1. Fusion-io Inc. (Ticker Symbol FIO) -- New Position
The transactions were as follows:
10/19/2012 Bought 300 FIO shares @ $27.55
10/19/2012 Sold 3 FIO Nov2012 $29.00 Call Options @ $2.55
Note: the price of FIO was $27.63 today when these options were sold.
A possible overall performance result (including commissions) is as follows:
Stock Purchase Cost: $8,273.95
= ($27.55*300+$8.95 commission)
Net Profit:
(a) Options Income: +$753.80 = ($2.55*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If FIO price unchanged at $27.55 upon expiration): -$8.95
=+($27.55-$27.55)*300 - $8.95 commissions; OR
(c) Capital Appreciation (If FIO assigned at $29.00 upon expiration): +$426.05 =+($29.00-$27.55)*300 - $8.95 commissions
Total Net Profit (If FIO price unchanged at $27.55 upon expiration): +$744.85
= (+$753.80 +$0.00 -$8.95); OR
Total Net Profit (If FIO assigned at $29.00 at Nov2012 expiration): +$1,179.85 = (+$753.80 +$0.00 +$426.05)
Absolute Return (If FIO price unchanged at $27.55 upon Nov2012 expiration): +9.0%
= +$744.85/$8,273.95
Annualized Return (If stock assigned): +109.5%
= (+$744.85/$8,273.95)*(365/30 days); OR
Absolute Return (If FIO assigned at $29.00 at Nov2012 expiration): +14.3% = +$1,179.85/$8,273.95
Annualized Return (If stock assigned): +173.5%
= (+$1,179.85/$8,273.95)*(365/30 days)
2. iShares MSCI China ETF (Ticker Symbol FXI) -- New Position
The transactions were as follows:
10/19/2012 Bought 800 FXI shares @ $37.11
10/19/2012 Sold 8 FXI Nov2012 $36.00 Call Options @ $1.52
Note: the price of FXI was $37.14 today when the options were sold.
A possible overall performance result (including commissions) for this iShares MSCI China ETF covered calls position is as follows:
Stock Purchase Cost: $29,696.95
= ($37.11*800+$8.95 commission)
Net Profit:
(a) Options Income: +$1,201.05
= 800*$1.52 - $14.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If FXI price unchanged at $37.11): -$8.95
= ($37.11-$37.11)*800 - $8.95 commissions
(c) Capital Appreciation (If FXI assigned at $36.00): -$896.95
= ($36.00-$37.11)*800 - $8.95 commissions
Total Net Profit (If FXI assigned at $36.00): +$304.10
= (+$1,201.05 +$0.00 -$896.95)
Absolute Return if Assigned at $36.00: +1.0%
= +$304.10/$29,696.95
Annualized Return If Assigned (ARIA): +12.5%
= (+$304.10/$29,696.95)*(365/30 days)
3. SPDR Gold Shares (Ticker Symbol GLD) -- New Position
The transaction was as follows:
10/19/2012 Sold 1 SPDR Gold Shares (GLD) Nov2012 $170.00 Put Options @ $4.40
Note: the price of GLD was $167.00 today when these Puts were sold.
Two possible overall performance result (including commissions) for this SPDR Gold Shares (GLD) transaction would be as follows:
100% Cash-Secured Cost Basis: $17,000.00 = $170.00*100
Net Profit:
(a) Options Income: +$430.30 = ($4.40*100 shares) - $9.70 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If GLD price unchanged at $167.00 at Nov2012 expiration):
-$300.00 = ($167.00-$170.00)*100 shares -$0.00 commissions; OR
(c) Capital Appreciation (If GLD price above $170.00 at Nov2012 expiration): +$0.00 = ($170.00-$170.00) -$0.00 commissions
Total Net Profit (If GLD price unchanged at $167.00 at Nov2012 options expiration): +$130.30 = (+$430.30 +$0.00 -$300.00); OR
Total Net Profit (If GLD price above $170.00 at Nov2012 options expiration): +$430.30 = (+$430.30 +$0.00 +$0.00)
Absolute Return (If GLD price unchanged at $167.00 at Nov2012 options expiration): +0.8% = +$130.30/$17,000.00
Annualized Return (If GLD price unchanged at $167.00 at Nov2012 expiration): +9.3%
= (+$130.30/$17,000.00)*(365/30 days)
Absolute Return (If GLD price above $170.00 at Nov2012 options expiration): +2.5% = +$430.30/$17,000.00
Annualized Return (If GLD above $170.00 at expiration): +30.8%
= (+$430.30/$17,000.00)*(365/30 days)
4. Potash Corp. of Saskatchewan Inc. (Ticker Symbol POT) -- New Position
The transaction was as follows:
10/19/2012 Sold 3 Potash Corp.(POT) Nov2012 $40.00 Put Options @ $.88
Note: the price of Potash stock was $40.69 today when these Puts were sold.
A possible overall performance result (including commissions) for this Potash Corp.(POT) transaction would be as follows:
100% Cash-Secured Cost Basis:
$12,000.00 = $40.00*300
Net Profit:
(a) Options Income: +$252.80
= ($.88*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Potash stock above $40.00 at Nov2012 expiration): +$0.00 = ($40.00-$40.00) -$0.00 commissions
Total Net Profit (If stock price above $40.00 at Nov2012 options expiration): +$252.80 = (+$252.80 +$0.00 +$0.00)
Absolute Return (If stock price above $40.00 at Nov2012 options expiration and Put options thus expire worthless): +2.1%
= +$252.80/$12,000.00
Annualized Return (If stock price above $31.00 at expiration): +25.6%
= (+$252.80/$12,000.00)*(365/30 days)
