The Covered Calls Advisor Portfolio (CCAP) contained a total of thirteen covered calls positions with October 2011 expirations, with the following results:
- Seven covered calls positions in the CCAP (Alcoa Inc., Apple Inc., International Paper, iShares MSCI Emerging Markets ETF, iShares MSCI China ETF, Mylan Inc., and Peabody Energy Corp.) expired out-of-the-money. Decisions will be made to either sell these equities, or to keep them and sell calls to establish November 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.
- Six covered calls positions (General Motors Co., iShares MSCI South Korea ETF, Microsoft Corp., Morgan Stanley, ProShares UltraShort Barclays 20+ Year Treasury ETF, and Valero Energy Co.) were in-the-money and the stocks were assigned (i.e. stock called away) upon option expiration last Friday. The detailed history for these closed positions is as follows:
1. General Motors Co.(GM) -- Closed
The transactions history is as follows:
07/20/2011 Bought 300 GM @ $29.32
07/20/2011 Sold 3 GM Aug2011 $30.00 Calls @ $.79
Note: the price of GM was $29.45 when the call options were sold.
08/20/2011 Aug2011 GM options expired.
08/22/2011 Sold 3 GM Sep2011 $24.00 Calls @ $.65
09/17/2011 Sep2011 GM options expired.
09/20/2011 Sold 3 GM Oct2011 $24.00 Calls @ $.57
Note: The price of GM was $22.80 when the options were sold.
10/22/2011 Sold 300 GM shares at $24.00 at Oct2011 expiration.
Note: The price of GM was $24.35 when the call options were assigned.
The performance results(including commissions) for these GM transactions are as follows:
Stock Purchase Cost: $8,804.95
= ($29.32*300+$8.95 commission)
Net Profit:
(a) Options Income: +$537.90
= (300*($.70+$.65+$.57) - 3*$12.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $24.00 at expiration): -$1,604.95
= ($24.00-$29.32)*300 - $8.95 commissions
Total Net Profit (Stock assigned at $24.00): -$1,067.05
= (+$537.90 +$0.00 -$1,604.95)
Absolute Return (Stock assigned at $24.00 strike price): -12.1%
= -$1,067.05/$8,804.95
Annualized Return: -71.3%
= (-$1,067.05/$8,804.95)*(365/62 days)
2. iShares MSCI South Korea ETF (EWY) -- Closed
The transactions history is as follows:
07/18/2011 Bought 500 EWY @ $64.76
07/18/2011 Sold 5 EWY Aug2011 $66.00 Calls @ $1.45
Note: The price of EWY was $64.80 when the options were sold.
08/20/2011 Aug2011 options expired.
08/29/2011 Sold 5 EWY Sep2011 $56.00 Calls @ $1.36
09/17/2011 Sep2011 EWY options expired.
09/20/2011 Sold 5 EWY Oct2011 $50.00 Calls @ $3.74
10/22/2011 Sold 500 EWY shares at $50.00 at Oct2011 expiration.
Note: The price of EWT was $52.98 when the call options were assigned.
The performance results(including commissions) for these EWY transactions are as follows:
Stock Purchase Cost: $32,388.95
= ($64.76*500+$8.95 commission)
Net Profit:
(a) Options Income: +$3,236.90
= (500*($1.45+$1.36+$3.74) - 3*$12.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $50.00 at expiration): -$7,388.95
= ($50.00-$64.76)*500 - $8.95 commissions
Total Net Profit (Stock assigned at $50.00): -$4,152.05
= (+$3,236.90 +$0.00 -$7,388.95)
Absolute Return (Stock assigned at $50.00 strike price): -12.8%
= -$4,152.05/$32,388.95
Annualized Return: -48.7%
= (-$4,152.05/$32,388.95)*(365/96 days)
3. Microsoft Corp.(MSFT) -- Closed
The transactions history is as follows:
01/24/2011 Bought 700 MSFT @ $28.15
02/17/2011 Ex-Dividend Date $112.00 = $.16 per share x 700 shares
01/24/2011 Sell-to-Open(STO) 7 MSFT Feb2011 $29.00 CallS @ $.40
02/19/2011 Feb 2011 Options Expired
03/21/2011 Sell-to-Open(STO) 7 MSFT Apr2011 $26.00 Calls @ $.31
Note: the price of MSFT was $25.47 today when the options were sold.
04/16/2011 Apr2011 MSFT options expired.
04/26/2011 Sold 7 MSFT May2011 $26.00 Calls @ $.66
Note: The price of MSFT was $26.06 when these call options were sold.
05/17/2011 Ex-Dividend Date $112.00 = $.16 per share x 700 shares
05/31/2011 Sold 7 MSFT Jul2011 $26.00 Calls @ $.29
Note: The price of MSFT was $25.05 when these call options were sold.
07/14/2011 Buy-to-Close (BTC) 7 MSFT Jul2011 $26.00 Call Options @ $.50
07/14/2011 Sell-to-Open (STO) 7 MSFT Aug2011 $27.00 Call Options @ $.56
Note: The price of MSFT was $26.52 when these call options were sold.
08/17/2011 Ex-Dividend Date $112.00 = $.16 per share x 700 shares
08/20/2011 Aug2011 options expired.
08/29/2011 Sold 7 MSFT Sep2011 $26.00 Calls @ $.58
09/17/2011 Sep2011 MSFT options expired.
09/20/2011 Sold 7 MSFT Oct2011 $26.00 Calls @ $.41
10/22/2011 10/22/2011 Sold 700 MSFT shares at $26.00 at Oct2011 expiration.
Note: The price of MSFT was $27.16 when the call options were assigned.
The performance results(including commissions) for these MSFT transactions are as follows:
Stock Purchase Cost: $19,713.95
= ($28.15*700+$8.95 commission)
Net Profit:
(a) Options Income: +$2,483.40
= (700*($.40+$.31+$.66+$.29+$.50+$56+$.58+$.41) - 8*$14.20 commissions)
(b) Dividend Income: +$336.00 ($.16*700 shares * 3 dividend payouts)
(c) Capital Appreciation (Stock assigned at $26.00 at expiration): -$1,513.95
= ($26.00-$28.15)*700 - $8.95 commissions
Total Net Profit (Stock assigned at $26.00): +$1,305.45
= (+$2,483.40 +$336.00 -$1,513.95)
Absolute Return (Stock assigned at $26.00 strike price): +6.6%
= +$1,305.45/$19,713.95
Annualized Return: +8.9%
= (-$4,152.05/$32,388.95)*(365/271 days)
4. Morgan Stanley (MS) -- Closed
The transactions history is as follows:
06/03/2011 Bought 300 MS @ $22.988
06/03/2011 Sold 3 MS Jul2011 $25.00 Calls @ $.26
Note: the price of MS was $23.14 when the call options were sold.
07/16/2011 Jul2011 MS options expired.
07/18/2011 Sold 3 MS Sep2011 $22.00 Calls @$.66
Note: The price of MS was $20.82 when these call options were sold.
07/27/2011 Ex-Dividend of $.05 per share
09/17/2011 Sep2011 MS options expired.
09/20/2011 Sold 3 MS Oct2011 $17.00 Calls @ $.42
Note: The price of MS was $15.41 when these call options were sold.
10/22/2011 Sold 300 MS shares at $17.00 at Oct2011 expiration.
Note: The price of MS was $17.02 when the call options were assigned.
Two possible overall performance results(including commissions) for the Morgan Stanley transactions would be as follows:
Stock Purchase Cost: $6,905.35
= ($22.988*300+$8.95 commission)
Net Profit:
(a) Options Income: +$276.40
= 300*($.26+$.66+$.42) - 3*$11.20 commissions
(b) Dividend Income: +$15.00 = $.05 * 300 shares
(c) Capital Appreciation (If MS exercised at $17.00): -$1,805.35
= ($17.00-$22.988)*300 - $8.95 commissions
Total Net Profit(MS assigned at $17.00): -$1,513.95
= (+$276.40 +$15.00 -$1,805.35)
Absolute Return (Stock Assigned at $17.00): -21.9%
= -$1,513.95/$6,905.35
Annualized Return: -56.8%
= (-$1,513.95/$6,905.35)*(365/141 days)
5. ProShares UltraShort Barclays 20+ Year Treasury ETF (TBT) -- Closed
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.
07/16/2011 Jul2011 TBT options expired.
07/21/2011 Sold 2 TBT Aug2011 $34.00 Calls @$.77
Note: The price of TBT was $33.28 when these call options were sold.
08/20/2011 Aug2011 options expired.
08/29/2011 Sold 2 TBT Sep2011 $25.00 Calls @ $1.58
09/17/2011 Sep2011 TBT options expired.
09/20/2011 Sold 2 TBT Oct2011 $21.00 Calls @ $1.67
10/22/2011 10/22/2011 Sold 200 TBT shares at $21.00 at Oct2011 expiration.
Note: The price of TBT was $21.83 when the call options were assigned.
The performance results(including commissions) for these TBT transactions are as follows:
Stock Purchase Cost: $7,158.95
= ($35.75*200+$8.95 commission)
Net Profit:
(a) Options Income: +$933.10
= (200*($.36+$.39+$.77+$1.58+$1.67) - 2*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $21.00 at expiration): -$2,958.95
= ($21.00-$35.75)*200 - $8.95 commissions
Total Net Profit (Stock assigned at $21.00): -$2,025.85
= (+$933.10 +$0.00 -$2,958.95)
Absolute Return (Stock assigned at $21.00 strike price): -59.7%
= -$2,025.85/$7,158.95
Annualized Return: +8.9%
= (-$2,025.85/$7,158.95)*(365/173 days)
6. Valero Energy Corp.(VLO) -- Closed
The transactions history is as follows:
09/20/2011 Bought 300 VLO @ $21.30
09/20/2011 Sold 3 VLO Oct2011 $23.00 Calls @ $.62
10/22/2011 Sold 300 VLO shares at $23.00 at Oct2011 expiration.
Note: The price of VLO was $23.68 when the call options were assigned.
The performance results(including commissions) for these VLO transactions are as follows:
Stock Purchase Cost: $6,398.95
= ($21.30*300+$8.95 commission)
Net Profit:
(a) Options Income: +$174.80
= ($.62*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (VLO assigned $23.00 at Oct2011 expiration): +$501.05
+($23.00-$21.30)*300 - $8.95 commissions
Total Net Profit(VLO stock assigned at $23.00 at Oct2011 options expiration): +$675.85
= (+$174.80 +$0.00 +$501.05)
Absolute Return (Stock assigned at $23.00 at Oct2011 options expiration):
+10.6% = +$675.85/$6,398.95
Annualized Return: +120.5%
= (+$675.85/$6,398.95)*(365/32 days)
