The transactions are as follows:
02/23/2015 Sold 3 AA Mar2015 $15.00 100% cash-secured Put options @ $.33
Note: The price of AA was $15.47 when this transaction was executed.
03/20/2015 3 AA Mar2015 Put options assigned and 300 shares of AA purchased at $15.00 strike price
Note: the price of Alcoa was $12.97 upon Mar2015 options expiration.
03/23/2015 Sold 3 Apr2015 $13.00 Call options @ $.53
Note: AA stock was $13.02 when these options were sold.
A possible overall performance result (including commissions) for this Alcoa position would be as follows:
100% Cash-Secured Cost Basis: $4,500.00
= $15.00*300
Net Profit:
(a) Options Income: +$235.60
= ($.33+$.53)*300 shares - 2*$11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Alcoa closes above $13.00 at the Apr2015 options expiration): -$600.00
= ($13.00 - $15.00)*300 shares
Total Net Profit (If Alcoa is above $13.00 strike price upon Apr2015 options expiration): -$364.40
= (+$235.60 +$0.00 -$600.00)
Absolute Return (If Alcoa is above $13.00 at Apr2015 options expiration): -8.1%
= -$364.40/$4,500.00
Annualized Return: -55.8%
= (-$364.40/$4,500.00)*(365/53 days)
02/19/2015 Sold 4 Micron Technology Inc. Mar2015 $30.00 Puts @ $.53 Note: The price of Micron was $31.88 when this transaction was executed.
03/20/2015 4 MU Mar2015 Put options assigned and 300 shares of MU purchased at $30.00 strike price
Note: the price of Micron was $28.68 upon Mar2015 options expiration.
03/23/2015 Sold 4 MU Apr2015 $30.00 Call options @ $.54
Note: MU stock was $28.68 when these options were sold.
A possible overall performance result (including commissions) for these Micron Technology transactions would be as follows:
100% Cash-Secured Cost Basis: $12,000.00
= $30.00*400
Net Profit:
(a) Options Income: +$404.10
= ($.53+$.54)*400 shares - 2*$11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If MU closes above $30.00 at Apr2015 expiration): -$8.95
= ($30.00 - $30.00) * 400 shares - $8.95 commission
Total Net Profit (If MU is above $30.00 strike price at Apr2015 options expiration): +$395.15
= (+$404.10 +$0.00 -$8.95)
Absolute Return (If MU closes above $30.00 at Apr2015 options expiration): +3.3%
= +$395.15/$12,000.00
Annualized Return (If MU is above $30.00 at expiration): +21.1%
= (+$395.15/$12,000.00)*(365/57 days)
The transactions are as follows:
02/17/2015 Sold 10 Yamana Gold Mar2015 $4.00 Puts @ $.28
Note: The price of AUY was $3.99 when this transaction was executed.
03/20/2015 10 AUY Mar2015 Put options expired
Note: the price of Yamana Gold was $3.91 upon Mar2015 options expiration.
03/23/2015 Sold 10 Apr2015 $4.00 Call options @ $.21
Note: AUY stock was $4.01 when these options were sold.
A possible overall performance result (including commissions) for these transactions would be as follows:
100% Cash-Secured Cost Basis: $4,000.00
= $4.00*1,000
Note: the price of AUY was $4.00 when these Put options were sold.
Net Profit:
(a) Options Income: +$457.10
= ($.28 + $.21)*1,000 shares - 2*$16.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If AUY is above $4.00 strike price at Apr2015 expiration): +$0.00
= ($4.00 - $4.00)*1,000 shares
Total Net Profit (If AUY is above $4.00 strike price at Apr2015 options expiration): +$457.10
= (+457.10 +$0.00 +$0.00)
Absolute Return: +11.4%
= +$457.10/$4,000.00
Annualized Return (If AUY closes above $4.00 at expiration): +70.7%
= (+$457.10/$4,000.00)*(365/59 days)
4. YRC Worldwide Inc. (YRCW) -- Continuation
The transactions are as follows:
02/23/2015 Sold 4 YRCW Mar2015 $20.00 100% cash-secured Put options @ $1.30Note: The price of YRCW was $19.67 when this transaction was executed.
03/20/2015 4 YRCW Mar2015 Put options expired
Note: the price of YRC Worldwide was $18.98 upon Mar2015 options expiration.
03/23/2015 Sold 4 YRCW Apr2015 $20.00 Call options @ $.50
Note: YRCW stock was $19.00 when these options were sold.
Two possible overall performance results (including commissions) would be as follows:
100% Cash-Secured Cost Basis: $8,000.00
= $20.00*400
Net Profit:
(a) Options Income: +$696.10
= ($1.30 + $.50)*400 shares - 2*$11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If YRCW stock price is unchanged at $19.00 at Apr2015 expiration): -$400.00
= ($19.00 - $20.00)*400 shares; OR
(c) Capital Appreciation (If YRCW is above $20.00 strike price at Apr2015 expiration): +$0.00
= ($20.00-$20.00)*400 shares
1. Total Net Profit (If YRCW is unchanged at $19.67 at Apr2015 options expiration): +$606.80
= (+$738.80 +$0.00 -$132.00); OR
2. Total Net Profit (If YRCW is above $20.00 strike price at Apr2015 options expiration): +$738.80
= (+$738.80 +$0.00 +$0.00)
1. Absolute Return (If YRCW is unchanged at $19.00 at Apr2015 options expiration): +7.6%
= +$606.80/$8,000.00
Annualized Return: +52.2%
= (+$606.80/$18,000.00)*(365/53 days); or
2. Absolute Return (If YRCW is above $20.00 strike price at Apr2015 options expiration): +9.2%
= +$738.80/$8,000.00
Annualized Return: +63.6%
= (+$738.80/$8,000.00)*(365/53 days)
