Today, a decision was made to retain the shares held in the remaining four positions in the Covered Calls Advisor Portfolio(CCAP): Best Buy Corp.Inc.(BBY), iShares MSCI Emerging Markets ETF(EEM), Petrobras ADR (PBR), and ProShares UltraShort 20+ Year Treasury ETF (TBT). The detailed transactions for each holding as well as some possible results for these investment are as follows:
1. Best Buy Corp. Inc.(BBY) -- Continuation
The transactions history is as follows:
01/24/2011 Bought 300 BBY @ $35.13
01/24/2011 Sell-to-Open(STO) 3 BBY Feb2011 $36.00 Calls @ $.57
02/19/2011 Feb 2011 Options Expired
03/21/2011 Sell-to-Open(STO) 3 BBY Apr2011 $34.00 Calls @ $.49
Note: the price of BBY was $31.92 today when the options were sold.
04/16/2011 Apr2011 BBY options expired.
04/26/2011 Sold 3 BBY May2011 $31.00 Calls @ $.60
Note: The price of BBY was $30.59 when these call options were sold.
05/20/2011 Bought-to-Close(BTC) 3 BBY May3011 $31.00 Calls @ $.36
Note: The price of BBY was $31.31 when the options were bought back.
05/20/2011 Sell-to-Open(STO) 3 BBY Jun2011 $32.00 Calls @ $.94
Note: The price of BBY was $31.43 when these options were sold.
06/18/2011 Jun2011 Options Expired
Note: the price of BBY was $31.01 upon options expiration.
06/28/2011 Sold 3 BBY Aug2011 $33.00 Calls @ $.83
Note: price of BBY stock was $31.90 when these options were sold.
Two possible overall performance results(including commissions) for the Best Buy Corp.(BBY) transactions would be as follows:
Stock Purchase Cost: $10,547.95
= ($35.13*300+$8.95 commission)
Net Profit:
(a) Options Income: +$853.80
= (300*($.57+$.49+$.60-$.36+$.94+$.83) - 6*$11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock price unchanged at $31.90):
-$977.95 = ($31.90-$35.13)*300 - $8.95 commissions
(c) Capital Appreciation (If assigned at $33.00): -$647.95
= ($33.00-$35.13)*300 - $8.95 commissions
Total Net Profit(If stock price unchanged at $31.90): -$124.15
= (+$853.80 +$0.00 -$977.95)
Total Net Profit(If stock assigned at $33.00): +$205.85
= (+$853.80 +$0.00 -$647.95)
1. Absolute Return if Unchanged at $31.90: -1.2%
= -$124.15/$10,547.95
Annualized Return If Unchanged (ARIU): -2.1%
= (-$124.15/$10,547.95)*(365/208 days)
2. Absolute Return if Assigned at $33.00: +2.0%
= +$205.85/$10,547.95
Annualized Return If Assigned (ARIA): +3.4%
= (+$205.85/$10,547.95)*(365/208 days)
2. iShares MSCI Emerging Markets ETF (EEM) -- Continuation
The transactions history is as follows:
04/18/2011 Bought 500 EEM @ $47.81
04/19/2011 Sold 5 EEM May2011 $49.00 Calls @ $.83
Note: the price of EEM was $48.32 when the calls were sold.
05/27/2011 Sold 5 EEM Jun2011 $49.00 Calls @ $.44
Note: the price of EEM was $47.83 when the calls were sold.
06/18/2011 Jun2011 Options Expired
Note: the price of EEM was $45.34 upon options expiration.
06/28/2011 Sold 5 EEM Jul2011 $47.00 Calls @ $.62
Note: price of EEM was $46.42 when these options were sold.
Two possible overall performance results(including commissions) for these iShares MSCI Emerging Markets ETF (EEM) transactions would be as follows:
Stock Purchase Cost: $23,913.95
= ($47.81*500+$8.95 commission)
Net Profit:
(a) Options Income: +$861.90
= [500*($.83 +$.35+$.62) - 3*$12.70 commissions]
(b) Dividend Income: $0.00
(c) Capital Appreciation (If stock unchanged at $46.42 at expiration): -$703.95
= ($46.42-$47.81)*500 - $8.95 commissions
(c) Capital Appreciation (If stock assigned at $47.00): -$413.95
= ($47.00-$47.81)*500 - $8.95 commissions
Total Net Profit (If stock price unchanged at $46.42 at expiration): +$157.95
= (+$861.90 +$0.00 -$703.95)
Total Net Profit (If stock assigned at $47.00): +$447.95
= (+$861.90 +$0.00 -$413.95)
1. Absolute Return (If stock unchanged at $46.42 at expiration): +0.7%
= +$157.95/$23,913.95
Annualized Return (If stock unchanged at expiration): +2.7%
= (+$157.95/$23,913.95)*(365/89 days)
2. Absolute Return (If stock assigned at $47.00 at expiration): +1.9%
= +$447.95/$23,913.95
Annualized Return (If stock assigned at $49.00): +7.7%
= (+$447.95/$23,913.95)*(365/89 days)
3. Petrobras ADR (PBR) -- Continuation
The transactions history to date for Petrobras ADR (PBR) is as follows:
06/21/2010 Bought 300 PBR @ $39.34
06/21/2010 Sold 3 PBR Jul2010 $40.00 Calls @ $1.05
7/17/2010 Jul2010 Options Expired
Note: The closing price of PBR was $34.51 on expiration Friday.
07/22/2010 Sold 3 PBR Aug2010 $38.00 Calls @ $.55
Note: The price of PBR was $36.52 today when these options were sold.
08/02/2010 +$57.90 Ex-Dividend = ($.193 Net Dividend x 300 shares)
08/21/2010 Aug2010 Options Expired
Note: The closing price of PBR was $34.42 on expiration Friday.
09/01/2010 Sold 3 PBR Sept2010 $36.00 Call Options @ $.58
Note: The price of PBR was $35.20 today when these call options were sold.
09/17/2010 Sep2010 Options Expired
09/20/2010 Sell-to-Open (STO) 3 PBR Oct2010 $37.00 Call Options @ $.63
Note: The price of PBR was $35.24 today when these options were sold.
10/16/2010 Oct2010 Options Expired
Note: Price of PBR at expiration was $34.29
10/18/2010 Sell-to-Open (STO) 3 PBR Nov2010 $36.00 Call Options @ $.62
Note: The price of PBR was $34.20 today when these call options were sold.
11/03/2010 +$57.90 Ex-Dividend = ($.193 Net Dividend x 300 shares)
11/20/2010 Nov2010 Options Expired
Note: Price of PBR at expiration was $33.59
12/01/2010 Sell-to-Open (STO) 3 PBR Dec2010 $34.00 Call Options @ $.54
Note: The price of PBR was $33.05 today when these call options were sold.
12/07/2010 $41.42 Dividend = ($.138 Net Dividend x 300 shares)
12/18/2010 Dec2010 Options Expired
Note: The price of PBR was $34.08 upon Dec2010 options expiration.
12/21/2010 Sold 3 PBR Jan2011 $35.00 Calls @ $.59
Note: The price of PBR was $34.18 when these options were sold.
01/06/2011 $61.03 Dividend = ($.203 Net Dividend x 300 shares)
01/21/2011 Buy-to-Close (BTC) 3 PBR Jan2011 $35.00 Call Options @ $1.35
01/21/2011 Sell-to-Open (STO) 3 PBR Feb2011 $37.00 Call Options @ $.89
02/18/2011 Buy-to-Close (BTC) 3 PBR Feb2011 $37.00 Call Options @ $.85
02/18/2011 Sell-to-Open (STO) 3 PBR Mar2011 $37.00 Call Options @ $1.67
03/18/2011 Buy-to-Close (BTC) 3 PBR Mar2011 $37.00 Call Options @ $2.19
03/18/2011 Sell-to-Open (STO) 3 PBR Apr2011 $40.00 Call Options @ $1.01
Note: The price of PBR was $39.23 when these options were sold.
04/16/2011 Apr2011 PBR Options Expired.
Note: the price of PBR was $37.81 upon options expiration.
04/20/2011 Sold 3 PBR May2011 $38.00 Calls @ $.87
Note: the price of PBR was $37.51 when these call options were sold.
05/21/2011 May2011 Options Expired
Note: the price of PBR was $33.87 upon options expiration.
06/28/2011 Sold 3 PBR Jul2011 $33.00 Calls @ $.59
Note: price of PBR was $32.82 when these options were sold.
Two possible overall performance results (including commissions) for the Petrobras (PBR) transactions would be as follows:
Stock Purchase Cost: $11,810.95
= ($39.34*300+$8.95 commission)
Net Profit:
(a) Options Income: +$1,414.40
= (300*($1.05+$.55+$.58+$.63+$.62+$.54+$.590-$1.35+$.89-$.85+$1.67-$2.19+$1.01+$.87+$.59) - 13*$11.20 commissions)
(b) Dividend Income: +$186.60 (2*$.193 + $.236)*300 shares -- Three ex-Dividend dates
(c) Capital Appreciation (If PBR price unchanged at $32.82): -$1,964.95
= ($32.82-$39.34)*300 - $8.95 commissions
(c) Capital Appreciation (If PBR assigned at $33.00): -$1,910.95
= ($33.00-$39.34)*300 - $8.95 commissions
Total Net Profit(If PBR unchanged at $32.82): -$363.95
= (+$1,414.40 +$186.60 -$1,964.95)
Total Net Profit(If PBR assigned at $33.00): -$309.95
= (+$1,414.40 +$186.60 -$1,910.95)
Absolute Return (If Unchanged at $32.82): -3.1%
= -$363.95/$11,810.95
Annualized Return If Unchanged (ARIU): -2.9%
= (-$363.95/$11,810.95)*(365/390 days)
Absolute Return (If Assigned at $33.00): -2.6%
= -$309.95/$11,810.95
Annualized Return If Assigned(ARIA): -2.5%
= ($309.95/$11,810.95)*(365/390 days)
4. ProShares UltraShort 20+ Year Treasury ETF (TBT)-- Continuation
The transactions history is as follows:
05/02/2011 Bought 200 TBT @ $35.75
05/02/2011 Sold 2 TBT May2011 $37.00 Calls @ $.36
05/21/2011 May2011 Options Expired
Note: the price of TBT was $34.16 upon options expiration.
06/28/2011 Sold 2 TBT Jul2011 $35.00 Calls @ $.39
Note: price of TBT was $33.94 when these options were sold.
Two possible overall performance results(including commissions) for the TBT transactions would be as follows:
Stock Purchase Cost: $7,158.95
= ($35.75*200+$8.95 commission)
Net Profit:
(a) Options Income: +$204.10
= 200*($.36+$.39) - 2*$10.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If TBT unchanged at $33.94):
-$548.95 = ($33.94-$35.75)*300 - $8.95 commissions
(c) Capital Appreciation (If TBT exercised at $35.00): -$233.95
= ($35.00-$35.75)*300 - $8.95 commissions
Total Net Profit(If TBT unchanged at $33.94): -$344.85
= (+$204.10 +$0.00 -$548.95)
Total Net Profit(If TBT exercised at $35.00): -$29.85
= (+$204.10 +$0.00 -$233.95)
Absolute Return if Unchanged at $33.94: -4.8%
= -$344.85/$7,158.95
Annualized Return If Unchanged (ARIU) -23.4%
= (-$344.85/$7,158.95)*(365/75 days)
Absolute Return if Assigned at $35.00: -0.4%
= -$29.85/$7,158.95
Annualized Return If Assigned (ARIA) -2.0%
= ($29.85/$7,158.95)*(365/75 days)
