10/25/2012 Bought 600 CNQ shares @ $30.28
10/25/2012 Sold 6 CNQ Nov2012 $31.00 Call Options @ $.75
Note: the price of CNQ shares was $30.37 today when these options were sold.
A possible overall performance result (including commissions) for this Canadian Natural Resources LTD (CNQ) covered calls position is as follows:
Stock Purchase Cost: $18,176.95
= ($30.28*600+$8.95 commission)
Net Profit:
(a) Options Income: +$436.55
= ($.75 X 600 shares) - $13.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If CNQ price unchanged at $30.28 upon expiration): -$8.95
=+($30.28-$30.28)*600 - $8.95 commissions; OR
(c) Capital Appreciation (If CNQ assigned at $31.00 upon expiration): +$423.05 =+($31.00-$30.28)*600 - $8.95 commissions
Total Net Profit (If CNQ price unchanged at $30.28 at Nov2012 expiration): +$427.60
= (+$436.55 +$0.00 -$8.95); OR
Total Net Profit (If CNQ assigned at $31.00 at Nov2012 expiration): +$859.60
= (+$436.55 +$0.00 +$423.05)
1. Absolute Return (If CNQ unchanged at $30.28 at Nov2012 expiration): +2.4%
= +$427.60/$18,176.95
Annualized Return (If stock assigned): +35.8%
= (+$427.60/$18,176.95)*(365/24 days); OR
2. Absolute Return (If CNQ assigned at $31.00 at Nov2012 expiration): +4.7% = +$859.60/$18,176.95
Annualized Return (If stock assigned): +71.9%
= (+$859.60/$18,176.95)*(365/24 days)
