The Covered Calls Advisor Portfolio (CCAP) contained four covered calls positions with May 2013 expirations. A summary of the results is as follows:
- All four positions (iShares MSCI China ETF, MetLife Inc., Potash Corp of Saskatchewan Inc., and Teva Pharmaceutical Industries Ltd) had their options exercised this past expiration Friday since the stock prices closed above the May2013 options' strike prices. The associated equities were assigned (i.e. equities called away) at their respective strike prices.
The annualized return-on-investment financial results for these four closed positions are:
iShares MSCI China ETF = +19.6%
MetLife Inc. = +27.1%
Potash Corp of Saskatchewan Inc. = +34.0%
Teva Pharmaceuticals = -1.0%
The detailed transactions history and results for these closed positions are provided below.
1. iShares MSCI China ETF (FXI) -- Closed
The transactions history was 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.
05/18/2013 1,000 FXI May2013 call options assigned at $37.00 strike price.
Note: the price of FXI was $37.91 upon options expiration.
The overall performance result (including commissions) for these iShares MSCI China ETF covered calls was 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 (FXI assigned at $37.00) = -$208.95
= ($37.00-$37.20)*1,000 - $8.95 commissions
Total Net Profit (FXI assigned at $37.00): +$1,178.15
= (+$1,387.10 +$0.00 -$208.95)
Absolute Return (at $37.00): +3.2%
= +$1,178.15/$37,208.95
Annualized Return: +19.6%
= (+$1,178.15/$37,208.95)*(365/59 days)
2. MetLife Inc. (MET) -- Closed
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.
05/18/2013 300 MET May2013 call options assigned at $39.00 strike price.
Note: the price of MET was $43.28 upon options expiration.
The overall performance result (including commissions) for these MetLife Inc. (MET) covered calls was 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 was May 4th
(c) Capital Appreciation (MET assigned at $39.00) = +$15.05
= ($39.00-$38.92)*300 - $8.95 commissions
Total Net Profit (MET assigned at $39.00): +$512.35
= (+$441.80 +$55.50 +$15.05)
Absolute Return: +4.4%
= +$512.35/$11,684.95
Annualized Return: +27.1%
= (+$512.35/$11,684.95)*(365/59 days)
3. Potash Corp. of Saskatchewan Inc. -- Closed
The transactions history for this Potash Corp (Ticker Symbol POT) covered calls position was 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.
05/18/2013 300 POT May2013 call options assigned at $40.00 strike price.
Note: the price of POT was $43.59 upon options expiration.
The overall performance result (including commissions) for these Potash Corp (POT) covered calls was 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 was April 9th
(c) Capital Appreciation (POT assigned at $40.00) = -$2.35
= ($40.00-$39.978)*300 - $8.95 commissions
Total Net Profit (POT assigned at $40.00): +$659.25
= (+$577.60 +$84.00 -$2.35)
Absolute Return: +5.5%
= +$659.25/$12,002.35
Annualized Return: +34.0%
= (+$659.25/$12,002.35)*(365/59 days)
4. Teva Pharmaceutical Industries LTD -- Closed
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
05/18/2013 300 TEVA May2013 call options assigned at $37.50 strike price.
Note: the price of TEVA was $40.23 upon options expiration.
The overall performance result (including commissions) for this Teva Pharmaceutical Industries Ltd covered calls position was 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 was 5/7/2013
(c) Capital Appreciation (TEVA assigned at $37.50): -$668.95
= ($37.50-$39.70)*300 - $8.95 commissions
Total Net Profit (TEVA assigned at $37.50): -$16.35
= (+$559.60 +$93.00 -$668.95)
Absolute Return (at $37.50): -0.1%
= -$16.35/$11,918.95
Annualized Return: -1.0%
= (-$16.35/$11,918.95)*(365/52 days)
