The Covered Calls Advisor held only two positions through the January 2014 options expiration. One was a covered calls position in Noble Corporation (ticker symbol NE) in which the Jan2014 options expired since the stock closed below the strike price. The second position is a long stock position with 600 shares of Agnico Eagle Mines Ltd (ticker symbol AEM). These two positions represent only about 9% of the Covered Calls Advisor Portfolio. The remaining 91% is in cash, some of which will be invested this week. All transactions will be described on this blog on the same day they occur. The details of the two existing positions are as follows:
1. Agnico Eagle Mines Ltd (AEM) -- Long Stock Position
10/31/2013 Bought 600 AEM shares @ $29.086
10/31/2013 Sold 6 AEM Dec2013 $27.50 Call Options @ $2.72
Note: the price of AEM was $29.20 today when these options were sold.
11/27/2013 Ex-dividend of $.22 per share
12/20/2013 Dec2013 AEM Call Options expired
01/20/2014 600 long shares of AEM @ $29.36
The overall performance result (including commissions) to-date for this Agnico Eagle(AEM) position is:
Stock Purchase Cost: $17,460.55 = ($29.086*600+$8.95 commission)
Net Profit: (a) Options Income: +$1,618.55 = ($2.72*600 shares) - $13.45 commissions
(b) Dividend Income: +$132.00 = ($.22 dividend per share x 600 shares)
(c) Capital Appreciation (Unrealized): +$155.45
+($29.36-$29.086)*600 - $8.95 commissions
Total Net Profit (Unrealized since long AEM position remains intact): +$1,906.00
= (+$1,618.55 +$132.00 +$155.45)
Absolute Return To-Date: +10.9%
= +$1,906.00/$17,460.55
Annualized Return (as of 1/20/2014): +49.2%
= (+$1,960.00/$17,460.55)*(365/81)
2. Noble Corporation (NE) -- Covered Calls Position
The transactions were as follows: 11/04/2013
Sold 3 Dec2013 $37.00 Noble Corp 100% Cash-Secured Put Options @ $1.24
Note: the price of NE was $37.32 when these options were sold
12/20/2013 Purchased 300 NE shares assigned at $37.00 strike price
Note: the price of NE was $36.32 at Dec2013 options expiration
12/31/2013 Sold 3 Jan2014 $37.00 Noble Corp Call Options @ $.80
Note: the price of NE was $36.97 when these options were sold
1/17/2014 Jan2014 $37.00 Noble Corp call options expired
Note: price of NE was $35.39 when these options expired
The overall performance result (to-date including commissions) for these Noble Corp covered calls is as follows:
Stock Purchase Cost: $11,108.95
= ($37.00*300+$8.95 commission)
Net Profit: (a) Options Income: +$589.60
= 300*($1.24+$.80) - 2*$11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (to-date) = -$491.95
= ($35.39-$37.00)*300 - $8.95 commissions
Total Net Profit (unrealized to-date): +$97.65
= (+$589.60 +$0.00 -$491.95)
Absolute Return (to-date): +0.9%
= +$97.65/$11,108.95
Annualized Return (as of 1/20/2014): +4.2%
= (+$97.65/$11,108.95)*(365/77 days)
