Returns for positions that closed in Feb 2009 - Summary

19 positions closed in Feb 2009. Here is the summary.

• Total money invested - 352381
• Total money collected - 366916
• Gains - 14535
• Percentage gains = 4.12%

The recent drop in banking sector did cause some damage. But not terribly bad overall.

Closed (WFT) February 2009 covered call position

The (WFT) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20081226
• Ticker = (WFT)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 9.3, 7.5, 2.5, 13600.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 2000
• Option strike price = 7.5
• Total money received = 15000.0

Option Leg (Buy)

• Call Symbol = WFTBP
• Strike price = 7.5
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 13600.0
• Absolute returns = 1400.0
• Percentage returns = 10.29%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 7.5 * 2000 = 15000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 15000.0 - 0.0 = 15000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 15000.0 - 13600.0 = 1400.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1400.0/13600.0) = 10.29%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (FMCN) February 2009 covered call position

The (FMCN) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090108
• Ticker = (FMCN)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 8.99, 7.5, 2.05, 13880.0)

The position was closed because options expired out of money.

Stock Leg (Sell)

• Number of shares sold = 2000
• Price per share = 7.18
• Total money received = 14360.0

Option Leg (Buy)

• Call Symbol = FUOBU
• Strike price = 7.5
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 13880.0
• Absolute returns = 480.0
• Percentage returns = 3.45%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = price per share * number of shares
Money received = 7.18 * 2000 = 14360.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 14360.0 - 0.0 = 14360.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 14360.0 - 13880.0 = 480.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (480.0/13880.0) = 3.45%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (FCX) February 2009 covered call position

The (FCX) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090108
• Ticker = (FCX)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (1000, 29.25, 25.0, 6.0, 23250.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 1000
• Option strike price = 25.0
• Total money received = 25000.0

Option Leg (Buy)

• Call Symbol = FCXBE
• Strike price = 25.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 23250.0
• Absolute returns = 1750.0
• Percentage returns = 7.52%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 25.0 * 1000 = 25000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 25000.0 - 0.0 = 25000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 25000.0 - 23250.0 = 1750.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1750.0/23250.0) = 7.52%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (MCO) February 2009 covered call position

The (MCO) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20081224
• Ticker = (MCO)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (1000, 20.88, 17.5, 4.9, 15980.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 1000
• Option strike price = 17.5
• Total money received = 17500.0

Option Leg (Buy)

• Call Symbol = MCOBW
• Strike price = 17.5
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 15980.0
• Absolute returns = 1520.0
• Percentage returns = 9.51%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 17.5 * 1000 = 17500.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 17500.0 - 0.0 = 17500.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 17500.0 - 15980.0 = 1520.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1520.0/15980.0) = 9.51%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (JWN) February 2009 covered call position

The (JWN) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090109
• Ticker = (JWN)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 13.96, 12.5, 2.45, 23020.0)

The position was closed because options expired out of money.

Stock Leg (Sell)

• Number of shares sold = 2000
• Price per share = 11.89
• Total money received = 23780.0

Option Leg (Buy)

• Call Symbol = JWNBV
• Strike price = 12.5
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 23020.0
• Absolute returns = 760.0
• Percentage returns = 3.3%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = price per share * number of shares
Money received = 11.89 * 2000 = 23780.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 23780.0 - 0.0 = 23780.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 23780.0 - 23020.0 = 760.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (760.0/23020.0) = 3.3%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (TSO) February 2009 covered call position

The (TSO) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20081224
• Ticker = (TSO)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 11.89, 10.0, 2.9, 17980.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 2000
• Option strike price = 10.0
• Total money received = 20000.0

Option Leg (Buy)

• Call Symbol = TSOBY
• Strike price = 10.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 17980.0
• Absolute returns = 2020.0
• Percentage returns = 11.23%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 10.0 * 2000 = 20000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 20000.0 - 0.0 = 20000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 20000.0 - 17980.0 = 2020.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2020.0/17980.0) = 11.23%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (ICE) February 2009 covered call position

The (ICE) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090107
• Ticker = (ICE)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (400, 64.08, 55.0, 13.4, 20272.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 400
• Option strike price = 55.0
• Total money received = 22000.0

Option Leg (Buy)

• Call Symbol = ICEBK
• Strike price = 55.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 20272.0
• Absolute returns = 1728.0
• Percentage returns = 8.52%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 55.0 * 400 = 22000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 22000.0 - 0.0 = 22000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 22000.0 - 20272.0 = 1728.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1728.0/20272.0) = 8.52%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (AMZN) February 2009 covered call position

The (AMZN) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090129
• Ticker = (AMZN)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (600, 50.0, 45.0, 7.1, 25740.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 600
• Option strike price = 45.0
• Total money received = 27000.0

Option Leg (Buy)

• Call Symbol = ZQNBI
• Strike price = 45.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 25740.0
• Absolute returns = 1260.0
• Percentage returns = 4.89%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 45.0 * 600 = 27000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 27000.0 - 0.0 = 27000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 27000.0 - 25740.0 = 1260.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1260.0/25740.0) = 4.89%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (PLD) February 2009 covered call position

The (PLD) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20081230
• Ticker = (PLD)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 12.36, 10.0, 3.5, 17720.0)

The position was closed because options expired out of money.

Stock Leg (Sell)

• Number of shares sold = 2000
• Price per share = 6.93
• Total money received = 13860.0

Option Leg (Buy)

• Call Symbol = PADBB
• Strike price = 10.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 17720.0
• Absolute returns = -3860.0
• Percentage returns = -21.78%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = price per share * number of shares
Money received = 6.93 * 2000 = 13860.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 13860.0 - 0.0 = 13860.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 13860.0 - 17720.0 = -3860.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (-3860.0/17720.0) = -21.78%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (CNX) February 2009 covered call position

The (CNX) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090105
• Ticker = (CNX)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (800, 34.87, 30.0, 7.2, 22136.0)

The position was closed because options expired out of money.

Stock Leg (Sell)

• Number of shares sold = 800
• Price per share = 27.23
• Total money received = 21784.0

Option Leg (Buy)

• Call Symbol = CNXBF
• Strike price = 30.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 22136.0
• Absolute returns = -352.0
• Percentage returns = -1.59%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = price per share * number of shares
Money received = 27.23 * 800 = 21784.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 21784.0 - 0.0 = 21784.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 21784.0 - 22136.0 = -352.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (-352.0/22136.0) = -1.59%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (SNDK) February 2009 covered call position

The (SNDK) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090109
• Ticker = (SNDK)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 12.3, 11.0, 2.42, 19760.0)

The position was closed because options expired out of money.

Stock Leg (Sell)

• Number of shares sold = 2000
• Price per share = 9.36
• Total money received = 18720.0

Option Leg (Buy)

• Call Symbol = SWQBM
• Strike price = 11.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 19760.0
• Absolute returns = -1040.0
• Percentage returns = -5.26%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = price per share * number of shares
Money received = 9.36 * 2000 = 18720.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 18720.0 - 0.0 = 18720.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 18720.0 - 19760.0 = -1040.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (-1040.0/19760.0) = -5.26%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (M) February 2009 covered call position

The (M) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20081229
• Ticker = (M)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 8.89, 7.5, 2.2, 13380.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 2000
• Option strike price = 7.5
• Total money received = 15000.0

Option Leg (Buy)

• Call Symbol = MBU
• Strike price = 7.5
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 13380.0
• Absolute returns = 1620.0
• Percentage returns = 12.1%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 7.5 * 2000 = 15000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 15000.0 - 0.0 = 15000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 15000.0 - 13380.0 = 1620.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1620.0/13380.0) = 12.1%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (WFR) February 2009 covered call position

The (WFR) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090113
• Ticker = (WFR)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 14.78, 12.5, 3.2, 23160.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 2000
• Option strike price = 12.5
• Total money received = 25000.0

Option Leg (Buy)

• Call Symbol = CJCBV
• Strike price = 12.5
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 23160.0
• Absolute returns = 1840.0
• Percentage returns = 7.94%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 12.5 * 2000 = 25000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 25000.0 - 0.0 = 25000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 25000.0 - 23160.0 = 1840.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1840.0/23160.0) = 7.94%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (AKS) February 2009 covered call position

The (AKS) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20081230
• Ticker = (AKS)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (2000, 8.85, 7.5, 2.2, 13300.0)

The position was closed because options expired out of money.

Stock Leg (Sell)

• Number of shares sold = 2000
• Price per share = 6.9
• Total money received = 13800.0

Option Leg (Buy)

• Call Symbol = ASJBU
• Strike price = 7.5
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 13300.0
• Absolute returns = 500.0
• Percentage returns = 3.75%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = price per share * number of shares
Money received = 6.9 * 2000 = 13800.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 13800.0 - 0.0 = 13800.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 13800.0 - 13300.0 = 500.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (500.0/13300.0) = 3.75%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (MET) February 2009 covered call position

The (MET) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090120
• Ticker = (MET)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (1000, 23.82, 20.0, 5.6, 18220.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 1000
• Option strike price = 20.0
• Total money received = 20000.0

Option Leg (Buy)

• Call Symbol = METBD
• Strike price = 20.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 18220.0
• Absolute returns = 1780.0
• Percentage returns = 9.76%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 20.0 * 1000 = 20000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 20000.0 - 0.0 = 20000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 20000.0 - 18220.0 = 1780.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1780.0/18220.0) = 9.76%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (AAPL) February 2009 covered call position

The (AAPL) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090121
• Ticker = (AAPL)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (300, 82.83, 80.0, 7.4, 22629.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 300
• Option strike price = 80.0
• Total money received = 24000.0

Option Leg (Buy)

• Call Symbol = QAABP
• Strike price = 80.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 22629.0
• Absolute returns = 1371.0
• Percentage returns = 6.05%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 80.0 * 300 = 24000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 24000.0 - 0.0 = 24000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 24000.0 - 22629.0 = 1371.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1371.0/22629.0) = 6.05%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (AVB) February 2009 covered call position

The (AVB) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090102
• Ticker = (AVB)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (400, 61.26, 50.0, 15.2, 18424.0)

The position was closed because options expired out of money.

Stock Leg (Sell)

• Number of shares sold = 400
• Price per share = 44.03
• Total money received = 17612.0

Option Leg (Buy)

• Call Symbol = AZBBJ
• Strike price = 50.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 18424.0
• Absolute returns = -812.0
• Percentage returns = -4.4%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = price per share * number of shares
Money received = 44.03 * 400 = 17612.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 17612.0 - 0.0 = 17612.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 17612.0 - 18424.0 = -812.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (-812.0/18424.0) = -4.4%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (CHK) February 2009 covered call position

The (CHK) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20090102
• Ticker = (CHK)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (1000, 16.92, 15.0, 3.1, 13820.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 1000
• Option strike price = 15.0
• Total money received = 15000.0

Option Leg (Buy)

• Call Symbol = CHKBC
• Strike price = 15.0
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 13820.0
• Absolute returns = 1180.0
• Percentage returns = 8.53%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 15.0 * 1000 = 15000.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 15000.0 - 0.0 = 15000.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 15000.0 - 13820.0 = 1180.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1180.0/13820.0) = 8.53%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Closed (NOV) February 2009 covered call position

The (NOV) February 2009 covered calls position was closed on February 20, 2009. Here are the details.

• Closing Transaction Date = 20090220
• Opening Transaction Date = 20081223
• Ticker = (NOV)
• Opening Trade Details (Num shares, Price per share, Option strike price, Option premium, Initial investment) = (1000, 22.21, 17.5, 6.1, 16110.0)

The position was closed because options expired in the money and were called away.

Stock Leg (Sell)

• Number of shares sold = 1000
• Option strike price = 17.5
• Total money received = 17500.0

Option Leg (Buy)

• Call Symbol = NOVBW
• Strike price = 17.5
• Strike date = 20090220
• Total money spent = 0.0

Return on investment

• Initial investment = 16110.0
• Absolute returns = 1390.0
• Percentage returns = 8.62%

Detailed Calculations & Explanation

Stock Leg (Sell)
Money received = option strike price * number of shares
Money received = 17.5 * 1000 = 17500.0

Option Leg (Buy)
No need to close option position.
Money spent = 0

Transaction
Total money received = Money received - Money spent
Total money received = 17500.0 - 0.0 = 17500.0

ROI calculations
Absolute returns = Total money received - Initial investment
Absolute returns = 17500.0 - 16110.0 = 1390.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1390.0/16110.0) = 8.62%

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Opened (BAC) March 2009 covered call position for BK OF AMERICA CP

A new covered calls position was established on February 11, 2009 with purchase of 5000 shares of "BK OF AMERICA CP" (BAC). Here are the details.

• Transaction Date = 20090211
• Ticker = (BAC)
• Company Name = BK OF AMERICA CP

Stock Leg (Buy)

• Number of shares purchased = 5000
• Price per share = 6.07
• Total money spent = 30350.0

Option Leg (Sell)

• Call Symbol = BYOCD
• Number of sold calls = 50
• Strike price = 4.0
• Strike date = 20090320
• Call premium = 2.49
• Total money received = 12450.0
• Max. days for which position may stay open = 38

Return on investment (If calls are exercised)

• Initial investment = 17900.0
• Absolute return = 2100.0
• Percentage return = 11.73%
• Annualized percentage return = 112.66%

Break even Information

• Break even price point = 3.58
• Break even buffer percentage = 41.02%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 6.07 * 5000 = 30350.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 50 * 100 * 2.49 = 12450.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 30350.0 - 12450.0 = 17900.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 50 * 100 * 4.0 = 20000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 20000.0 - 17900.0 = 2100.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2100.0/17900.0) = 11.73%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 11.73 * 365/38 = 112.66%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 17900.0 / 5000 = 3.58
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (6.07 - 3.58) / 6.07 = 41.02%
This means that this position can weather a 41.02% drop in stock's price before losing any money.

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Opened (TXT) March 2009 covered call position for TEXTRON INC

A new covered calls position was established on February 11, 2009 with purchase of 4000 shares of "TEXTRON INC" (TXT). Here are the details.

• Transaction Date = 20090211
• Ticker = (TXT)
• Company Name = TEXTRON INC

Stock Leg (Buy)

• Number of shares purchased = 4000
• Price per share = 6.76
• Total money spent = 27040.0

Option Leg (Sell)

• Call Symbol = TXYCA
• Number of sold calls = 40
• Strike price = 5.0
• Strike date = 20090320
• Call premium = 2.25
• Total money received = 9000.0
• Max. days for which position may stay open = 38

Return on investment (If calls are exercised)

• Initial investment = 18040.0
• Absolute return = 1960.0
• Percentage return = 10.86%
• Annualized percentage return = 104.31%

Break even Information

• Break even price point = 4.51
• Break even buffer percentage = 33.28%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 6.76 * 4000 = 27040.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 40 * 100 * 2.25 = 9000.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 27040.0 - 9000.0 = 18040.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 40 * 100 * 5.0 = 20000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 20000.0 - 18040.0 = 1960.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1960.0/18040.0) = 10.86%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 10.86 * 365/38 = 104.31%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 18040.0 / 4000 = 4.51
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (6.76 - 4.51) / 6.76 = 33.28%
This means that this position can weather a 33.28% drop in stock's price before losing any money.

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Opened (STT) March 2009 covered call position for STATE STREET CP

A new covered calls position was established on February 2, 2009 with purchase of 1000 shares of "STATE STREET CP" (STT). Here are the details.

• Transaction Date = 20090202
• Ticker = (STT)
• Company Name = STATE STREET CP

Stock Leg (Buy)

• Number of shares purchased = 1000
• Price per share = 23.51
• Total money spent = 23510.0

Option Leg (Sell)

• Call Symbol = STTCW
• Number of sold calls = 10
• Strike price = 17.5
• Strike date = 20090320
• Call premium = 7.4
• Total money received = 7400.0
• Max. days for which position may stay open = 47

Return on investment (If calls are exercised)

• Initial investment = 16110.0
• Absolute return = 1390.0
• Percentage return = 8.62%
• Annualized percentage return = 66.94%

Break even Information

• Break even price point = 16.11
• Break even buffer percentage = 31.47%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 23.51 * 1000 = 23510.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 10 * 100 * 7.4 = 7400.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 23510.0 - 7400.0 = 16110.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 10 * 100 * 17.5 = 17500.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 17500.0 - 16110.0 = 1390.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1390.0/16110.0) = 8.62%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 8.62 * 365/47 = 66.94%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 16110.0 / 1000 = 16.11
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (23.51 - 16.11) / 23.51 = 31.47%
This means that this position can weather a 31.47% drop in stock's price before losing any money.

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Opened (BAC) March 2009 covered call position for BK OF AMERICA CP

A new covered calls position was established on February 2, 2009 with purchase of 4000 shares of "BK OF AMERICA CP" (BAC). Here are the details.

• Transaction Date = 20090202
• Ticker = (BAC)
• Company Name = BK OF AMERICA CP

Stock Leg (Buy)

• Number of shares purchased = 4000
• Price per share = 6.0
• Total money spent = 24000.0

Option Leg (Sell)

• Call Symbol = BYOCD
• Number of sold calls = 40
• Strike price = 4.0
• Strike date = 20090320
• Call premium = 2.51
• Total money received = 10040.0
• Max. days for which position may stay open = 47

Return on investment (If calls are exercised)

• Initial investment = 13960.0
• Absolute return = 2040.0
• Percentage return = 14.61%
• Annualized percentage return = 113.46%

Break even Information

• Break even price point = 3.49
• Break even buffer percentage = 41.83%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 6.0 * 4000 = 24000.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 40 * 100 * 2.51 = 10040.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 24000.0 - 10040.0 = 13960.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 40 * 100 * 4.0 = 16000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 16000.0 - 13960.0 = 2040.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (2040.0/13960.0) = 14.61%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 14.61 * 365/47 = 113.46%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 13960.0 / 4000 = 3.49
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (6.0 - 3.49) / 6.0 = 41.83%
This means that this position can weather a 41.83% drop in stock's price before losing any money.

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Good suggestions

Check these out. These points really do make a lot of sense. We are treading in a really uncertain territory here and although that happens to be a rich area for option traders, if not done properly, you can get burned easily.
By following a few simple rules, we can try our best to minimize damage.

Good rules to follow.

Jan 2009 Portfolio Performance Report - Summary

Here is the status of the portfolio at the end of Jan 2009.

Portfolio Details

• Inception date = 20081222
• Period start date = 20090101
  
• Period end date = 20090131
  
• Portfolio value at start = 100000
• Free cash at end of period = 372345
• Value of open positions at end = 631443
• Total Value at end = Cash at end + Value of open positions = 1003788

Return

• Jan 2009 Return = 0.38%
  
• Percentage return since inception = 0.38%

The current portfolio value reports can be accessed here.

Opened (BAC) March 2009 covered call position for BK OF AMERICA CP

A new covered calls position was established on January 29, 2009 with purchase of 3000 shares of "BK OF AMERICA CP" (BAC). Here are the details.

• Transaction Date = 20090129
• Ticker = (BAC)
• Company Name = BK OF AMERICA CP

Stock Leg (Buy)

• Number of shares purchased = 3000
• Price per share = 6.78
• Total money spent = 20340.0

Option Leg (Sell)

• Call Symbol = BYOCE
• Number of sold calls = 30
• Strike price = 5.0
• Strike date = 20090320
• Call premium = 2.4
• Total money received = 7200.0005
• Max. days for which position may stay open = 51

Return on investment (If calls are exercised)

• Initial investment = 13140.0
• Absolute return = 1860.0
• Percentage return = 14.15%
• Annualized percentage return = 101.26%

Break even Information

• Break even price point = 4.38
• Break even buffer percentage = 35.39%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 6.78 * 3000 = 20340.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 30 * 100 * 2.4 = 7200.0005

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 20340.0 - 7200.0005 = 13140.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 30 * 100 * 5.0 = 15000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 15000.0 - 13140.0 = 1860.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1860.0/13140.0) = 14.15%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 14.15 * 365/51 = 101.26%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 13140.0 / 3000 = 4.38
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (6.78 - 4.38) / 6.78 = 35.39%
This means that this position can weather a 35.39% drop in stock's price before losing any money.

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Opened (PRU) June 2009 covered call position for PRUDENTIAL FINCL

A new covered calls position was established on January 29, 2009 with purchase of 1500 shares of "PRUDENTIAL FINCL " (PRU). Here are the details.

• Transaction Date = 20090129
• Ticker = (PRU)
• Company Name = PRUDENTIAL FINCL

Stock Leg (Buy)

• Number of shares purchased = 1500
• Price per share = 28.62
• Total money spent = 42930.0

Option Leg (Sell)

• Call Symbol = PRUFX
• Number of sold calls = 15
• Strike price = 20.0
• Strike date = 20090619
• Call premium = 12.4
• Total money received = 18600.0
• Max. days for which position may stay open = 142

Return on investment (If calls are exercised)

• Initial investment = 24330.0
• Absolute return = 5670.0
• Percentage return = 23.3%
• Annualized percentage return = 59.89%

Break even Information

• Break even price point = 16.22
• Break even buffer percentage = 43.32%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 28.62 * 1500 = 42930.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 15 * 100 * 12.4 = 18600.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 42930.0 - 18600.0 = 24330.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 15 * 100 * 20.0 = 30000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 30000.0 - 24330.0 = 5670.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (5670.0/24330.0) = 23.3%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 23.3 * 365/142 = 59.89%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 24330.0 / 1500 = 16.22
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (28.62 - 16.22) / 28.62 = 43.32%
This means that this position can weather a 43.32% drop in stock's price before losing any money.

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Opened (AMZN) February 2009 covered call position for Amazon.com, Inc.

A new covered calls position was established on January 29, 2009 with purchase of 600 shares of "Amazon.com, Inc." (AMZN). Here are the details.

• Transaction Date = 20090129
• Ticker = (AMZN)
• Company Name = Amazon.com, Inc.

Stock Leg (Buy)

• Number of shares purchased = 600
• Price per share = 50.0
• Total money spent = 30000.0

Option Leg (Sell)

• Call Symbol = ZQNBI
• Number of sold calls = 6
• Strike price = 45.0
• Strike date = 20090220
• Call premium = 7.1
• Total money received = 4260.0
• Max. days for which position may stay open = 23

Return on investment (If calls are exercised)

• Initial investment = 25740.0
• Absolute return = 1260.0
• Percentage return = 4.89%
• Annualized percentage return = 77.6%

Break even Information

• Break even price point = 42.9
• Break even buffer percentage = 14.19%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 50.0 * 600 = 30000.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 6 * 100 * 7.1 = 4260.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 30000.0 - 4260.0 = 25740.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 6 * 100 * 45.0 = 27000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 27000.0 - 25740.0 = 1260.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (1260.0/25740.0) = 4.89%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 4.89 * 365/23 = 77.6%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 25740.0 / 600 = 42.9
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (50.0 - 42.9) / 50.0 = 14.19%
This means that this position can weather a 14.19% drop in stock's price before losing any money.

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.

Opened (AFL) May 2009 covered call position for A F L A C INC

A new covered calls position was established on January 26, 2009 with purchase of 2000 shares of "A F L A C INC" (AFL). Here are the details.

• Transaction Date = 20090126
• Ticker = (AFL)
• Company Name = A F L A C INC

Stock Leg (Buy)

• Number of shares purchased = 2000
• Price per share = 19.62
• Total money spent = 39240.0

Option Leg (Sell)

• Call Symbol = AFLEV
• Number of sold calls = 20
• Strike price = 12.5
• Strike date = 20090515
• Call premium = 8.8
• Total money received = 17600.0
• Max. days for which position may stay open = 110

Return on investment (If calls are exercised)

• Initial investment = 21640.0
• Absolute return = 3360.0
• Percentage return = 15.52%
• Annualized percentage return = 51.49%

Break even Information

• Break even price point = 10.82
• Break even buffer percentage = 44.85%

Detailed Calculations & Explanation

Stock Leg (Buy)
Total money spent = price per share * number of shares
Total money spent = 19.62 * 2000 = 39240.0

Option Leg (Sell)
Total money received = number of sold calls * 100 * call premium
Total money received = 20 * 100 * 8.8 = 17600.0

Transaction
Initial investment = Total money spent - Total money received
Initial investment = 39240.0 - 17600.0 = 21640.0

ROI calculations (If calls get exercised)
Money received upon exercise = (number of sold calls * 100 * strike price)
Money received upon exercise = 20 * 100 * 12.5 = 25000.0
Absolute returns = Money received upon exercise - Initial investment
Absolute returns = 25000.0 - 21640.0 = 3360.0
Percentage returns = 100 * (Absolute Returns/Initial investment)
Percentage returns = 100 * (3360.0/21640.0) = 15.52%
Annualized percentage returns = Percentage returns * 365/Max. days for which position may stay open
Annualized percentage returns = 15.52 * 365/110 = 51.49%

Break Even Information
Break-even point = Initial investment / Number of shares
Break-even point = 21640.0 / 2000 = 10.82
Break-even buffer percentage = 100 * (Current price - Break-even point) / Current price
Break-even buffer percentage = 100 * (19.62 - 10.82) / 19.62 = 44.85%
This means that this position can weather a 44.85% drop in stock's price before losing any money.

The position will be watched closely and liquidated if it starts to hover around the break even point. A fall in the stock price till the strike price is expected to be compensated linearly by corresponding fall in the option's premium (thereby maintaining a balance and avoiding drastic losses if liquidity is desired).

The current portfolio details can be accessed here.

Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.