Continuation of Agnico Eagle Mines and Alibaba Covered Calls Positions

The Covered Calls Advisor Portfolio held five positions at the Dec2016 options expiration.  Three of these positions were assigned upon expiration and the maximum return-on-investment results were achieved: Link
For the other two positions [Agnico Eagle Mines Ltd. (500 shares) and Alibaba Group Holdings (400 shares)] the price of the equities closed below their strike prices, so the options expired worthless and the long shares were retained in the Portfolio.  Today, covered calls were established to continue these two holdings as follows:

1. Agnico Eagle Mines (AEM) -- Continuing Covered Calls Position
The transactions to date are as follows:
11/16/2016 Sold 5 Dec2016 $43.00 Puts @ $1.95
Note: The price of Agnico Eagle was $43.93 when this transaction was executed.
12/16/2016 5 Put options exercised and 500 shares AEM purchased at $43.00 strike price.
12/29/2016 Sold 5 Jan2017 AEM $42.50 Call options @ $1.60 when stock price was $42.10

The Covered Calls Advisor does not use margin, so the detailed information on this position and some potential results shown below reflect the fact that this position was established using 100% cash securitization for the five Put options sold.

A possible overall performance result (including commissions) for this AEM position is as follows:
Stock Purchase Cost: $21,507.95
= ($43.00*500+$7.95 commission)

Net Profit:
(a) Options Income: +$1,751.60
= ($1.95 + $1.60)*500 shares - 2*$11.70 commissions
(b) Dividend Income: +$0.00
= ($0.00 dividend per share x 500 shares)

(c) Capital Appreciation (If stock assigned at $42.50 at Jan 20, 2017 expiration): -$257.95
+($42.50-$43.00)*500 - $7.95 commissions

Total Net Profit (If stock assigned at $42.50 at Jan 20, 2017 expiration): +$1,493.65

= (+$1,751.60 +$0.00 -$257.95)

Absolute Return (If stock assigned at $42.50 at Jan 20, 2017 expiration): +6.9%

= +$1,493.65/$21,507.95

Annualized Return (If stock assigned at $42.50 at Jan 20, 2017 expiration): +39.0%

= (+$1,493.65/$21,507.95)*365/65 days

2. Alibaba Group Holdings (BABA) -- Continuation of Covered Calls Position
The transactions to-date are:
10/26/2016 Sold 4 Alibaba (BABA) Nov2016 $95.00 100% Cash-Secured Put options @ $1.25
11/18/2016 4 BABA Puts assigned and 400 shares of Alibaba purchased at $95.00
11/21/2016 Sold 4 BABA Dec2016 $95.00 Call options @ $2.26
Note: the price of BABA was $94.27 when these Call options were sold
12/16/2016 4 BABA Call options expired worthless
12/29/2016 Sold 4 Jan2017 BABA $92.50 Call options @ $.72 when stock price was $88.05

A possible overall performance result (including commissions) for this BABA position is as follows:
Stock Purchase Cost: $38,007.95
= ($95.00*400+$7.95 commission)

Net Profit:
(a) Options Income: +$1,659.15
= ($1.25 + $2.26 + $.72) * 400 shares - 3*$10.95 commissions
(b) Dividend Income: +$0.00
= ($0.00 dividend per share x 400 shares)

(c) Capital Appreciation (If stock assigned at $92.50 at Jan 20, 2017 expiration): -$1,007.95
+($92.50-$95.00)*500 - $7.95 commissions

Total Net Profit (If stock assigned at $92.50 at Jan 20, 2017 expiration): +$651.20

= (+$1,659.15 +$0.00 -$1,007.95)

Absolute Return (If BABA assigned at $92.50 at Jan 20, 2017 expiration): +1.7%

= +$651.20/$38,007.95

Annualized Return: +7.3%

= (+$1,493.65/$21,507.95)*365/86 days

The current holdings for these two positions are shown in the right sidebar of this blog.