Apple Inc. (AAPL) -- New Covered Call Position
The transactions were as follows:
1/25/2013 Bought 100 AAPL shares @ $453.86
1/25/2013 Sold 1 AAPL Feb2013 $455.00 Call Option @ $12.35
Note: the price of AAPL was $454.35 when the option was sold.
A possible overall performance result (including commissions) for this Apple Inc. covered call is as follows:
Stock Purchase Cost: $45,394.95
= ($453.86*100+$8.95 commission)
Net Profit:
(a) Options Income: +$1,225.30
= 100*$12.35 - $9.70 ommissions
(b) Dividend Income: +$265.00 ($2.65 * 100 shares) Ex-div on Feb 11th
(c) Capital Appreciation (If AAPL assigned at $455.00) = +$105.05
= ($455.00-$453.86)*100 - $8.95 commissions
Total Net Profit (If AAPL assigned at $455.00): +$1,595.35
= (+$1,225.30 +$265.00 +$105.05)
Absolute Return if Assigned (at $455.00): +3.5%
= +$1,595.35/$45,394.95
Annualized Return If Assigned (ARIA): +55.8%
= (+$1,595.35/$45,394.95)*(365/23 days)
