1. iShares MSCI South Korea Index ETF (EWY) Continuation Transaction
The following transaction was made today to establish a covered calls position against the 800 shares of EWY:
01/25/08 Covered Calls Transaction -- STO 8 Feb08 62 Calls @ $1.00
The Transactions History to date is as follows:
11/28/07 Bought 800 EWY @ $65.22
11/28/07 Sold 8 EWY Dec07 68 Calls @ $1.75
12/15/07 Dec07 Options Expiration Date – EWY closed below the strike price
12/24/07 Ex-Dividend Date $.369 * 800 shares
01/25/08 Covered Calls Continuation Transaction -- STO 8 Feb08 62 Calls @ $1.00
Note: Price of EWY was $57.75 when calls were written today.
The overall performance results(including commissions)for the EWY transactions through the Feb08 expiration would be as follows:
Stock Purchase Cost: $52,185.95
($65.22*800+$9.95 commission)
Net Profit:
(a) Options Income: $2,168.10 (800*$1.75 + 800*$1.00 - 2*$15.95 commissions)
(b) Dividend Income: $295.20 (800*$.369)
(c) Capital Appreciation (If stock price unchanged from $57.75): -$5,995.90
= ($57.75-$65.22)*800 - 2*$9.95 commissions
(c) Capital Appreciation (If exercised): -$2,595.90
= ($62.00-$65.22)*800 - 2*$9.95 commissions
Total Net Profit(If stock price unchanged at $57.75): -$3,532.60
= ($2,168.10+$295.20-$5,995.90)
Total Net Profit(If stock price exercised at $62.00): -$132.60
= ($2,168.10+$295.20-$2,595.90)
Annualized Return If Unchanged (ARIU) -30.9% (-$3,532.60/$52,185.95)*(365/80)
Annualized Return If Exercised (ARIE) -1.2% (-$132.60/$52,185.95)*(365/80)
2. Halliburton (HAL) Continuation Transaction
The following transaction was made today to continue the covered calls written against the 700 shares of HAL:
01/25/08 Covered Calls Continuation Transaction -- STO 7 Feb08 35 Calls @ $1.15
The Transactions History to date is as follows:
10/24/07 Initial Stock Position -- Bought 700 HAL @ $40.01
10/24/07 Initial Call Options -- Sold 7 HAL Nov07 40 Calls @ $1.25
11/17/07 Nov07 Option Expiration Date – HAL closed below the strike price at $37.02
11/19/07 Covered Calls Continuation Transaction -- STO 5 Dec07 37.5 Calls @ $.85
11/29/07 Ex-Dividend Date -- $.09*$700
12/22/07 Dec07 Option Expiration Date – HAL closed below the strike price at $37.29
12/26/07 Covered Calls Continuation Transaction -- STO 7 Jan08 37.5 Calls @ $1.05
01/19/08 Jan08 Options Expiration Date – HAL closed below the strike price
01/25/08 Covered Calls Continuation Transaction -- STO 7 Feb08 35 Calls @ $1.15
Note: The price of HAL when the options were written on 1/25/08 was $34.25
The overall performance results(including commissions)for the HAL transactions
through Feb08 expiration would be as follows:
Stock Purchase Cost: $28,016.95
($40.01*700+$9.95 commission)
Net Profit:
(a) Options Income: $2,949.20 (700*$1.25 + 700*.85 + 700*1.05 + 700*1.15 - 4*15.20 commissions)
(b) Dividend Income: $63.00 ($.09*700)
(c) Capital Appreciation (If stock price unchanged from $34.25): -$4,051.90
= ($34.25-$40.01)*700 - 2*9.95 commissions
(c) Capital Appreciation (If exercised): -$3,526.90
= ($35.00-$40.01)*700 - 2*9.95 commissions
Total Net Profit(If stock price unchanged at $34.25): -$1,039.70
= ($2,949.20+$63.00-$4,051.90)
Total Net Profit(If stock price exercised at $35.00): -$514.70
= ($2,949.20+$63.00-$3,526.90)
Annualized Return If Unchanged (ARIU) -11.8% (-$1,039.70/$28,016.95)*(365/115)
Annualized Return If Exercised (ARIE) -5.8% (-$514.70/$28,016.95)*(365/115)
