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Friday, April 3, 2015

Short 100% Cash-Secured Puts Position in Apple Inc. -- Closed

The Covered Calls Advisor's short position in two Apple Inc. (Symbol AAPL) April 2nd, 2015 $122.00 Weekly Put options expired yesterday since Apple Inc. closed above the $122.00 strike price. This result achieved the maximum profit potential from this Weekly position of +0.7% absolute return (+26.8% annualized) for the 9 days holding period. This transaction and the return-on-investment result is detailed below

1. Apple Inc. (AAPL)
The transactions were as follows:
03/25/2015 Sold 2 AAPL Apr 2nd $122.00 Put Options @ $.86
Note: the price of AAPL was $124.46 today when these options were sold.
04/02/2015 2 short AAPL options expired
Note: the price of AAPL was $125.32 upon options expiration 

The overall performance result (including commissions) for these short Apple Inc. Put options was:
Stock Purchase Cost: $24,408.95
= ($122.00*200+$8.95 commission)

Net Profit:
(a) Options Income: +$161.55
= 200*$.86 - $10.45 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation = +$0.00 (short Put options expired)


Total Net Profit: +$161.55
= (+$161.55 +$0.00 +$0.00)

Absolute Return: +0.7%
= +$161.55/$24,408.95
Annualized Return: +26.8%
= (+$161.55/$24,408.95)*(365/9 days)