The Covered Calls Advisor Portfolio (CCAP) contained eleven covered calls positions with February 2012 expirations. A summary of the results were as follows:
- As posted on this blog two days ago on expiration Friday, two in-the-money positions (Apple Inc. and iShares MSCI China ETF) were rolled out to Mar2012 covered calls.
- Two positions (Valero Energy Corp. and Xilinx Inc.) were closed earlier this month prior to the options expiration date because of early assignment.
- Two short options (iShares MSCI Emerging Markets ETF and iShares MSCI South Korea ETF) were bought-to-close on options expiration Friday. The long positions in these two underlying equities remain and Mar2012 options will be sold early this week as continuation transactions to re-establish Mar2012 covered calls positions and to continue the investments in these ETFs.
- One position in ProShares UltraShort S&P 500 ETF expired out-of-the-money. A decision will be made early this week as to which Mar2012 strike price will be sold to re-establish covered calls positions against this SDS equity. The related transaction will be posted on this blog site on the same day the transaction occurs.
- Four positions (Hartford Financial Services Group Inc., Market Vectors Gold Miners ETF, Mylan Inc., and ProShares UltraShort 20+ Years Treasury ETF) were in-the-money upon Feb2012 options expiration; so the equities were assigned (i.e. equities called away). The annualized return-on-investment financial results for these closed positions is:
Hartford Financial Services Group Inc. -- +111.8%
Market Vectors Gold Miners ETF -- +41.6%
Mylan Inc. -- +30.9%
ProShares UltraShort 20+ Years Treasury ETF -- +87.7%
The detailed transactions history and results for these four positions are as follows:
1. Hartford Financial Services Group Inc.(HIG) -- Closed
The transaction history was as follows:
01/30/2012 Sold 3 Hartford Financial Services Group Inc.(HIG) Feb2012 $18.00 Put Options @ $1.14
Note: the price of The Hartford was $17.28 today when these Puts were sold.
02/19/2012 Feb2012 Options Expired.
Note: the price of HIG was $21.65 upon options expiration.
The overall performance result (including commissions) for the Hartford Financial Services Group Inc.(HIG) transactions was as follows:
100% Cash-Secured Cost Basis: $5,400.00
= $18.00*300
Net Profit:
(a) Options Income: +$330.80
= ($1.14*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (HIG price above $18.00 at Feb2012 expiration): +$0.00
= ($18.00-$18.00)*300
Total Net Profit(HIG stock above $18.00 at Feb2012 options expiration): +$330.80
= (+$330.80 +$0.00 +$0.00)
Absolute Return (HIG above $18.00 at Feb2012 options expiration and Put options thus expire worthless): +6.1%
= +$330.80/$5,400.00
Annualized Return: +111.8%
= (+$330.80/$5,400.00)*(365/20 days)
2. Market Vectors Gold Miners ETF (GDX) -- Closed
The transaction history was as follows:
01/24/2012 Sold 3 Market Vectors Gold Miners ETF (GDX) Feb2012 $52.00 Put Options @ $1.58
Note: the price of GDX was $51.99 today when these puts were sold.
02/19/2012 Feb2012 Options Expired.
Note: the price of GDX was $54.15 upon options expiration.
The overall performance result (including commissions) for the Market Vectors Gold Miners ETF (GDX) transactions was as follows:
100% Cash-Secured Cost Basis: $15,600.00
= $52.00*300
Net Profit:
(a) Options Income: +$462.80
= ($1.58*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (GDX price above $52.00 at Feb2012 expiration): +$0.00
= ($52.00-$52.00)*300
Total Net Profit(GDX above $52.00 at Feb2012 options expiration): +$462.80
= (+$462.80 +$0.00 -$5.95)
Absolute Return (GDX above $52.00 at Feb2012 options expiration and put options thus expire worthless): +3.0%
= +$462.80/$15,600.00
Annualized Return (If stock price above $22.00 at expiration): +41.6%
= (+$462.80/$15,600.00)*(365/26 days)
3. Mylan Inc.(MYL) -- Closed
The transaction history was as follows:
01/27/2012 Sold 7 Mylan Inc. (MYL) Feb2012 $20.00 Put Options @ $.41
Note: the price of MYL stock was $20.92 today when these puts were sold.
02/19/2012 Feb2012 Options Expired.
Note: the price of MYL was $23.42 upon options expiration.
The overall performance result (including commissions) for the Mylan Inc.(MYL) transactions was as follows:
100% Cash-Secured Cost Basis: $14,000.00
= $20.00*700
Net Profit:
(a) Options Income: +$272.80
= ($.41*700 shares) - $14.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (MYL stock above $20.00 at Feb2012 expiration): +$0.00
= ($20.00-$20.00)
Total Net Profit(Stock price above $20.00 at Feb2012 options expiration): +$272.80
= (+$272.80 +$0.00 +$0.00)
Absolute Return (If stock price above $20.00 at Feb2012 options expiration and put options thus expire worthless): +1.9%
= +$272.80/$14,000.00
Annualized Return (If stock price above $23.00 at expiration): +30.9%
= (+$272.80/$14,000.00)*(365/23 days)
4. ProShares UltraShort 20+ Treasury ETF (TBT) -- Closed
The transaction history was as follows:
01/30/2012 Bought 300 TBT @ $18.34
01/30/2012 Sold 3 TBT Feb2012 $19.00 Calls @ $.29
Note: the price of TBT was $18.34 when these call options were sold.
02/19/2012 Feb2012 Options Expired.
Note: the price of TBT was $19.21 upon options expiration.
The overall performance result (including commissions) for the ProShares UltraShort 20+ Treasury ETF (TBT) transactions was as follows:
Stock Purchase Cost: $5,510.95
= ($18.34*300+$8.95 commission)
Net Profit:
(a) Options Income: +$75.80
= ($.29*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (TBT above $19.00 at Feb2012 expiration): +$189.05
+($19.00-$18.34)*300 - $8.95 commissions
Total Net Profit(TBT above $19.00 at Feb2012 options expiration): +$264.85
= (+$75.80 +$0.00 +$189.05)
Absolute Return (TBT price above $19.00 at Feb2012 options expiration): +4.8%
= +$264.85/$5,510.95
Annualized Return (If TBT above $19.00 at expiration): +87.7%
= (+$264.85/$5,510.95)*(365/20 days)
