The Covered Calls Advisor Portfolio (CCAP) contained eleven covered calls positions with September 2012 expirations. A summary of the results were as follows:
- Two positions (iShares MSCI China ETF and iShares MSCI South Korea ETF) were in-the-money just prior to options expiration this past Friday and the Covered Calls Advisor decided to roll-out to Oct2012 covered calls positions. The details of these roll-out transactions and their financial results were posted on this blog on Friday.
- The remaining nine positions (Bank of America Corp., General Motors, Market Vectors Russia ETF, McDermott International, Morgan Stanley, Mylan Inc., Occidental Petroleum, United Continental Holdings, and VALE SA ADR) were closed out upon Sep2012 options expiration. The options expired and the accompanying equities were assigned (i.e. equities called away) at their respective strike prices.
With the cash available from the closing of these positions, the Covered Calls Advisor will establish new positions this week and will post them on this blog the same day that they occur.
The annualized return-on-investment financial results for these nine closed positions are:
Bank of America Corp. = +39.7%
General Motors Co. = +42.3%
Market Vectors Russia ETF = +38.1%
McDermott International Inc. = +62.8%
Morgan Stanley = +52.5%
Mylan Inc. = +11.8%
Occidental Petroleum Corp. = +21.4%
United Continental Holdings Inc. = +40.5%
VALE SA ADR = +24.8%
The detailed transactions history and results for these nine positions are as follows:
1. Bank of America Corp. (BAC) -- Closed
The transactions history is as follows:
07/30/2012 Bought 1,000 BAC shares @ $7.29
08/01/2012 Sold 10 BAC Aug2012 $7.00 Call Options @ $.44
Note: the price of BAC was $7.34 today when these options were sold.
08/17/2012 Bought-to-Close 10 BAC Aug2012 $7.00 call options @ $1.01
Note: BAC was trading at $8.01 when this transaction occurred.
08/20/2012 Sold 10 BAC Sep2012 $8.00 Call Options @ $.30
Note: BAC was trading at $8.05 when this transaction occurred.
09/21/2012 Sep012 $8.00 options expired and 1,000 BAC shares assigned (called away)at $8.00
Note: the price of BAC stock was $9.11 upon options expiration.
The overall performance result (including commissions) for this Bank of America (BAC) position was as follows:
Stock Purchase Cost: $7,281.05
= ($7.29*1,000+$8.95 commission)
Net Profit:
(a) Options Income: -$272.90
= ($.44-$1.01+$.30)*1,000 shares - 2*$16.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (BAC assigned at $8.00 upon expiration): +$701.05
=+($8.00-$7.29)*1,000 - $8.95 commissions
Total Net Profit (BAC assigned at $8.00 at Sep2012 expiration): +$428.15
= (-$272.90 +$0.00 +$701.05)
Absolute Return (BAC assigned at $8.00 at Sep2012 expiration): +5.9%
= +$428.15/$7,281.05
Annualized Return : +39.7%
= (+$428.15/$7,281.05)*(365/54 days)
2. General Motors Co. (GM) -- Closed
The transactions are as follows: 09/04/2012 Bought 500 GM shares @ $21.20
09/04/2012 Sold 5 GM Sep2012 $21.00 Call Options @ $.71
Note: the price of GM shares was $21.24 today when these options were sold.
09/21/2012 Sep012 $21.00 options expired and 500 GM shares assigned (called away)at $21.00
Note: the price of GM stock was $24.80 upon options expiration.
The overall performance result (including commissions) for this General Motors Co. (GM) covered calls position was as follows:
Stock Purchase Cost: $10,608.95
= ($21.20*500+$8.95 commission)
Net Profit:
(a) Options Income: +$342.30
= ($.71 X 500 shares) - $12.70 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (GM assigned at $21.00 upon expiration): -$108.95
=+($21.00-$21.20)*500 - $8.95 commissions
Total Net Profit (GM assigned at $21.00 at Sep2012 expiration): +$233.35
= (+$342.30 +$0.00 -$108.95)
Absolute Return (If GM assigned at $21.00 at Sep2012 expiration): +2.2%
= +$233.35/$10,608.95
Annualized Return: +42.3%
= (+$233.35/$10,608.95)*(365/19 days)
3. Market Vectors Russia ETF -- Closed
The transactions history for this Market Vectors Russia ETF (RSX) covered calls position is as follows: 07/30/2012 Bought 600 RSX shares @ $26.59
08/01/2012 Sold 6 RSX Aug2012 $27.00 Call Options @ $.55
Note: the price of RSX was $26.70 today when these options were sold.
08/17/2012 Bought-to-Close 6 RSX Aug2012 $27.00 Calls at $.85
Note: this was done with the price of RSX at $27.84
08/17/2012 Sold-to-Open 6 RSX Sep2012 $27.00 call options at $1.45
Note: the price of RSX was $27.88 when these Sep2012 call options were sold.
09/21/2012 Sep012 $27.00 options expired and 600 RSX shares assigned (called away)at $27.00
Note: the price of RSX stock was $29.73 upon options expiration.
The overall performance result (including commissions) for this Market Vectors Russia ETF (RSX) covered calls position is as follows:
Stock Purchase Cost: $15,962.95
= ($26.59*600+$8.95 commission)
Net Profit:
(a) Options Income: +$663.10
= ($.55-$.85+$1.45)*600 shares - 2*$13.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (RSX assigned at $27.00): +$237.05
= ($27.00-$26.59)*600 - $8.95 commissions
Total Net Profit(RSX assigned at $27.00): +$900.15
= (+$663.10 +$0.00 +$237.05)
Absolute Return (RSX assigned at $27.00): +5.6%
= +$900.15/$15,962.95
Annualized Return: +38.1%
= (+$900.15/$15,962.95)*(365/54 days)
4. McDermott International Inc. -- Closed
The transactions history for this MDR position is as follows:
08/01/2012 Bought 600 MDR @ $11.56
08/01/2012 Sold 6 MDR Aug2012 $12.00 Calls @ $.55
08/17/2012 MDR Aug2012 $12.00 Call Options expired.
Note: the price of MDR stock was $11.75 upon options expiration.
08/20/2012 Sold 6 MDR Sep2012 $12.00 Calls @ $.45
Note: the price of MDR was $11.76 when these options were sold.
09/21/2012 Sep012 $12.00 options expired and 600 MDR shares assigned (called away)at $12.00
Note: the price of MDR stock was $12.70 upon options expiration.
The overall performance result (including commissions) for this McDermott position was as follows: Stock Purchase Cost: $9,256.95
= ($11.56*600+$8.95 commission)
Net Profit:
(a) Options Income: +$573.10
= 600 shares*($.55+$.45) - 2*$13.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (MDR assigned at $12.00): +$255.05
= ($12.00-$11.56)*600 - $8.95 commissions
Total Net Profit (MDR assigned at $12.00 upon Sep2012 expiration): +$828.15
= (+$573.10 +$0.00 +$255.05)
Absolute Return (MDR assigned at $12.00): +8.9%
= +$828.15/$9,256.95
Annualized Return: +62.8%
= (+$828.15/$9,256.95)*(365/52 days)
5. Morgan Stanley -- Closed
The transactions history for this Morgan Stanley (MS) covered calls position is as follows:
07/31/2012 Bought 600 MS @ $13.63 07/31/2012
Sold 6 MS Aug2012 $14.00 Calls @ $.35
08/17/2012 Bought-to-Close 6 MS Aug2012 $14.00 Calls at $.58
Note: this was done with the price of MS at $14.57
08/17/2012 Sold-to-Open 6 MS Sep2012 $14.00 call options at $.96
09/21/2012 Sep012 $14.00 options expired and 600 MS shares assigned (called away)at $14.00
Note: the price of MS stock was $17.08 upon options expiration.
The overall performance result (including commissions) for this Morgan Stanley covered calls position was as follows: Stock Purchase Cost: $8,186.95
= ($13.63*600+$8.95 commission)
Net Profit:
(a) Options Income: +$411.10
= ($.35-$.58+$.96)*600 shares - 2*$13.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (MS assigned at $14.00): +$213.05
= ($14.00-$13.63)*600 - $8.95 commissions
Total Net Profit (MS assigned at $14.00 at Sep2012 options expiration): +$624.15
= (+$411.10 +$0.00 +$213.05)
Absolute Return (MS assigned at $14.00): +7.6%
= +$624.15/$8,186.95
Annualized Return: +52.5%
= (+$624.15/$8,186.95)*(365/53 days)
6. Mylan Inc. -- Closed
The transactions history for this Mylan Inc.(MYL) covered calls position is as follows: 03/08/2012 Bought 500 Mylan Inc. Shares @ $22.51
03/08/2012 Sold 5 MYL Mar2012 $23.00 Calls @ $.26
Note: the price of Mylan was $22.75 today when the calls were sold.
03/18/2012 Mar2012 options expired.
03/19/2012 Sold 5 MYL Apr2012 $23.00 Calls @ $.47
Note: the price of MYL was $22.73 when these options were sold.
04/22/2012 MYL May2012 Call options expired.
04/25/2012 Sold 5 MYL May2012 $23.00 Calls at $.30
Note: the price of MYL was $22.20 when these call options were sold.
05/19/2012 MYL Jun2012 Call options expired.
06/04/2012 Sold 5 MYL Jun2012 $21.00 Calls at $.28
06/15/2012 Bought-to-Close 5 Jun2012 $21.00 call options at $.20
06/15/2012 Sold 5 MYL Jul2012 $22.00 call options at $.31
07/18/2012 Bought-to-Close 5 MYL Jul2012 $22.00 call options at $.60
07/18/2012 Sell-to-Open 5 MYL Aug2012 $22.00 call options at $.96
Note: the price of MYL was $22.57 when this credit spread roll-out transaction was made.
08/17/2012 Bought-to-Close 5 MYL Aug2012 $22.00 Calls at $1.53
Note: this was done with the price of MYL at $23.52
08/17/2012 Sold-to-Open 5 MYL Sep2012 $23.00 call options at $.88
09/21/2012 Sep012 $23.00 options expired and 500 MYL shares assigned (called away)at $23.00
Note: the price of MYL stock was $24.55 upon options expiration.
The result from this position is as follows:
Stock Purchase Cost: $11,263.95
= ($22.51*500+$8.95 commission)
Net Profit:
(a) Options Income: +$486.60
= ($.26+$.47+$.30+$.28-$.20+$.31-$.60+$.96-$1.53+$.88)*500 shares) - 7*$11.20 commissions
(b) Dividend Income: $0.00
(c) Capital Appreciation (MYL price above $23.00 at Sep2012 options expiration): +$236.05
= ($23.00-$22.51)*500 - $8.95 commissions
Total Net Profit(MYL stock assigned at $23.00 at Sep2012 options expiration): +$722.65 = (+$486.60 +$0.00 +$236.05)
Absolute Return (Mylan stock assigned at $23.00 at Sep2012 options expiration): +6.4%
= +$722.65/$11,263.95
Annualized Return: +11.8%
= (+$722.65/$11,263.95)*(365/198 days)
7. Occidental Petroleum Corp. -- Closed
The transactions are as follows:
08/23/2012 Bought 200 OXY shares @ $87.80
08/23/2012 Sold 2 OXY Sep2012 $85.00 Call Options @ $3.95
09/06/2012 Ex-dividend of $.54 per share
09/21/2012 Sep012 $85.00 options expired and 200 OXY shares assigned (called away)at $85.00
Note: the price of OXY stock was $87.39 upon options expiration.
The overall performance result (including commissions) for this Occidental Petroleum Corp. (OXY) covered calls position was as follows: Stock Purchase Cost: $17,568.95
= ($87.80*200+$8.95 commission)
Net Profit:
(a) Options Income: +$779.55
= ($3.95*200 shares) - $10.45 commissions
(b) Dividend Income (OXY stock assigned at Sep2012 expiration): +$108.00
= ($.54 dividend per share x 200 shares); or
(c) Capital Appreciation (If stock assigned at $85.00): -$568.95
+($85.00-$87.80)*200 - $8.95 commissions
Total Net Profit (OXY stock assigned at $85.00 at Sep2012 expiration): +$318.60
= (+$779.55 +$108.00 -$568.95); or
Absolute Return (OXY stock assigned at $85.00 at Sep2012 expiration): +1.8% = +$318.60/$17,568.95
Annualized Return: +21.4%
= (+$318.60/$17,568.95)*(365/31 days);
8. United Continental Holdings Inc. (UAL) -- Closed
The transaction was as follows:
08/28/2012 Sold 7 United Continental Holdings Inc.(UAL) Sep2012 $18.00 Put Options @ $.52
Note: the price of UAL was $18.75 today when these Puts were sold.
09/21/2012 Sep012 $18.00 options expired
Note: the price of UAL stock was $20.02 upon options expiration.
The overall performance result (including commissions) for this UAL transaction was as follows: 100% Cash-Secured Cost Basis: $12,600.00 = $18.00*700
Net Profit:
(a) Options Income: +$349.80
= ($.52*700 shares) - $14.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (UAL above $18.00 at Sep2012 expiration): +$0.00
= ($18.00-$18.00)*700
Total Net Profit (UAL above $18.00 at Sep2012 options expiration): +$349.80 = (+$349.80 +$0.00 +$0.00)
Absolute Return (UAL above $18.00 at Sep2012 options expiration and Put options thus expire worthless): +2.8%
= +$349.80/$12,600.00
Annualized Return: +40.5%
= (+$349.80/$12,600.00)*(365/25 days)
9. VALE SA ADR -- Closed
The transactions are as follows:
08/20/2012 Bought 700 VALE shares @ $17.66
08/20/2012 Sold 7 VALE Sep2012 $17.00 Call Options @ $1.09
Note: the price of Vale shares was $17.71 today when these options were sold.
09/21/2012 Sep012 $17.00 options expired and 700 VALE shares assigned (called away)at $17.00
Note: the price of VALE stock was $17.00 upon options expiration.
The overall performance result (including commissions) for this Vale SA ADR (VALE) covered calls position was as follows: Stock Purchase Cost: $12,370.95
= ($17.66*700+$8.95 commission)
Net Profit:
(a) Options Income: +$748.80 = ($1.09 X 700 shares) - $14.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (VALE assigned at $17.00 upon expiration): -$470.95
=+($17.00-$17.66)*700 - $8.95 commissions
Total Net Profit (VALE assigned at $17.00 at Sep2012 expiration): +$277.85
= (+$748.80 +$0.00 -$470.95)
Absolute Return (VALE assigned at $17.00 at Sep2012 expiration): +2.2%
= +$277.85/$12,370.95
Annualized Return: +24.8%
= (+$277.85/$12,370.95)*(365/33 days)
