Today, a May 2013 call option was sold in Apple Inc. to re-establish the covered call position. As shown below, the April 2013 covered call option expired and the new position today was established at the May2013 $425.00 strike price. The transactions to date and a potential return on investment result is detailed below.
Apple Inc. Covered Call -- Continuation
The transactions history to date is as follows:
3/5/2013 Bought 100 AAPL shares @ $421.77
3/5/2013 Sold 1 Apr2013 $430 call option @ $9.70
04/19/2013 Apr2013 AAPL options expired
04/29/2013 Sold 1 AAPL May2013 $425.00 call option @ $10.01
Note: the AAPL price was $426.80 when the option was sold.
05/09/2013 $305.00=($3.05*100 shares) ex-dividend date
A possible overall performance result (including commissions) for this Apple Inc. (symbol AAPL) covered call is as follows:
Stock Purchase Cost: $42,185.95
= ($421.77*100+$8.95 commission)
Net Profit:
(a) Options Income: +$1,951.60
= 100*($9.70+$10.01) - 2*$9.70 commissions
(b) Dividend Income: +$305.00 ($3.05*100 shares) on May 9th ex-div date
(c) Capital Appreciation (If AAPL assigned at $425.00) = +$314.05
= ($425.00-$421.77)*100 - $8.95 commissions
Total Net Profit (If AAPL assigned at $425.00): +$2,570.65
= (+$1,951.60 +$305.00 +$314.05)
Absolute Return if Assigned (at $425.00): +6.1%
= +$2,570.65/$42,185.95
Annualized Return If Assigned (ARIA): +30.1%
= (+$2,570.65/$42,185.95)*(365/74 days)
Monday, April 29, 2013
Saturday, April 27, 2013
Continuation -- Covered Call Positions in iShares MSCI China ETF, Potash Corp., and Teva Pharmaceutical Industries
Yesterday, covered call positions were re-established in iShares MSCI China ETF, Potash Corp of Saskatchewan Incl, and Teva Pharmaceuticals. In each case, these positions are continuations of covered call positions that were not assigned upon the April options expiration. The detailed transactions for each position and possible performance results are shown below.
1. iShares MSCI China ETF -- Continuation
The transactions so far in this iShares MSCI China ETF (Ticker Symbol FXI) covered calls position as follows:
3/20/2013 Bought 1,000 FXI shares @ $37.20
3/20/2013 Sold 10 FXI Apr2013 $37.50 call options @ $.69
Note: the price of FXI was $37.20 when the options were sold.
04/19/2013 Apr2013 FXI options expired
04/26/2013 Sold 10 FXI May2013 $37.00 call options @ $.73
Note: the price of FXI was $36.92 when these options were sold.
A possible overall performance result (including commissions) for these iShares MSCI China ETF covered calls is as follows:
Stock Purchase Cost: $37,208.95
= ($37.20*1,000+$8.95 commission)
Net Profit:
(a) Options Income: +$1,387.10
= 1,000*($.69+$.73) - 2*$16.45 ommissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If FXI assigned at $37.50) = -$208.95
= ($37.00-$37.20)*1,000 - $8.95 commissions
Total Net Profit (If FXI assigned at $37.00): +$1,178.15
= (+$1,387.10 +$0.00 -$208.95)
Absolute Return if Assigned (at $37.00): +3.2%
= +$1,178.15/$37,208.95
Annualized Return If Assigned (ARIA): +19.6%
= (+$1,178.15/$37,208.95)*(365/59 days)
2. MetLife Inc. (MET) -- New Covered Call Position
The transactions were as follows:
03/20/2013 Bought 300 MET shares @ $38.92
3/20/2013 Sold 3 MET May2013 $39.00 Call Options @ $1.51
Note: the price of MET was $38.92 when the options were sold.
A possible overall performance result (including commissions) for these MetLife Inc. (MET) covered calls is as follows:
Stock Purchase Cost: $11,684.95
= ($38.92*300+$8.95 commission)
Net Profit:
(a) Options Income: +$441.80
= 300*$1.51 - $11.20 commissions
(b) Dividend Income: +$55.50 = ($.185 * 300 shares). Ex-div date is May 4th
(c) Capital Appreciation (If MET assigned at $39.00) = +$15.05
= ($39.00-$38.92)*300 - $8.95 commissions
Total Net Profit (If MET assigned at $39.00): +$512.35
= (+$441.80 +$55.50 +$15.05)
Absolute Return if Assigned (at $39.00): +4.4%
= +$512.35/$11,684.95
Annualized Return If Assigned (ARIA): +27.1%
= (+$512.35/$11,684.95)*(365/59 days)
3. Potash Corp. of Saskatchewan Inc. -- Continuation
The transactions so far in this Potash Corp (Ticker Symbol POT) covered calls position as follows:
The transactions were as follows:
03/20/2013 Bought 300 POT shares @ $39.978
3/20/2013 Sold 3 POT Apr2013 $40.00 Call Options @ $.79
Note: the price of POT was $39.978 when the options were sold.
04/09/2013 $84.00 = ($.28 * 300 shares) ex-dividend
04/19/2013 Apr2013 POT options expired
04/26/2013 Sold 3 POT May2013 $40.00 call options @ $1.21
Note: the price of POT was $40.74 when these options were sold.
A possible overall performance result (including commissions) for these Potash Corp (POT) covered calls is as follows:
Stock Purchase Cost: $12,002.35
= ($39.978*300+$8.95 commission)
Net Profit:
(a) Options Income: +$577.60
= 300*($.79+$1.21) - 2*$11.20 ommissions
(b) Dividend Income: +$84.00 = ($.28 * 300 shares). Ex-div date is April 9th
(c) Capital Appreciation (If POT assigned at $40.00) = -$2.35
= ($40.00-$39.978)*300 - $8.95 commissions
Total Net Profit (If POT assigned at $40.00): +$659.25
= (+$577.60 +$84.00 -$2.35)
Absolute Return if Assigned (at $40.00): +5.5%
= +$659.25/$12,002.35
Annualized Return If Assigned (ARIA): +34.0%
= (+$659.25/$12,002.35)*(365/59 days)
4. Teva Pharmaceutical Industries LTD -- Continuation The transactions were as follows: 3/27/2013 Bought 300 TEVA shares @ $39.70
3/27/2013 Sold 3 TEVA Apr2013 $40.00 Call Options @ $.64
Note: The price of TEVA was $39.77 when the options were sold
04/19/2013 Apr2013 TEVA options expired
04/26/2013 Sold 3 TEVA May2013 $37.50 call options @ $1.30
Note: the price of TEVA was $38.55 when these options were sold.
05/07/2013 $93.00 = ($.31 * 300 shares) ex-dividend
A possible overall performance result (including commissions) for this Teva Pharmaceutical Industries Ltd covered calls position is as follows:
Stock Purchase Cost: $11,918.95
= ($39.70*300+$8.95 commission)
Net Profit:
(a) Options Income: +$559.60
= 300*($.64+$1.30) - 2*$11.20 commissions
(b) Dividend Income: +$93.00=($.31 * 300 shares) ex-dividend date is 5/7/2013
(c) Capital Appreciation (If TEVA assigned at $37.50): -$668.95 = ($37.50-$39.70)*300 - $8.95 commissions
Total Net Profit (If TEVA assigned at $37.50): -$16.35
= (+$559.60 +$93.00 -$668.95)
Absolute Return if Assigned (at $37.50): -0.1%
= -$16.35/$11,918.95
Annualized Return If Assigned (ARIA): -1.0%
= (-$16.35/$11,918.95)*(365/52 days)
1. iShares MSCI China ETF -- Continuation
The transactions so far in this iShares MSCI China ETF (Ticker Symbol FXI) covered calls position as follows:
3/20/2013 Bought 1,000 FXI shares @ $37.20
3/20/2013 Sold 10 FXI Apr2013 $37.50 call options @ $.69
Note: the price of FXI was $37.20 when the options were sold.
04/19/2013 Apr2013 FXI options expired
04/26/2013 Sold 10 FXI May2013 $37.00 call options @ $.73
Note: the price of FXI was $36.92 when these options were sold.
A possible overall performance result (including commissions) for these iShares MSCI China ETF covered calls is as follows:
Stock Purchase Cost: $37,208.95
= ($37.20*1,000+$8.95 commission)
Net Profit:
(a) Options Income: +$1,387.10
= 1,000*($.69+$.73) - 2*$16.45 ommissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If FXI assigned at $37.50) = -$208.95
= ($37.00-$37.20)*1,000 - $8.95 commissions
Total Net Profit (If FXI assigned at $37.00): +$1,178.15
= (+$1,387.10 +$0.00 -$208.95)
Absolute Return if Assigned (at $37.00): +3.2%
= +$1,178.15/$37,208.95
Annualized Return If Assigned (ARIA): +19.6%
= (+$1,178.15/$37,208.95)*(365/59 days)
2. MetLife Inc. (MET) -- New Covered Call Position
The transactions were as follows:
03/20/2013 Bought 300 MET shares @ $38.92
3/20/2013 Sold 3 MET May2013 $39.00 Call Options @ $1.51
Note: the price of MET was $38.92 when the options were sold.
A possible overall performance result (including commissions) for these MetLife Inc. (MET) covered calls is as follows:
Stock Purchase Cost: $11,684.95
= ($38.92*300+$8.95 commission)
Net Profit:
(a) Options Income: +$441.80
= 300*$1.51 - $11.20 commissions
(b) Dividend Income: +$55.50 = ($.185 * 300 shares). Ex-div date is May 4th
(c) Capital Appreciation (If MET assigned at $39.00) = +$15.05
= ($39.00-$38.92)*300 - $8.95 commissions
Total Net Profit (If MET assigned at $39.00): +$512.35
= (+$441.80 +$55.50 +$15.05)
Absolute Return if Assigned (at $39.00): +4.4%
= +$512.35/$11,684.95
Annualized Return If Assigned (ARIA): +27.1%
= (+$512.35/$11,684.95)*(365/59 days)
3. Potash Corp. of Saskatchewan Inc. -- Continuation
The transactions so far in this Potash Corp (Ticker Symbol POT) covered calls position as follows:
The transactions were as follows:
03/20/2013 Bought 300 POT shares @ $39.978
3/20/2013 Sold 3 POT Apr2013 $40.00 Call Options @ $.79
Note: the price of POT was $39.978 when the options were sold.
04/09/2013 $84.00 = ($.28 * 300 shares) ex-dividend
04/19/2013 Apr2013 POT options expired
04/26/2013 Sold 3 POT May2013 $40.00 call options @ $1.21
Note: the price of POT was $40.74 when these options were sold.
A possible overall performance result (including commissions) for these Potash Corp (POT) covered calls is as follows:
Stock Purchase Cost: $12,002.35
= ($39.978*300+$8.95 commission)
Net Profit:
(a) Options Income: +$577.60
= 300*($.79+$1.21) - 2*$11.20 ommissions
(b) Dividend Income: +$84.00 = ($.28 * 300 shares). Ex-div date is April 9th
(c) Capital Appreciation (If POT assigned at $40.00) = -$2.35
= ($40.00-$39.978)*300 - $8.95 commissions
Total Net Profit (If POT assigned at $40.00): +$659.25
= (+$577.60 +$84.00 -$2.35)
Absolute Return if Assigned (at $40.00): +5.5%
= +$659.25/$12,002.35
Annualized Return If Assigned (ARIA): +34.0%
= (+$659.25/$12,002.35)*(365/59 days)
4. Teva Pharmaceutical Industries LTD -- Continuation The transactions were as follows: 3/27/2013 Bought 300 TEVA shares @ $39.70
3/27/2013 Sold 3 TEVA Apr2013 $40.00 Call Options @ $.64
Note: The price of TEVA was $39.77 when the options were sold
04/19/2013 Apr2013 TEVA options expired
04/26/2013 Sold 3 TEVA May2013 $37.50 call options @ $1.30
Note: the price of TEVA was $38.55 when these options were sold.
05/07/2013 $93.00 = ($.31 * 300 shares) ex-dividend
A possible overall performance result (including commissions) for this Teva Pharmaceutical Industries Ltd covered calls position is as follows:
Stock Purchase Cost: $11,918.95
= ($39.70*300+$8.95 commission)
Net Profit:
(a) Options Income: +$559.60
= 300*($.64+$1.30) - 2*$11.20 commissions
(b) Dividend Income: +$93.00=($.31 * 300 shares) ex-dividend date is 5/7/2013
(c) Capital Appreciation (If TEVA assigned at $37.50): -$668.95 = ($37.50-$39.70)*300 - $8.95 commissions
Total Net Profit (If TEVA assigned at $37.50): -$16.35
= (+$559.60 +$93.00 -$668.95)
Absolute Return if Assigned (at $37.50): -0.1%
= -$16.35/$11,918.95
Annualized Return If Assigned (ARIA): -1.0%
= (-$16.35/$11,918.95)*(365/52 days)
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