- Nine of the twelve positions (Community Health Systems Inc., Delta Air Lines Inc., iShares China Large-Cap ETF, Pilgrim's Pride Corp., 2 positions in United Continental Holdings Inc., United States Steel Corp., VeriFone Systems Inc., and VMware Inc.) 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:
- Community Health Systems Inc. = +2.4% absolute return (equivalent to +32.7% annualized return for the 27 days holding period)
- Delta Air Lines Inc. = +2.1% absolute return (equivalent to +42.5% annualized return for the 18 days holding period)
- iShares Large-Cap China ETF = +1.5% absolute return (equivalent to +55.4% annualized return for the 10 days holding period)
- Pilgrim's Pride Corp. = +1.5% absolute return (equivalent to +31.6% annualized return for the 17 days holding period)
- United Continental Holdings Inc. (1st position) = +4.1% absolute return (equivalent to +36.5% annualized return for the 41 days holding period)
- United Continental Holdings Inc. (2nd position) = +1.4% absolute return (equivalent to +34.1% annualized return for the 15 days holding period)
- United States Steel Corp. = +1.8% absolute return (equivalent to +37.0% annualized return for the 18 days holding period)
- VeriFone Systems Inc. = +1.4% absolute return (equivalent to +48.0% annualized return for the 11 days holding period)
- VMware Inc. = +1.2% absolute return (equivalent to +45.5% annualized return for the 10 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.
- Three of the twelve positions (Alcoa Inc., Micron Technology Inc., and YRC Worldwide 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 future 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 position.
Details of the nine closed positions summarized above and the associated return-on-investment results are as follows:
1. Community Health Systems Inc. (CYH) -- Closed
The transactions were as follows:
02/23/2015 Sold 3 CYH Mar2015 $46.00 100% cash-secured Put options @ $1.15
Note: The price of CYH was $47.68 when this transaction was executed.
03/20/2015 CYH Mar2015 $46.00 Put options expired
Note: the price of CYH was $53.08 upon options expiration
The overall performance result (including commissions) is as follows:
100% Cash-Secured Cost Basis: $13,800.00
= $46.00*300
Net Profit:
(a) Options Income: +$333.80
= ($1.15*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (CYH is above $46.00 strike price at Mar2015 expiration): +$0.00
= ($46.00-$46.00)*300 shares
Total Net Profit: +$333.80
= (+$333.80 +$0.00 +$0.00)
Absolute Return: +2.4%
= +$333.80/$13,800.00
Annualized Return: +32.7%
= (+$333.80/$13,800.00)*(365/27 days)
2. Delta Air Lines Inc. (DAL) -- Closed
The transactions were as follows:
03/04/2015 Sold 3 Delta Air Lines Inc. Mar2015 $44.00 Puts @ $.96
Note: The price of DAL was $44.93 when this transaction was executed.
03/20/2015 3 DAL Mar2015 $44.00 Put options expired
Note: the price of DAL was $47.42 upon options expiration
The overall performance result (including commissions) for this transaction was:
100% Cash-Secured Cost Basis: $13,200.00
= $44.00*300
Note: the price of DAL was $44.93 when these Put options were sold.
Net Profit:
(a) Options Income: +$276.80
= ($.96*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (DAL closed above $44.00 strike price at Mar 20th, 2015 expiration): +$0.00
= ($44.00-$44.00)*300 shares
Total Net Profit: +$276.80
= (+$276.80 +$0.00 +$0.00)
Absolute Return: +2.1%
= +$276.80/$13,200.00
= (+$276.80/$13,200.00)*(365/18 days)
3. iShares Large-Cap China ETF (FXI) -- Closed
The transactions were as follows:
03/11/2015 Sold 3 FXI Mar2015 $41.00 100% cash-secured Put options @ $.66
Note: The price of FXI was $40.85 when this transaction was executed.
03/20/2015 3 FXI Mar2015 $41.00 Put options expired
Note: the price of FXI was $43.34 upon options expiration
The overall performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $12,300.00
= $41.00*300
Net Profit:
(a) Options Income: +$186.80
= ($.66*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (FXI closed above $41.00 strike price at Mar2015 expiration): +$0.00
= ($41.00-$41.00)*300 shares
Total Net Profit: +$186.80
= (+$186.80 +$0.00 +$0.00)
Absolute Return: +1.5%
= +$186.80/$12,300.00
Annualized Return: +55.4%
= (+$186.80/$12,300.00)*(365/10 days)
4. Pilgrim's Pride Corp. (PPC) -- Closed
The transactions were as follows:
03/05/2015 Sold 3 Pilgrims Pride Corp. Mar2015 $26.00 Puts @ $.42
Note: The price of PPC was $27.23 when this transaction was executed.
03/20/2015 3 PPC Mar2015 $26.00 Put options expired
Note: the price of PPC was $26.84 upon options expiration
The overall performance result (including commissions) for these transactions was:
100% Cash-Secured Cost Basis: $7,800.00
= $26.00*300
Note: the price of Pilgrims Pride was $27.23 when these Put options were sold.
Net Profit:
(a) Options Income: +$114.80
= ($.42*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (PPC was above $26.00 strike price at Mar 20th, 2015 expiration): +$0.00
= ($26.00-$26.00)*300 shares
Total Net Profit: +$114.80
= (+$114.80 +$0.00 +$0.00)
Absolute Return: +1.5%
= +$114.80/$7,800.00
= (+$114.80/$7,800.00)*(365/17 days)
5. United Continental Holdings Inc. (UAL) -- Closed
The transactions were as follows:
02/09/2015 Sold 3 UAL Mar2015 100% cash-secured $60.00 Put options @ $2.50
Note: The price of UAL was $65.60 when this transaction was executed.
03/20/2015 UAL Mar2015 $60.00 Put options expired
Note: the price of UAL was $69.45 upon options expiration
The overall performance result (including commissions) is as follows:
100% Cash-Secured Cost Basis: $18,000.00
= $60.00*300
Net Profit:
(a) Options Income: +$738.80
= ($2.50*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (UAL was above $60.00 strike price at Mar2015 expiration): +$0.00
= ($60.00-$60.00)*300 shares
Total Net Profit: +$738.80
= (+$738.80 +$0.00 +$0.00)
Absolute Return: +4.1%
= +$738.80/$18,000.00
Annualized Return: +36.5%
= (+$738.80/$18,000.00)*(365/41 days)
6. United Continental Holdings Inc. (UAL) -- Closed
The transactions were as follows:
03/06/2015 Sold 3 UAL 100% cash-secured $63.00 Put options @ $.92
Note: The price of UAL was $67.11 when this transaction was executed.
03/20/2015 UAL Mar2015 $63.00 Put options expired
Note: the price of UAL was $69.45 upon options expiration
The overall performance result (including commissions) is as follows:
100% Cash-Secured Cost Basis: $18,900.00
= $63.00*300
Net Profit:
(a) Options Income: +$264.80
= ($.92*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (UAL was above $63.00 strike price at Mar2015 expiration): +$0.00
= ($63.00-$63.00)*300 shares
Total Net Profit: +$264.80
= (+$264.80 +$0.00 +$0.00)
Absolute Return: +1.4%
= +$264.80/$18,900.00
Annualized Return: +34.1%
= (+$264.80/$18,900.00)*(365/15 days)
7. United States Steel Corp. (X) -- Closed
The transactions were as follows:
03/04/2015 Sold 3 United States Steel Corp. Mar2015 $21.00 Puts @ $.42
Note: The price of X was $22.20 when this transaction was executed.
03/20/2015 3 U.S. Steel Mar2015 $21.00 Put options expired
Note: the price of X was $23.18 upon options expiration
The overall performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $6,300.00
= $21.00*300
Note: the price of U.S. Steel was $22.20 when these Put options were sold.
Net Profit:
(a) Options Income: +$114.80
= ($.42*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (X was above $21.00 strike price at Mar 20th, 2015 expiration): +$0.00
= ($21.00-$21.00)*300 shares
Total Net Profit (X was above $21.00 strike price upon Mar2015 options expiration): +$114.80
= (+$114.80 +$0.00 +$0.00)
Absolute Return: +1.8%
= +$114.80/$6,300.00
= (+$114.80/$6,300.00)*(365/18 days)
8. VeriFone Systems Inc. (PAY) -- Closed
The transactions were as follows:
03/10/2015 Sold 3 PAY Mar2015 $32.00 100% cash-secured Put options @ $.50
Note: The price of PAY was $33.72 when this transaction was executed.
03/20/2015 3 PAY Mar2015 $32.00 Put options expired
Note: the price of PAY was $36.08 upon options expiration
The overall performance result (including commissions) for these transactions was:
100% Cash-Secured Cost Basis: $9,600.00
= $32.00*300
Net Profit:
(a) Options Income: +$138.80
= ($.50*300 shares) - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (PAY was above $32.00 strike price at Mar2015 expiration): +$0.00
= ($32.00-$32.00)*300 shares
Total Net Profit: +$138.80
= (+$138.80 +$0.00 +$0.00)
Absolute Return: +1.4%
= +$138.80/$9,600.00
Annualized Return: +48.0%
= (+$138.80/$9,600.00)*(365/11 days)
9. VMware Inc. (VMW) -- Closed
The transactions were as follows:
03/11/2015 Sold 2 VMW Mar2015 $80.00 100% cash-secured Put options @ $1.05
Note: The price of VMW was $80.82 when this transaction was executed.
03/20/2015 3 VMW Mar2015 $80.00 Put options expired
Note: the price of VMW was $82.82 upon options expiration
The overall performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $16,000.00
= $80.00*200
Net Profit:
(a) Options Income: +$199.55
= ($1.05*200 shares) - $10.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (VMW was above $80.00 strike price at Mar2015 expiration): +$0.00
= ($80.00-$80.00)*200 shares
Total Net Profit: +$199.55
= (+$199.55 +$0.00 +$0.00)
Absolute Return: +1.2%
= +$199.55/$16,000.00
Annualized Return: +45.5%
= (+$199.55/$16,000.00)*(365/10 days)
