The Covered Calls Advisor Portfolio (CCAP) contained nine covered calls positions with January 2012 expirations. On yesterday's options expiration Friday, all nine positions were in-the-money. As posted on this blog yesterday, three of these positions (iShares MSCI China ETF, iShares MSCI Emerging Markets ETF, and iShares MSCI South Korea ETF) were rolled up and out to Feb2012 covered calls.
Six covered calls positions (Citigroup, Halliburton, iShares MSCI Taiwan ETF, Morgan Stanley, Mylan Inc., and Peabody Energy) were in-the-money and the stocks were assigned (i.e. stock called away) upon options expiration yesterday. The detailed transactions history and financial results for these closed positions is as follows:
1. Citigroup Inc.(C) -- Closed
The transaction history is as follows:
10/26/2011 Sold 3 Citigroup, Inc.(C) Nov2011 $31.00 Put Options @ $1.96
Note: the price of Citi stock was $30.42 today when these puts were sold.
11/19/2011 Nov2011 Options Expired.
Note: the price of Citi stock was $26.28 upon options expiration.
11/30/2011 Sold 3 Dec2011 $27.00 call options @ $1.09
Note: the price of Citigroup stock was $26.61 when these options were sold.
12/17/2011 Dec2011 Options Expired.
Note: the price of Citigroup was $26.03 upon options expiration.
12/21/2011 Sold 3 Jan2012 $28.00 calls @$.99
Note: the price of Citi was $27.02 when these options were sold.
01/21/2012 Jan2012 options assigned and stock sold at $28.00.
Note: the price of Citi was $29.64 at options expiration.
The overall performance result(including commissions) for these Citigroup Inc.(C) transactions was as follows:
100% Cash-Secured Cost Basis: $9,300.00
= $31.00*300
Net Profit:
(a) Options Income: +$1,178.40
= (300*($1.96+$1.09+$.99) - 3*$11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $28.00): -$908.95
= ($28.00-$31.00)*300 - $8.95 commissions
Total Net Profit (Stock assigned at $28.00): +$269.45
= (+$1,178.40 +$0.00 -$908.95)
Absolute Return (Stock assigned at $28.00 at expiration): +2.9%
= +$269.45/$9,300.00
Annualized Return: +12.2%
= (+$269.45/$9,300.00)*(365/87 days)
2. Halliburton Co.(HAL) -- Closed
The transaction history is as follows:
10/26/2011 Sold 3 Halliburton Co.(HAL) Nov2011 $36.00 Put Options @ $2.06
Note: the price of HAL stock was $35.56 today when these puts were sold.
11/19/2011 Nov2011 Options Expired.
Note: the price of Halliburton stock was $35.96 upon options expiration.
11/30/2011 Ex-Dividend payment of $27.00 = $.09 * 300 shares
11/30/2011 Sold 3 Dec2011 $37.00 call options @ $1.05
Note: the price of Halliburton Co. stock was $35.99 when these options were sold.
12/17/2011 Dec2011 Options Expired.
Note: the price of Halliburton was $31.76 upon options expiration.
01/03/2012 Sold 3 Jan2012 $35.00 call options @ $1.06
Note: the price of Halliburton was $34.48 when these options were sold.
01/21/2012 Jan2012 options assigned and stock sold at $35.00.
Note: the price of Halliburton was $36.20 at options expiration.
The overall performance results(including commissions) for this Halliburton Co.(HAL) position was as follows:
100% Cash-Secured Cost Basis: $10,800.00
= $36.00*300
Net Profit:
(a) Options Income: +$1,217.40
= ($2.06 + $1.05 + $1.06)*300 shares - 3*$11.20 commissions
(b) Dividend Income: +$27.00 ($.09*300 shares)
(c) Capital Appreciation (HAL stock assigned at $35.00 at Jan2012 expiration):
-$308.95 = ($35.00-$36.00)*300 -$8.95 commissions
Total Net Profit(Stock assigned at $35.00): +$935.45
= (+$1,217.40 +$27.00 -$308.95)
Absolute Return (Stock assigned at $35.00): +8.7%
= +$935.45/$10,800.00
Annualized Return (Stock assigned at $35.00 at expiration): +36.3%
= (+$935.45/$10,800.00)*(365/87 days)
3. iShares MSCI Taiwan ETF (EWT) -- Closed
The transactions history is as follows:
07/18/2011 Bought 1,000 EWT @ $14.65
07/19/2011 Sold 10 EWT Aug2011 $15.00 Calls @ $.31
Note: The price of EWT was $14.85 today when the options were sold.
08/20/2011 Aug2011 Options Expired.
08/31/2011 Sold 10 EWT Sep2011 $14.00 Calls @$.29
Note: The price of EWT was $13.89 when these call options were sold.
09/17/2011 Sep2011 EWT options expired.
09/20/2011 Sold 10 EWT Oct2011 $13.00 Calls @ $.32
10/22/2011 Oct2011 options expired.
10/26/2011 Sold 10 EWT Nov2011 $13.00 Calls @ $.39
11/19/2011 Nov2011 EWT options expired.
11/30/2011 Sold 10 EWT Dec2011 $12.00 Calls @ $.29
12/17/2011 Dec2011 Options Expired.
Note: the price of EWT was $11.21 upon options expiration.
12/20/2011 Ex-Distribution $472.80 = $.4728 * 1,000 shares
01/03/2012 Sold 10 EWT Jan2012 $12.00 call options @ $.22
Note: the price of EWT was $11.87 when these options were sold.
01/21/2012 Jan2012 options assigned and stock sold at $12.00.
Note: the price of EWT was $12.46 at options expiration.
The overall performance results(including commissions) for these EWT transactions was as follows:
Stock Purchase Cost: $14,650.95
= ($14.65*1,000+$8.95 commission)
Net Profit:
(a) Options Income: +$1,721.30
= (1,000*($.31+$.29+$.32+$.39+$.29+$.22) - 6*$16.45 commissions)
(b) Dividend Income: +$472.80 = $.4728 * 1,000 shares
(c) Capital Appreciation (EWT assigned at $12.00): -$2,658.95
= ($12.00-$14.65)*1,000 - $8.95 commissions
Total Net Profit(EWT assigned at $12.00): -$464.85
= (+$1,721.30 +$472.80 -$2,658.95)
Absolute Return if Assigned at $12.00: -3.2%
= -$464.85/$14,650.95
Annualized Return If Assigned (ARIA) -6.2%
= (-$464.85/$14,650.95)*(365/187 days)
4. Morgan Stanley (MS) -- Closed
The transactions history is as follows:
10/26/2011 Sold 6 Morgan Stanley (MS) Nov2011 $17.00 Put Options @ $1.16
Note: the price of MS stock was $16.82 today when these puts were sold.
11/19/2011 Nov2011 MS put options exercised -- 600 shares MS purchased @ $17.00.
11/30/2011 Sold 6 MS Dec2011 $15.00 Calls @ $.44
Note: the price of MS was $14.18 today when these call options were sold.
12/17/2011 Dec2011 Options Expired.
Note: the price of Morgan Stanley was $14.98 upon options expiration.
12/21/2011 Sold 6 Jan2012 $16.00 calls @$.69
Note: the price of MS was $15.39 when these options were sold.
01/21/2012 Jan2012 MS options assigned and stock sold at $16.00.
Note: the price of MS was $18.39 at options expiration.
The overall performance results(including commissions) for this Morgan Stanley (MS) position was as follows:
100% Cash-Secured Cost Basis: $10,200.00
= $17.00*600
Net Profit:
(a) Options Income: +$1,333.65
= ($1.16+$.44+$.69)*600 shares - 3*$13.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If stock price unchanged at $15.39): -$974.95
= ($15.39-$17.00)*600 - $8.95 commissions
(c) Capital Appreciation (If MS stock assigned at $16.00 at Jan2012 expiration):
-$608.95 = ($16.00-$17.00)*600 - $8.95 commissions
Total Net Profit(If stock price unchanged at $15.39): +$358.70
= (+$1,333.65 +$0.00 -$974.95)
Total Net Profit(If stock price above $16.00 at Jan2012 options expiration): +$724.70
= (+$1,333.65 +$0.00 -$608.95)
1. Absolute Return if Unchanged at $15.39: +3.5%
= +$358.70/$10,200.00
Annualized Return If Unchanged (ARIU): +14.8%
= (+$358.70/$10,200.00)*(365/87 days)
2. Absolute Return (Stock price above $16.00 at Jan2012 options expiration): +7.1%
= +$724.70/$10,200.00
Annualized Return (Stock price above $16.00 at expiration): +29.8%
= (+$724.70/$10,200.00)*(365/87 days)
5. Mylan Inc.(MYL) -- Closed
The transaction history is as follows:
07/18/2011 Sold 5 Mylan Inc. (MYL) Aug2011 $23.00 Put Options @ $1.06
Note: the price of MYL stock was $22.98 today when these puts were sold.
08/20/2011 Aug2011 MYL options exercised and stock purchased at $23.00 per share.
08/22/2011 Sold 5 MYL Sep2011 $22.00 Calls @ $.46
09/17/2011 Sep2011 MYL options expired.
09/20/2011 Sold 5 MYL Oct2011 $22.00 Calls @ $.63
Note: The price of MYL was $20.48 when these call options were sold.
10/22/2011 Oct2011 options expired.
Note: the MYL price was $18.04 at option expiration.
10/24/2011 Sold 5 MYL Nov2011 $19.00 Call Options @ $.56
Note: the price of MYL was $18.08 when the options were sold.
11/19/2011 Nov2011 MYL options expired.
11/30/2011 Sold 5 MYL Jan2011 $20.00 Calls @ $1.11
Note: the price of MYL was $19.38 today when these call options were sold.
01/21/2012 Jan2012 MYL options assigned and stock sold at $20.00.
Note: the price of MYL was $21.56 at options expiration.
The overall performance results(including commissions) for these Mylan Inc. transactions was as follows:
Stock Purchase Cost: $11,508.95
= ($23.00*500+$8.95 commission)
Net Profit:
(a) Options Income: +$1,846.50
= 500*($1.06+$.46+$.63+$.56+$1.11) - 5*$12.70 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If MYL exercised at $20.00): -$1,508.95
= ($20.00-$23.00)*500 - $8.95 commissions
Total Net Profit(MYL assigned at $20.00): +$337.55
= (+$1,846.50 +$0.00 -$1,508.95)
Absolute Return (Stock Assigned at $20.00): +2.9%
= +$337.55/$11,508.95
Annualized Return: +5.7%
= (+$337.55/$11,508.95)*(365/187 days)
6. Peabody Energy Corp.(BTU) -- Closed
The transaction history is as follows:
09/19/2011 Bought 300 shares BTU at $44.208
09/19/2011 Sold 3 BTU Oct2011 $47 Calls @ $1.67
10/22/2011 Oct2011 options expired.
Note: the BTU price was $38.89 at option expiration.
10/24/2011 Sold 3 BTU Nov2011 $41.00 Call Options @ $1.85
Note: the price of BTU was $40.40 when the options were sold.
11/19/2011 Nov2011 BTU options expired.
11/30/2011 Sold 3 BTU Dec2011 $39.00 Calls @ $1.10
Note: the price of BTU was $37.90 today when these call options were sold.
12/17/2011 Dec2011 Options Expired.
Note: the price of BTU was $32.98 upon options expiration.
01/03/2012 Sold 3 BTU Jan2012 $35.00 call options @ $1.59
Note: the price of BTU was $35.34 when these options were sold.
01/21/2012 Jan2012 BTU options assigned and stock sold at $35.00.
Note: the price of BTU was $37.85 at options expiration.
The overall performance results(including commissions) for this Peabody Energy Corp.(BTU) position was as follows:
Stock Purchase Cost: $13,271.35
= ($44.208*300+$8.95 commission)
Net Profit:
(a) Options Income: +$1,818.20
= (300*($1.67+$1.85+$1.10+$1.59) - 4*$11.20 commissions)
(b) Dividend Income: $0.00
(c) Capital Appreciation (Stock assigned at $35.00): -$2,771.35
= ($35.00-$44.208)*300 - $8.95 commissions
Total Net Profit (Stock assigned at $35.00): -$953.15
= (+$1,818.20 +$0.00 -$2,771.35)
Absolute Return (BTU stock assigned at $35.00 at expiration): -7.2%
= -$953.15/$13,271.35
Annualized Return: -21.1%
= (-$953.15/$13,271.35)*(365/124 days)
