The results are as follows:
- All nine positions (Alcoa Inc., Avis Budget Group Inc., Delta Air Lines Inc., iShares China Large-Cap ETF, iShares MSCI Germany ETF, Google Inc., Hertz Global Holdings Inc., United Continental Holdings Inc., and The Williams Companies Inc.) were closed out at expiration. This was the optimal result for these positions in that the maximum potential return-on-investment (ROI) results were achieved from when each of these positions was established. The annualized ROI for these positions are:
- Alcoa Inc. = +2.5% absolute return (equivalent to +23.4% annualized return for the 39 days holding period)
- Avis Budget Group Inc. = +1.5% absolute return (equivalent to +21.1% annualized return for the 26 days holding period)
- Delta Air Lines Inc. = +2.7% absolute return (equivalent to +49.7% annualized return for the 20 days holding period)
- iShares China Large-Cap ETF = +1.3% absolute return (equivalent to +14.5% annualized return for the 33 days holding period)
- iShares MSCI Germany ETF = +1.1% absolute return (equivalent to +4.8% annualized return for the 80 days holding period)
- Google Inc. = +3.4% absolute return (equivalent to +17.1% annualized return for the 73 days holding period)
- Hertz Global Holdings Inc. = +4.1% absolute return (equivalent to +45.4% annualized return for the 33 days holding period)
- United Continental Holdings Inc. = +2.4% absolute return (equivalent to +27.0% annualized return for the 33 days holding period)
- The Williams Companies Inc. = +4.1% absolute return (equivalent to +29.4% annualized return for the 51 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.
1. Alcoa Inc.(AA) -- Closed
The transaction was as follows:
01/14/2015 Sold 4 Alcoa Inc. Feb2015 $14.00 Puts @ $.38
Note: The price of AA was $14.78 today when this transaction was executed.
02/20/2015 4 Alcoa Puts expired
Note: the price of AA was $15.79 upon Feb2015 options expiration
The overall performance result (including commissions) for this transaction was as follows:
100% Cash-Secured Cost Basis: $5,600.00
= $14.00*400
Note: the price of AA was $14.78 when these Put options were sold.
Net Profit:
(a) Options Income: +$140.05
= ($.38*400 shares) - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (AA closed above $14.00 strike price at Feb2015 expiration): +$0.00
= ($14.00-$14.00)*400 shares
Total Net Profit (AA closed above $14.00 strike price at Feb2015 options expiration): +$140.05
= (+$140.05 +$0.00 +$0.00)
Absolute Return (AA closed above $14.00 strike price at Feb2015 options expiration): +2.5%
= +$140.05/$5,600.00
Annualized Return: +23.4%
= (+$140.05/$5,600.00)*(365/39 days)
2. Avis Budget Group Inc. (CAR) -- Closed
The transaction was as follows:
01/27/2015 Sold 2 Avis Budget Group Inc. Feb2015 $55.00 Puts @ $.88
Note: The price of CAR was $59.90 when this transaction was executed.
02/20/2015 2 Avis Budget Group Puts expired
Note: the price of CAR was $62.45 upon Feb2015 options expiration
The overall performance result (including commissions) for this transaction was as follows:
100% Cash-Secured Cost Basis: $11,000.00
= $55.00*200
Note: the price of CAR was $59.90 when these Put options were sold.
Net Profit:
(a) Options Income: +$165.55
= ($.88*200 shares) - $10.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (CAR was above $55.00 strike price at Feb2015 expiration): +$0.00
= ($55.00-$55.00)*200 shares
Total Net Profit (CAR was above $55.00 strike price at Feb2015 options expiration): +$165.55
= (+$165.55 +$0.00 +$0.00)
Absolute Return (CAR was above $55.00 strike price at Feb2015 options expiration): +1.5%
= +$165.55/$11,000.00
Annualized Return: +21.1%
= (+$165.55/$11,000.00 )*(365/26 days)
3. iShares China Large-Cap ETF (FXI) -- Closed
The transactions were as follows:
01/20/2015 Bought 400 iShares China Large-Cap ETF shares @ $41.63
02/20/2015 Sold 4 FXI Feb2015 $40.00 Call options @ $2.23
Note: The price of FXI was $41.63 today when this transaction was executed.
02/20/2015 4 FXI Call options exercised and 400 FXI shares sold at $40.00 strike price
Note: the price of FXI was $43.33 upon the Feb2015 options expiration date
The overall performance result (including commissions) was as follows:
Bought 400 share FXI: $16,660.95
= $41.63*400 + $8.95 commission
Net Profit:
(a) Options Income: +$880.05
= ($2.23*400 shares) - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (FXI closed above $40.00 strike price at Feb2015 expiration): -$660.95
= ($40.00-$41.63)*400 shares - $8.95 commissions
Total Net Profit (FXI closed above $40.00 strike price at Feb2015 options expiration): +$219.10
= (+$880.05 +$0.00 -$660.95)
Absolute Return (FXI was above $40.00 strike price at Feb2015 options expiration): +1.3%
= +$219.10/$16,660.95
Annualized Return: +14.5%
= (+$219.10/$16,660.95)*(365/33 days)
4. Delta Air Lines Inc. (DAL) -- Closed
The transaction was as follows:
02/02/2015 Sold 2 Delta Air Lines Inc. Feb2015 $44.00 Puts @ $1.25
Note: The price of DAL was $45.27 when this transaction was executed.
02/20/2015 2 Delta Puts expired
Note: the price of DAL was $47.44 upon Feb2015 options expiration
The overall performance result (including commissions) for this transaction was as follows:
100% Cash-Secured Cost Basis: $8,800.00
= $44.00*200
Note: the price of DAL was $45.27 when these Put options were sold.
Net Profit:
(a) Options Income: +$239.55
= ($1.25*200 shares) - $10.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (DAL was above $44.00 strike price at Feb2015 expiration): +$0.00
= ($44.00-$44.00)*200 shares
Total Net Profit (DAL was above $44.00 strike price at Feb2015 options expiration): +$239.55
= (+$239.55 +$0.00 +$0.00)
Absolute Return (DAL was above $44.00 strike price at Feb2015 options expiration): +2.7%
= +$239.55/$8,800.00
Annualized Return: +49.7%
= (+$239.55/$8,800.00)*(365/20 days)
5. iShares MSCI Germany ETF (EWG) -- Closed
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.
02/20/2015 3 EWG Call options exercised and 300 EWG shares sold at $27.00 strike price
Note: the price of EWG was $29.50 upon the Feb2015 options expiration date
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 (EWG was above $27.00 strike price at Feb2015 expiration): -$608.95
= ($27.00-$29.00)*300 shares - $8.95 commissions
Total Net Profit (EWG was above $27.00 strike price at Feb2015 options expiration): +$92.45
= (+$701.40 +$0.00 -$608.95)
Absolute Return (EWG was 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)
6. Google Inc. (GOOG) -- Closed
12/09/2014 Sold 1 Jan2015 $530.00 Put @ $18.20
Note: The price of Google was $522.64 when this transaction was executed.
01/16/2015 1 GOOG Jan2015 Put options expired
Note: the price of Google stock was $508.08 upon Jan2015 options expiration.
01/21/2015 Sold 1 Feb2015 $520.00 Call option @ $10.20
Note: Google Inc. stock was $509.22 when this Call option was sold.
02/20/2015 1 GOOG Call option exercised and 100 GOOG shares sold at $320.00 strike price
Note: the price of GOOG was $538.95 upon the Feb2015 options expiration date
The overall performance result (including commissions) for these Google transactions was as follows:
100% Cash-Secured Cost Basis: $53,000.00
= $530.00*100
Net Profit:
(a) Options Income: +$2,820.60
= ($18.20+$10.20)*100 shares - 2*$9.70 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (GOOG was above $520.00 at Feb2015 expiration): -$1,008.95
= ($520.00 liquidation cost if assigned - $530.00 cash-secured cost basis)*100 shares - $8.95 commission
Total Net Profit (GOOG was above $520.00 strike price at Feb2015 options expiration): +$1,811.65
= (+$2,820.60 +$0.00 -$1,008.95)
Absolute Return (GOOG was above $520.00 at Feb2015 options expiration): +3.4%
= +$1,811.65/$53,000.00
Annualized Return (GOOG was above $520.00 at expiration): +17.1%
= (+$1,811.65/$53,000.00)*(365/73 days)
7. Hertz Global Holdings Inc. (HTZ) -- Closed
The transaction was as follows:
01/20/2015 Sold 4 Hertz Global Holdings Inc. Feb2015 $20.00 Puts @ $.85
Note: The price of HTZ was $20.72 when this transaction was executed.
02/20/2015 4 Hertz Puts expired
Note: the price of HTZ was $23.20 upon Feb2015 options expiration
The overall performance result (including commissions) for this transaction was as follows:
100% Cash-Secured Cost Basis: $8,000.00
= $20.00*400
Note: the price of HTZ was $20.72 when these Put options were sold.
Net Profit:
(a) Options Income: +$328.05
= ($.85*400 shares) - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (HTZ was above $20.00 strike price at Feb2015 expiration): +$0.00
= ($20.00-$20.00)*400 shares
Total Net Profit (HTZ was above $20.00 strike price at Feb2015 options expiration): +$328.05
= (+$328.05 +$0.00 +$0.00)
Absolute Return (HTZ was above $20.00 strike price at Feb2015 options expiration): +4.1%
= +$328.05/$8,000.00
Annualized Return: +45.4%
= (+$328.05/$8,000.00)*(365/33 days)
8. United Continental Holdings Inc. (UAL) -- Closed
The transactions were as follows:
01/20/2015 Sold 3 UAL 100% cash-secured $60.00 Put options @ $1.50
Note: The price of UAL was $67.25 today when this transaction was executed.
02/20/2015 3 United Continental Puts expired
Note: the price of UAL was $68.01 upon Feb2015 options expiration
The overall performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $18,000.00
= $60.00*300
Net Profit:
(a) Options Income: +$438.80
= ($1.50*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (UAL was above $60.00 strike price at Feb2015 expiration): +$0.00
= ($60.00-$60.00)*300 shares
Total Net Profit (UAL was above $60.00 strike price at Feb2015 options expiration): +$438.80
= (+$438.80 +$0.00 +$0.00)
Absolute Return (UAL is above $60.00 strike price at Feb2015 options expiration): +2.4%
= +$438.80/$18,000.00
Annualized Return: +27.0%
= (+$438.80/$18,000.00)*(365/33 days)
9. Williams Companies Inc. (WMB) -- Closed
The transactions are as follows:
12/31/2014 Sold 3 Williams Companies Inc. Jan2015 $44.00 Puts @ $.90
Note: The price of WMB was $44.96 when this transaction was executed.
01/16/2015 3 WMB Jan2015 Put options expired
Note: the price of Williams Companies was $42.00 upon Jan2015 options expiration.
01/21/2015 Sold 3 Feb2015 $44.00 Call options @ $.98
Note: WMB stock was $42.49 when these options were sold.
02/20/2015 3 WMB Call options exercised and 300 WMB shares sold at $44.00 strike price
Note: the price of WMB was $48.87 upon the Feb2015 options expiration date
The overall performance result (including commissions) for these transactions was as follows:
100% Cash-Secured Cost Basis: $13,200.00
= $44.00*300
Note: the price of WMB was $44.96 when these Put options were sold.
Net Profit:
(a) Options Income: +$541.60
= ($.90 + $.98)*300 shares - 2*$11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (WMB was above $44.00 strike price at Feb2015 expiration): +$0.00
= ($44.00 liquidation price if assigned -$44.00 cash-secured cost basis)*300 shares
Total Net Profit (WMB was above $44.00 strike price at Feb2015 options expiration): +$541.60= (+541.60 +$0.00 +$0.00)
Absolute Return (WMB was above $44.00 strike price at Feb2015 options expiration): +4.1%= +$541.60/$13,200.00
Annualized Return: +29.4%
= (+$541.60/$13,200.00)*(365/51 days)
