The return-on-investment results for this Global Payments Inc. position was: +2.1% absolute return in 15 days (equivalent to a +51.0% annualized return-on-investment).
Global Payments Inc. (GPN) -- 100% Cash-Secured Puts Position Closed Out
12/6/2022 Sold 3 Global Payments December 16th, 2022 $95.00 100% Cash-Secured Put options @ $1.35 per share.
The Covered Calls Advisor does not use margin, so the detailed information on this position and the potential result detailed below reflect that this position was established using 100% cash securitization for the three Global Payments Put options sold.
12/16/2022 Three GPN Puts closed below the $95.00 strike price, so the 3 Put options expired and 300 shares of GPN were purchased at $95.00 in the Covered Calls Advisor Portfolio.
12/21/2022 Closed out this Global Payments position by selling the 300 shares @ $95.62.
The overall performance results (including commissions) were as follows:
100% Cash-Secured Puts Net Investment: $28,097.01
= ($95.00 - $1.35) * 200 shares + $2.01 commission
Net Profit:
(a) Options Income: +$402.99
= ($1.35 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Global Payments stock sold at $95.62 per share on 12/21/2022): +$186.00
= ($95.62 stock selling price - $95.00 stock purchase price) * 300 shares
Total Net Profit: +$588.99
= (+$402.99 options income +$0.00 dividend income +$186.00 capital appreciation)
Absolute Return-on-Investment: +2.1%
= +$588.99/$28,097.01
Annualized Return-on-Investment: +51.0%
= (+$588.99/$28,097.01) * (365/15 days)
