The Covered Calls Advisor Portfolio (CCAP) contained ten covered calls positions with March 2012 expirations. A summary of the results were as follows:
- Five positions (Halliburton, iPath S&P 500 VIX Short-Term Futures ETN, iShares MSCI China ETF, Mylan Inc., and Rio Tinto Ltd.) expired out-of-the-money. Decisions will be made to either sell these equities, or to keep them and sell calls to establish April 2012 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.
- Five positions (Apple Inc., iShares MSCI Emerging Markets ETF, iShares MSCI South Korea ETF, Morgan Stanley, and ProShares UltraShort 20+ Years Treasury Bonds ETF) were in-the-money upon Mar2012 options expiration. These equities were assigned (i.e. equities called away).
The annualized return-on-investment financial results for these closed positions is:
Apple Inc. -- +52.6%
iShares MSCI Emerging Markets ETF -- -1.2%
iShares MSCI South Korea ETF -- +35.9%
Morgan Stanley -- +64.2%
ProShares UltraShort 20+ Years Treasury Bonds ETF -- +41.1%
The detailed transactions history and results for these five positions are as follows:
1. Apple Inc.(AAPL) -- Closed
The transaction history is as follows:
09/19/2011 Bought 100 shares AAPL at $396.544
09/19/2011 Sold 1 AAPL Oct2011 $410 Call Option @ $10.15
10/22/2011 Oct2011 option expired.
Note: the AAPL price was $392.87 at option expiration.
10/24/2011 Sold 1 AAPL Nov2011 $410 Call Option @ $7.20
Note: the price of AAPL was $399.10 when the option was sold.
11/19/2011 Nov2011 AAPL options expired.
11/30/2011 Sold 1 AAPL Dec2011 $400.00 Call @ $4.40
Note: the price of AAPL was $392.94 today when this call option was sold.
12/17/2011 Dec2011 AAPL options expired.
Note: the price of AAPL was $381.02 upon Dec2012 options expiration.
2/1/2012 Sold 1 AAPL Feb2012 $465 Call @ $3.85
Note: the price of AAPL was $456.91 today when this call option was sold.
02/17/2012 Bought-to-Close 1 AAPL Feb2012 $465.00 Call @ $37.05
02/17/2012 Sold-to-Open 1 AAPL Mar2012 $485.00 Call @ $26.95
Note: the price of AAPL was $502.03 when these transactions were made.
03/18/2012 Mar2012 Options Expired.
Note: the price of AAPL was $585.57 upon options expiration.
The performance result(including commissions) for this AAPL position was as follows:
Stock Purchase Cost: $39,663.35
= ($396.544*100+$8.95 commission)
Net Profit:
(a) Options Income: +$1,501.50
= (100*($10.15+$7.20+$4.40+$3.85-$37.05+$26.95) - 5*$9.70 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Stock assigned at $485.00 at expiration): +$8,836.65
= ($485.00-$396.544)*100 - $8.95 commissions
Total Net Profit (Stock assigned at $485.00): +$10,338.15
= (+$1,501.50 +$0.00 +$8,836.65)
Absolute Return (Stock assigned at Mar2012 options expiration): +26.1%
= +$10,338.15/$39,663.35
Annualized Return: +52.6%
= (+$10,338.15/$39,663.35)*(365/181 days)
2. iShares MSCI Emerging Markets ETF (EEM) -- Closed
The transactions history was 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.
6/22/2011 Distribution Income $.46092 per share.
06/28/2011 Sold 5 EEM Jul2011 $47.00 Calls @ $.62
Note: price of EEM was $46.42 when these options were sold.
07/16/2011 Jul2011 EEM options expired.
07/18/2011 Sold 5 EEM Aug2011 $47.00 Calls @$.99
Note: The price of EEM was $46.55 when these call options were sold.
08/20/2011 Aug2011 EEM options expired.
08/22/2011 Sold 5 EEM Sep2011 $42.00 Calls @ $.71
09/17/2011 Sep2011 EEM options expired.
09/20/2011 Sold 5 EEM Oct2011 $42.00 Calls @ $.63
Note: The price of EEM was $39.68 when these call options were sold.
10/22/2011 Oct2011 options expired.
10/26/2011 Sold 5 EEM Nov2011 $41.00 Calls @ $.78
11/19/2011 Nov2011 EEM options expired.
11/30/2011 Sold 5 EEM Dec2011 $41.00 Calls @ $.59
Note: the price of EEM was $39.71 today when these call options were sold.
12/20/2011 Ex-Distribution $173.48 = $.34696 * 500 shares
01/20/2012 Bought-to-Close 5 EEM Jan2012 $39.00 Calls @ $2.43
Note: the price of EEM was $41.41 when these call options were bought.
01/20/2012 Sold 5 EEM Feb2012 $42.00 Calls @ $.80
Note: the price of EEM was $41.50 today when these call options were sold.
02/17/2012 Bought-to-Close 5 EEM Feb2012 $42.00 Calls @ $1.97
Note: the price of EEM was $43.95 when these call options were bought-to-close.
02/20/2012 Sold 5 EEM Feb2012 $43.00 Calls @ $1.83
Note: the price of EEM was $44.02 when these call options were sold.
03/18/2012 Mar2012 Options Expired.
Note: the price of EEM was $44.09 upon options expiration.
The overall performance result(including commissions) for these iShares MSCI Emerging Markets ETF (EEM) transactions was as follows:
Stock Purchase Cost: $23,913.95
= ($47.81*500+$8.95 commission)
Net Profit:
(a) Options Income: +$1,725.30
= [500*($.83 +$.35+$.62+$.99+$.71+$.63+$.78+$.59-$2.43+$.80-$1.97+$1.83) - 11*$12.70 commissions]
(b) Distribution Income: $403.94 = ($.46092+$.34696) * 500 shares
(c) Capital Appreciation (Stock assigned at $43.00): -$2,396.05
= ($43.00-$47.81)*500 - $8.95 commissions
Total Net Profit (EEM assigned at $43.00): -$266.81
= (+$1,725.30 +$403.94 -$2,396.05)
Absolute Return (EEM assigned at $43.00 at expiration): -1.1%
= -$266.81/$23,913.95
Annualized Return: -1.2%
= (-$266.81/$23,913.95)*(365/335 days)
3. iShares MSCI South Korea ETF (EWY) -- Closed
The transactions history was as follows:
10/25/2011 Bought 800 EWY @ $54.62
10/25/2011 Sold 8 EWY Nov2011 $54.00 Calls @ $2.59
Note: these call options were sold with the price of EWY at $54.62
11/19/2011 Nov2011 EWY options expired.
11/30/2011 Sold 8 EWY Dec2011 $56.00 Calls @ $1.48
Note: the price of EWY was $55.38 today when these call options were sold.
12/20/2011 Ex-Distribution $298.41 = $.37301 * 800 shares
01/20/2012 Bought-to-Close 8 EWY Jan2012 $55.00 Calls @ $1.75
Note: the price of EWY was $56.73 when these call options were bought.
01/20/2012 Sold 8 EWY Feb2012 $57.00 Calls @ $1.50
Note: the price of EWY was $56.73 when these call options were sold.
02/17/2012 Bought-to-Close 8 EWY Feb2012 $57.00 Calls @ $2.48
Note: the price of EWY was $59.46 when these call options were bought-to-close.
02/20/2012 Sold 8 EWY Mar2012 $59.00 Calls @ $1.85
Note: the price of EWY was $59.32 when these call options were sold.
03/18/2012 Mar2012 Options Expired.
Note: the price of EWY was $60.46 upon options expiration.
The overall performance result(including commissions) for the EWY position was as follows:
Stock Purchase Cost: $43,704.95
= ($54.62*800+$8.95 commission)
Net Profit:
(a) Options Income: +$2,477.25
= (800*($2.59+$1.48-$1.75+$1.50-$2.48+$1.85) - 5*$14.95 commissions)
(b) Dividend Income: +$298.41 = $.37301* 800 shares
(c) Capital Appreciation (EWY assigned at $59.00): +$3,495.05
= ($59.00-$54.62)*800 - $8.95 commissions
Total Net Profit (EWY assigned at $59.00): +$6,270.71
= (+$2,477.25 +$298.41 +$3,495.05)
Absolute Return -- EWY assigned at $59.00: +14.3%
= +$6,270.71/$43,704.95
Annualized Return: +35.9%
= (+$6,270.71/$43,704.95)*(365/146 days)
4. Morgan Stanley (MS) -- Closed
The transactions history was as follows:
03/06/2012 Bought 500 MS @ $17.35
03/06/2012 Sold 5 MS Mar2012 $17.00 Calls @ $.76
03/18/2012 Mar2012 Options Expired.
Note: the price of MS was $19.53 upon options expiration.
The overall performance result(including commissions) for this Morgan Stanley position was as follows:
Stock Purchase Cost: $8,683.95
= ($17.35*500+$8.95 commission)
Net Profit:
(a) Options Income: +$367.30
= 500*$.76 - $12.70 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (MS exercised at $17.00): -$183.95
= ($17.00-$17.35)*500 - $8.95 commissions
Total Net Profit(MS assigned at $17.00): +$183.35
= (+$367.30 +$0.00 -$183.95)
Absolute Return (Stock assigned at $17.00): +2.1%
= +$183.35/$8,683.95
Annualized Return: +64.2%
= (+$183.35/$8,683.95)*(365/12 days)
5. ProShares UltraShort 20+ Years Treasury Bonds ETF (TBT) -- Closed
The transactions history was as follows:
02/16/2012 Sold 3 ProShares UltraShort 20+ Year Treasury ETF (TBT) Mar2012 $19.00 Put Options @ $.70
Note: the price of TBT was $18.94 today when these Puts were sold.
03/18/2012 Mar2012 Options Expired.
Note: the price of TBT was $20.83 upon options expiration.
The performance result(including commissions) for the TBT transactions was as follows:
100% Cash-Secured Cost Basis: $5,700.00
= $19.00*300
Net Profit:
(a) Options Income: +$198.80
= ($.70*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (TBT above $19.00 at Mar2012 expiration): +$0.00
= ($19.00-$19.00)*300
Total Net Profit(TBT above $19.00 at Mar2012 options expiration): +$198.80
= (+$198.80 +$0.00 +$0.00)
Absolute Return (TBT above $19.00 at Mar2012 options expiration and Put options thus expire worthless): +3.5%
= +$198.80/$5,700.00
Annualized Return: +41.1%
= (+$198.80/$5,700.00)*(365/31 days)
