The Covered Calls Advisor Portfolio (CCAP) contained a total of eleven covered calls positions with July 2011 expirations, with the following results:
- One Jul2011 covered calls position in Microsoft Corp.(MSFT) was in-the-money late this past week and was rolled-up-and-out to an Aug2011 covered calls position. These transactions were reported on this blog on Thursday when they occurred.
- Seven covered calls positions in the CCAP (China Mobile Ltd., International Paper, iShares MSCI China ETF, iShares MSCI Emerging Markets ETF, Morgan Stanley, Petrobras, and ProShares UltraShort 20+ Year Treasury ETF) ended out-of-the-money. Decisions will be made to either sell the equities, or to keep them and sell calls to establish August 2011 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.
- Three covered calls positions (Apple Inc., Freeport McMoran Copper and Gold Inc., and iShares MSCI South Korea ETF) were in-the-money and were called away upon option expiration last Friday. The annualized return on investment results for these covered calls were:
- Apple Inc. -- +31.8%
- Freeport McMoRan Copper and Gold, Inc. -- +20.7%
- iShares MSCI South Korea ETF -- +16.9%
The detailed history for these positions are provided below.
1. Apple Inc.(AAPL) -- Closed
The transactions history is as follows:
12/20/2010 Bought 100 AAPL @ $321.10
12/21/2010 Sold 1 AAPL Jan2011 $330.00 Call @ $6.10
Note: The call option was sold today when the AAPL stock was trading at $324.10.
01/22/2011 Jan2011 AAPL options expired
Note: The price of AAPL was $326.72 at closing on expiration Friday.
01/24/2011 Sold 1 AAPL Feb2011 $340.00 Call @ $5.50
Note: The price of AAPL was $333.72 when this Call option was sold.
02/19/2011 Feb2011 AAPL options expired
02/28/2011 Sold 1 AAPL Apr2011 $360.00 Call @ $10.80
Note: The price of AAPL was $354.32 when this Call option was sold.
04/16/2011 Apr2011 AAPL options expired.
04/26/2011 Sold 1 AAPL May2011 $350.00 Call @ $8.95
Note: The price of AAPL was $353.06 when this call option was sold.
05/31/2011 Sold 1 AAPL Jun2011 $360.00 Call @ $.90
Note: The price of AAPL was $343.63 when this call option was sold.
06/18/2011 Jun2011 Options Expired
Note: the price of AAPL was $320.26 upon options expiration.
06/28/2011 Sold 1 AAPL Jul2011 $345.00 Call Option @ $2.77
Note: price of AAPL stock was $335.75 when this option was sold.
07/16/2011 Jul2011 AAPL Options Expired.
Note: the price of AAPL was $364.92 upon options expiration.
The resulting overall performance (including commissions) for these Apple Inc.(AAPL) transactions was as follows:
Stock Purchase Cost: $32,118.95
= ($321.10*100+$8.95 commission)
Net Profit:
(a) Options Income: +$3,443.80
= [100*($6.10+$5.50+$10.80+$8.95+$.90+$2.77) - 6*$9.70 commissions]
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $345.00): +$2,381.05
= ($345.00-$321.10)*100 - $8.95 commissions
Total Net Profit(Stock assigned at $345.00): +$5,824.85
= (+$3,443.80 +$0.00 +$2,381.05)
Absolute Return (Stock Assigned at $345.00): +18.1%
= +$5,824.85/$32,118.95
Annualized Return: +31.8%
= (+$5,824.85/$32,118.95)*(365/208 days)
2. Freeport McMoRan Copper and Gold Inc.(FCX) -- Closed
The transactions history was as follows:
01/28/2011 Sold 3 Freeport-McMoRan Copper and Gold Inc.(FCX) Feb2011 $110.00 Puts @ $6.35
Note: the price of FCX stock was $106.10 when these puts were sold.
The 100% cash-secured put position in Freeport McMoRan (FCX) ended out-of-the-money and was assigned for purchase. The stock underwent a 2-for-1 split since original sale of the three FCX puts at $110.00 strike price. So the assignment was for the purchase of 600 shares of FCX stock at half of the the original $110 strike price value which is $55.00.
03/17/2011 Sold 6 FCX Apr2011 $55.00 Calls @ $1.43
Note: The price of FCX was $52.15 when these call options were sold.
04/16/2011 Apr2011 FCX Options Expired.
Note: the price of FCX was $51.17 upon options expiration.
04/20/2011 Sold 6 FCX May2011 $55.00 Calls @ $1.95
Note: the price of FCX was $54.73 when these call options were sold.
05/11/2011 $150.00 Ex-Dividend ($.250 per share * 600 shares)
05/15/2011 Supplementary Dividend ($.50 per share) for shares of record on 5/15/2011.
05/21/2011 May2011 Options Expiration Date
05/27/2011 Sold 6 FCX Jun2011 $55.00 Calls @ $.44
Note: the price of FCX was $51.60 when the calls were sold.
06/18/2011 Jun2011 Options Expired
Note: the price of FCX was $47.93 upon options expiration.
06/21/2011 Sold 6 FCX Jul2011 $52.50 Calls @ $.52
Note: price of FCX stock was $49.16 when these options were sold.
07/16/2011 Jul2011 FCX Options Expired.
Note: the price of FCX was $55.34 upon options expiration.
The resulting overall performance (including commissions) for these Freeport-McMoRan Copper and Gold Inc.(FCX) transactions was as follows:
Stock Purchase Cost: $33,008.95
= ($110.00*300+$8.95 commission)
Net Profit:
(a) Options Income: +$4,219.85
= [300*$6.35 + 600*($1.43+$1.95+$.44+$.52) - 3*$11.20 - 4*$13.45 commissions]
(b) Dividend Income: +$450.00 [($.50 + $.25) * 600 shares]
(c) Capital Appreciation (Stock assigned at $52.50): -$1,508.95
= ($52.50-$55.00)*600 - $8.95 commissions
Total Net Profit(Stock assigned at $52.50): +$3,160.90
= (+$4,219.85 +$450.00 -$1,508.95)
Absolute Return (Stock Assigned at $52.50): +9.6%
= +$3,160.90/$33,008.95
Annualized Return: +20.7%
= (+$3,160.90/$33,008.95)*(365/169 days)
3. iShares MSCI South Korea ETF (EWY) -- Closed
The transactions history was as follows:
04/18/2011 Bought 600 EWY @ $64.17
04/19/2011 Sold 6 EWY May2011 $66.00 Calls @ $1.39
Note: the price of EWY was $65.20 when the calls were sold.
05/27/2011 Sold 6 EWY Jun2011 $67.00 Calls @ $.59
Note: the price of EWY was $64.84 when the calls were sold.
06/18/2011 Jun2011 Options Expired
Note: the price of EWY was $61.91 upon options expiration.
06/21/2011 Sold 6 EWY Jul2011 $65.00 Calls @ $.59
Note: price of EWY stock was $63.00 when these options were sold.
07/16/2011 Jul2011 EWY Options Expired.
Note: the price of EWY was $65.62 upon options expiration.
The resulting overall performance (including commissions) for these iShares MSCI South Korea ETF (EWY) transactions was as follows:
Stock Purchase Cost: $38,510.95
= ($64.17*600+$8.95 commission)
Net Profit:
(a) Options Income: +$1,501.65
= [600*($1.39+$.59+$.59) - 3*$13.45 commissions]
(b) Dividend Income: $0.00
(c) Capital Appreciation (Stock assigned at $65.00): +$87.05
= ($65.00-$64.84)*600 - $8.95 commissions
Total Net Profit (If stock assigned at $65.00): +$1,588.70
= (+$1,501.65 +$0.00 +$87.05)
Absolute Return (Stock assigned at $65.00 at expiration): +4.1%
= +$1,588.70/$38,510.95
Annualized Return: +16.9%
= (+$1,588.70/$38,510.95)*(365/89 days)
