1. Foot Locker Inc. -- Closed
Today, a decision was made to close the Foot Locker (ticker symbol FL) position.
The transaction history was:
10/22/2012 Bought 300 FL shares @ $35.48
10/22/2012 Sold 3 FL Nov2012 $35.00 Call Options @ $1.45
Note: the price of FL shares was $35.55 today when these options were sold.
11/16/2012 FL Nov2012 options expired
11/19/2012 Sold 3 FL Dec2012 $33.00 Call Options @ $1.45
11/21/2012 Bought-to-Close 3 FL Dec2012 $33.00 Call Options @ $1.55
11/21/2012 Sold 300 FL shares @ $33.96
The overall performance result (including commissions) for this Foot Locker Inc. (FL) covered calls position was as follows:
Stock Purchase Cost: $10,635.05
= ($35.48*300+$8.95 commission)
Net Profit:
(a) Options Income: +$382.60
= ($1.45+$1.45-$1.55) X 300 shares - 2*$11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$464.95
=+($33.96-$35.48)*300 - $8.95 commissions
Total Net Profit: -$82.35
= (+$382.60 +$0.00 -$464.95)
Absolute Return: -0.8%
= -$82.35/$10,635.05
Annualized Return (If stock assigned): -9.4%
= (-$82.35/$10,635.05)*(365/30 days)
2. Fusion-io Inc. -- Closed
The Nov2012 covered calls position in Fusion-io Inc. (ticker symbol FIO) expired last Friday. Today, a decision was made to close the position by selling the 300 shares in FIO. The transaction history was 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.
11/16/2012 FIO Nov2012 options expired
11/21/2012 Sold 300 FIO shares @ $23.10
The 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 (FIO sold at $23.10): -$1,343.95
=+($23.10-$27.55)*300 - $8.95 commissions
Total Net Profit: -$590.15
= (+$753.80 +$0.00 -$1,343.95
Absolute Return: -7.1%
= -$590.15/$8,273.95
Annualized Return: -78.9%
= (-$590.15/$8,273.95)*(365/33 days)
