Today, three Feb2015 $27.00 call options were sold against the 300 long iShares MSCI Germany ETF shares (ticker symbol EWG) held in the Covered Calls Advisor Portfolio. The transactions to date for this position and a potential return-on-investment result are detailed below:
iShares MSCI Germany ETF (EWG) -- Continuation
The transactions are as follows:
12/02/2014 Sold 3 iShares MSCI Germany ETF Dec2014 $29.00 Puts @ $.70
Note: The price of EWG was $28.57 when this transaction was executed.
12/26/2014 Sold 3 EWG Jan2015 $28.00 Call options @ $.60
Note: the price of EWG was $28.24 when
these options were sold.
12/16/2015 Jan2015 EWG Call options expired
12/20/2015 Sold 3 EWG Feb2015 $27.00 Call options @ $1.15
Note: the price of EWG was $27.72 when this transaction was executed.
A possible overall performance result (including commissions) for this transaction would be as follows:
100% Cash-Secured Cost Basis: $8,700.00
= $29.00*300
Net Profit:
(a) Options Income: +$701.40
= ($.70+$.60+$1.15)*300 shares - 3*$11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If EWG is above $27.00 strike price at Feb2015 expiration): -$608.95
= ($27.00-$29.00)*300 shares - $8.95 commissions
Total Net Profit (If EWG is above $27.00 strike price at Feb2015 options expiration): +$92.45
= (+$701.40 +$0.00 -$608.95)
Absolute Return (If EWG is above $27.00 strike price at Feb2015 options expiration): +1.1%
= +$92.45/$8,700.00
Annualized Return: +4.8%
= (+$92.45/$8,700.00)*(365/80 days)
