Smarter Investing With Covered Calls

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2011-02-27T13:08:00.000-08:00

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Returns for positions that closed in Feb 2009 - Summary

2009-02-20T23:30:00.000-08:00

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

2009-02-20T23:27:00.001-08:00

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

2009-02-20T23:25:00.001-08:00

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

2009-02-20T23:23:00.001-08:00

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

2009-02-20T23:21:00.001-08:00

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

2009-02-20T23:19:00.001-08:00

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

2009-02-20T23:17:00.001-08:00

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

2009-02-20T23:15:00.001-08:00

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

2009-02-20T23:12:00.001-08:00

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

2009-02-20T23:08:00.001-08:00

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

2009-02-20T23:06:00.001-08:00

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

2009-02-20T23:03:00.001-08:00

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

2009-02-20T22:53:00.001-08:00

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

2009-02-20T22:51:00.001-08:00

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

2009-02-20T22:49:00.001-08:00

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

2009-02-20T22:47:00.001-08:00

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

2009-02-20T21:42:00.001-08:00

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

2009-02-20T21:40:00.001-08:00

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

2009-02-20T21:36:00.001-08:00

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

2009-02-20T21:34:00.001-08:00

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

2009-02-11T20:13:00.001-08:00

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

2009-02-11T20:10:00.001-08:00

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

2009-02-02T22:18:00.001-08:00

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

2009-02-02T22:11:00.000-08:00

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.