -- +73.8%
4. ProShares UltraShort 20+ Years Treasury ETF -- +53.7%
5. Symantec Corp. -- +31.2%
Detailed results for each of these five covered calls positions that were assigned (called away) upon Oct2010 expiration are described below.
- The remaining three positions in the CCAP (Bank of America, Medicis Pharmaceuticals, and Petrobras) ended out-of-the-money. Decisions will be made to either sell the equities, or to keep them and sell calls to establish Nov2010 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.
The overall performance results for the five assigned covered calls positions were as follows:
1. Guess? Inc.(GES) -- Closed
The transactions history was as follows:
09/22/2010 Bought 300 GES @ $37.75
09/22/2010 Sold 3 GES Oct2010 $40.00 Calls @ $.55
10/16/2010 300 shares of GES were in-the-money and the shares were called away (assigned) at $40.00. Note: The closing price of GES was $43.33 on expiration Friday.
The overall performance results(including commissions) for the Guess? Inc.(GES) transactions were as follows:
Stock Purchase Cost: $11,333.95
= ($37.75*300+$8.95 commission)
Net Profit:
(a) Options Income: +$153.80
= (300*$.55 - $11.20 commissions)
(b) Dividend Income: $0.00
(c) Capital Appreciation (Stock assigned at $40.00): +$666.05
= ($40.00-$37.75)*300 - $8.95 commissions
Total Net Profit(Stock assigned at $40.00): +$819.85
= (+$153.80 +$0.00 +$666.05)
Absolute Return (Stock assigned at $40.00): +7.2%
= +$819.85/$11,333.95
Annualized Return: +110.0%
= (+$819.85/$11,333.95)*(365/24 days)
2. Intel Corp.(INTC) -- Closed
The transactions history was as follows:
05/21/2010 Bought 300 INTC @ $20.30
05/21/2010 Sold 3 INTC Jun2010 $22.00 Call Options @ $.52
06/21/2010 Sold 3 INTC Jul2010 $22.00 Call Options @$.46
Note: The price of INTC was $21.60 when these options were sold.
7/17/2010 Jul2010 Options Expired
Note: The closing price of INTC was $21.02 on expiration Friday.
07/22/2010 Sold 3 INTC Aug2010 $22.00 Calls @ $.42
Note: The price of INTC was $21.70 today when these options were sold.
08/04/2010 Ex-Dividend $4.00 = $.1575*300 shares
08/21/2010 Aug2010 Option Expired
Note: The closing price of INTC was $18.91 on expiration Friday.
09/03/2010 Sold 3 INTC Oct2010 $19.00 Call Options @ $.43
Note: The price of INTC was $18.24 today when these options were sold.
10/16/2010 300 shares of INTC were in-the-money and the shares were called away (assigned) at $19.00. Note: The closing price of INTC was $19.32 on expiration Friday.
The overall performance results(including commissions) for the Intel Corp(INTC) transactions were as follows:
Stock Purchase Cost: $6,098.95
= ($20.30*300+$8.95 commission)
Net Profit:
(a) Options Income: +$504.20
= 300*($.52+$.46+$.42+$.43) - 4*$11.20 commissions
(b) Dividend Income: +$47.25 ($.1575 * 300 shares)
(c) Capital Appreciation (Stock assigned at $19.00): -$398.95
= ($19.00-$20.30)*300 - $8.95 commissions
Total Net Profit(Stock assigned at $19.00): +$152.50
= (+$504.20 +$47.25 -$398.95)
Absolute Return (Stock assigned at $19.00): +2.5%
= +$152.50/$6,098.95
Annualized Return: +6.2%
= (+$152.50/$6,098.95)*(365/148 days)
3. Neutral Tandem (TNDM) -- Closed
The transactions history was as follows:
09/22/2010 Bought 500 TNDM @ $12.48
09/22/2010 Sold 5 TNDM Oct2010 $12.50 Calls @ $.63
10/16/2010 500 shares of TNDM were in-the-money and the shares were called away (assigned) at $12.50. Note: The closing price of TNDM was $14.31 on expiration Friday.
The overall performance results(including commissions) for the TNDM transactions were as follows:
Stock Purchase Cost: $6,248.95
= ($12.48*500+$8.95 commission)
Net Profit:
(a) Options Income: +$302.30
= (500*$.63 - $12.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $12.50): +$1.05
= ($12.50-$12.48)*500 - $8.95 commissions
Total Net Profit(Stock assigned at $12.50): +$303.35
= (+$302.30 +$0.00 +$1.05)
Absolute Return (Stock assigned at $12.50): +4.9%
= +$303.35/$6,248.95
Annualized Return: +73.8%
= (+$303.35/$6,248.95)*(365/24 days)
4. ProShares UltraShort 20+ Year Treasury ETF (TBT) -- Closed
The transactions history was as follows:
09/22/2010 Bought 300 TBT @ $31.75
09/22/2010 Sold 3 TBT Oct2010 $32.00 Calls @ $.94
10/16/2010 300 shares of TBT were in-the-money and the shares were called away (assigned) at $32.00. Note: The closing price of TBT was $34.17 on expiration Friday.
The overall performance results(including commissions) for the TBT transactions were as follows:
Stock Purchase Cost: $9,533.95
= ($31.75*300+$8.95 commission)
Net Profit:
(a) Options Income: +$270.80
= 300*$.94 - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (TBT shares assigned at $32.00): +$66.05
= ($32.00-$31.75)*300 - $8.95 commissions
Total Net Profit(TBT assigned at $32.00): +$336.85
= (+$270.80 +$0.00 +$66.05)
Absolute Return (TBT shares assigned at $32.00): +3.5%
= +$336.85/$9,533.95
Annualized Return: +53.7%
= (+$336.85/$9,533.95)*(365/24 days)
5. Symantec Corporation (SYMC) -- Closed
The transactions history was as follows:
06/23/2010 Bought 300 SYMC @ $14.70
06/23/2010 Sold 3 SYMC Jul2010 $15.00 Call Options @ $.31
7/17/2010 Jul2010 Options Expired
Note: The closing price of SYMC was $14.59 on expiration Friday.
07/22/2010 Sold 3 SYMC Aug2010 $15.00 Calls @ $.54
Note: The price of SYMC was $14.86 today when these options were sold.
08/21/2010 Aug2010 Option Expired
Note: The closing price of SYMC was $13.80 on expiration Friday.
09/01/2010 Sold 3 SYMC Oct2010 $15.00 Call Options @ $.44
Note: The price of SYMC was $14.07 today when these options were sold.
10/16/2010 300 shares of SYMC were in-the-money and the shares were called away (assigned) at $15.00. Note: The closing price of SYMC was $15.73 on expiration Friday.
The overall performance results(including commissions) for the Symantec Corporation (SYMC) transactions were as follows:
Stock Purchase Cost: $4,418.95
= ($14.70*300+$8.95 commission)
Net Profit:
(a) Options Income: +$353.40
= 300*($.31+$.54+$.44) - 3*$11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $15.00): +$81.05
= ($15.00-$14.70)*300 - $8.95 commissions
Total Net Profit(Stock assigned at $15.00): +$434.45
= (+$353.40 +$0.00 +$81.05)
Absolute Return (Stock assigned at $15.00): +9.8%
= +$434.45/$4,418.95
Annualized Return: +31.2%
= (+$434.45/$4,418.95)*(365/115 days)
