- Four of the nine positions (Agnico Eagle Mines Ltd., Anadarko Petroleum Corp., AT&T Inc., and iShares MSCI China Large Cap ETF) were closed out at expiration. This was the optimal result for these positions in that the maximum potential return-on-investment (ROI) results was achieved from when each of these positions was established. The annualized ROI for these closed positions are:
- Agnico Eagle Mines Ltd. = +5.3% absolute return (equivalent to +16.7% annualized return for the 115 days holding period)
- Anadarko Petroleum Corp. = +1.2% absolute return (equivalent to +53.4% annualized return for the 8 days holding period)
- AT&T Inc. = +2.0% absolute return (equivalent to +18.5% annualized return for the 40 days holding period)
- iShares MSCI China Large Cap ETF = +1.8% absolute return (equivalent to +25.3% annualized return for the 26 days holding period)
The detailed transactions history and results for each of these positions is detailed below. The cash available from the closing of these positions will be retained in the Covered Calls Advisor Portfolio until new covered calls and/or 100% cash-secured puts positions are established.
- Five of the nine positions (Alibaba Group Holding ADS, GE Company, iShares MSCI Germany ETF, Google Inc., and The Williams Companies, Inc.) ended at expiration with the price of the stocks below the strike prices. So the respective options expired and the long shares are now retained in the Covered Calls Advisor Portfolio. A decision will be made soon to either sell these shares or to establish a covered calls position by selling Feb2015 call options against the current long stock holdings. When these decisions are made and the accompanying transactions are completed, a post will be made on this blog on the same day along with the detailed transactions to-date for each stock position.
Details of the four closed positions summarized above and the associated return-on-investment results are as follows:
1. Agnico Eagle Mines Ltd. (AEM) -- Closed
The transactions are as follows:
09/24/2014 Sold 3 Oct2014 $30.00 Puts @ $1.10
Note: The price of Agnico Eagle was $30.03 when this transaction was executed.
10/17/2014 3 Oct2014 $30.00 Puts expired
Note: the price of AEM was $28.72 when these Puts expired
10/20/2014 Sold 3 Nov2014 $30.00 Calls @ $1.75
Note: the price of AEM was $29.55 when these options were sold.
11/21/2014 3 Nov2014 Call options expired
Note: the price of AEM was $26.64 today upon Nov2014 options expiration
11/26/2014 Ex-Dividend of $24.00 ($.08 per share x 300 shares)
12/09/2014 Sold 3 AEM Dec2014 $27.50 Call options @ $.35
Note: the price of AEM was $25.52 when these 3 Call options were sold.
12/20/2014 3 Dec2014 $27.50 Call options expired
01/05/2015 Sold 3 AEM Jan2015 $27.50 Call options @ $1.03
Note: the price of AEM was $27.25 when these Call options were sold.
01/16/2015 3 AEM Jan2015 $27.50 Call options expired
Note: the price of AEM was $32.22 upon options expiration
The overall performance result (including commissions) for this Agnico Eagle Mines position was as follows:
100% Cash-Secured Cost Basis: $9,000.00 = $30.00*300
Note: the price of AEM was $30.03 when these Put options were sold.
Net Profit:
(a) Options Income: +$1,224.20
= ($1.10+$1.75+$.35+$1.03)*300 shares - 4*$11.20 commissions
(b) Dividend Income: +$24.00 = ($.08/share x 300 shares)
(c) Capital Appreciation (AEM closed above $27.50 at Jan2015 expiration): -$750.00
= ($27.50-$30.00)*300 shares
Total Net Profit (AEM was above $27.50 strike price at Jan2015 options expiration): +$474.20
= (+$1,224.20 +$0.00 -$750.00)
Absolute Return: +5.3%
= +$474.20/$9,000.00
Annualized Return: +16.7%
= (+$474.20/$9,000.00)*(365/115 days)
2. Anadarko Petroleum Corp. (APC) -- Closed
The transaction was as follows:
01/09/2015 Sold 2 Anadarko Petroleum Corporation Jan2015 $75.00 Puts @ $.93
Note: The price of APC was $77.90 today when this transaction was executed.
01/16/2015 3 APC Jan2015 $75.00 Put options expired
Note: the price of APC was $78.45 upon options expiration
The overall performance result (including commissions) for this transaction was:
100% Cash-Secured Cost Basis: $15,000.00
= $75.00*200
Note: the price of APC was $77.90 when these Put options were sold.
Net Profit:
(a) Options Income: +$175.55
= ($.93*200 shares) - $9.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (APC closed above $75.00 strike price at Jan2015 expiration): +$0.00
= ($75.00-$75.00)*200 shares
Total Net Profit: +$175.55
= (+$175.55 +$0.00 +$0.00)
Absolute Return: +1.2%
= +$175.55/$15,000.00
Annualized Return: +53.4%
= (+$175.55/$15,000.00)*(365/8 days)
3. AT&T Inc. (T) -- Closed
The transaction is as follows:
12/09/2014 Sold 4 out-of-the-money Jan2015 $32.00 Put options @ $.68
Note: The price of AT&T was $32.77 when this transaction was executed.
01/16/2015 4 AT&T Jan2015 $32.00 Call options expired
Note: the price of AT&T was $33.80 upon options expiration
The overall performance result (including commissions) for this AT&T transaction was:
100% Cash-Secured Cost Basis: $12,800.00 = $32.00*400
Note: the price of AT&T was $32.77 when the Put options were sold.
Net Profit:
(a) Options Income: +$260.05
= ($.68*400 shares) - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (AT&T closed above $32.00 at the Jan2015 options expiration): +$0.00
= ($32.00-$32.00)*400 shares
Total Net Profit: +$260.05
= (+$260.05 +$0.00 +$0.00)
Absolute Return: +2.0%
= +$260.05/$12,800.00
Annualized Return: +18.5%
= (+$260.05/$12,800.00)*(365/40 days)
4. iShares MSCI China Large Cap ETF (FXI) -- Closed
The transaction was as follows:
12/22/2014 Sold 4 iShares China Large-Cap ETF Jan2015 $40.00 Puts @ $.75
Note: The price of FXI was approximately $41.06 when this transaction was executed.
01/16/2015 4 FXI Jan2015 $40.00 Call options expired
Note: the price of FXI was $42.22 upon options expiration
The overall performance result (including commissions) for this transaction was:
100% Cash-Secured Cost Basis: $16,000.00
= $40.00*400
Note: the price of FXI was $41.06 when these Put options were sold.
Net Profit:
(a) Options Income: +$288.05
= ($.75*400 shares) - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (FXI was above $40.00 strike price at Jan2015 expiration): +$0.00
= ($40.00-$40.00)*400 shares
Total Net Profit:+$288.05
= +$288.05 +$0.00 +$0.00
Absolute Return: +1.8%
= +$288.05/$16,000.00
Annualized Return: +25.3%
= (+$288.05/$16,000.00)*(365/26 days)
