As detailed below, the results were:
- Valero Energy Corp. -- A +1.5% absolute return-on-investment (equivalent to +32.4% on an annualized basis) for the 17 days this position was held.
- Wells Fargo Bank N.A. -- A +0.3% absolute return-on-investment (equivalent to +5.6% on an annualized basis) for the 17 days this position was held.
1. Valero Energy Corp. (VLO) -- Covered Calls Position Closed
The transactions were: 8/02/2019 Bought 200 shares of Valero @ $81.49 per share
8/02/2019 Sold 2 Valero August 16th, 2019 $80.00 Call options @ $2.36 per share
Note: This was a simultaneous buy/write transaction.
08/05/2019 Ex-dividend of $.90 per share
08/16/2019 Valero shares closed at $78.12 which was below the $80.00 strike price, so Call options expired and 200 shares of VLO stock were retained in the Covered Calls Advisor Portfolio
08/19/2019 Sold 200 shares VLO stock at $79.45 to close out position
The overall performance result (including commissions) was as follows:
Covered Calls Cost Basis: $15,832.29
= ($81.49 - $2.36)* 200 shares + $6.29 commissions
Net Profit Components:
(a) Options Income: +$472.00
= ($2.36 * 200 shares)
(b) Dividend Income: +$180.00
= $.90 x 200 shares
(c) Capital Appreciation: -$412.95
= ($79.45 -$81.49) * 200 shares - $4.95 commission
Total Net Profit: +$239.05
= (+$472.00 options income +$180.00 dividend income -$412.95 capital appreciation)
Absolute Return: +1.5%
= +$239.05/$15,832.29
Equivalent Annualized Return: +32.4%
= (+$239.05/$15,832.29)*(365/17 days)
2. Wells Fargo Bank N.A. (WFC) -- Covered Calls Position Closed
08/02/2019 Bought 500 shares of Wells Fargo stock @ $46.72 per share
08/02/2019 Sold 5 Wells Fargo Aug 16th, 2019 $46.00 Call options @ $1.09 per share
Note: this was a simultaneous Buy/Write transaction
08/08/2019 Ex-dividend of $.51 per share
08/16/2019 Wells Fargo shares closed at $44.39 which was below the $46.00 strike price, so Call options expired and 500 shares of WFC stock were retained in the Covered Calls Advisor Portfolio
08/19/2019 Sold 500 shares WFC stock at $45.25 to close out position
The overall performance result (including commissions) was as follows:
Covered Calls Cost Basis: $22,823.30
= ($46.72 - $1.09) * 500 shares + $8.30 commission
Net Profit Components:
(a) Options Income: +$545.00
= ($1.09 * 500 shares)
(b) Dividend Income: +$255.00
= $.51 x 500 shares
(c) Capital Appreciation: -$739.95
= ($45.25 -$46.72) * 500 shares - $4.95 commission
Total Net Profit: +$60.05
= (+$545.00 options income +$255.00 dividend income -$739.95 capital appreciation)
Absolute Return: +0.3%
= +$60.05/$22,823.30
Equivalent Annualized Return: +5.6%
= (+$60.05/$22,823.30)*(365/17 days)
