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Sunday, April 17, 2011

April 2011 Expiration Transactions

The Covered Calls Advisor Portfolio (CCAP) contained a total of eleven covered calls positions with April 2011 expirations, with the following results:

- Six covered calls positions (International Paper, iShares MSCI Brazil ETF, iShares MSCI China ETF, iShares MSCI Emerging Markets ETF, iShares MSCI South Korea ETF, and Sprint Nextel) finished in-the-money. The calls were exercised and the shares were called away.

The annualized return-on-investment results achieved on these six assigned positions were as follows:

1. International Paper Co. -- +57.1%

2. iShares MSCI Brazil ETF -- +40.7%

3. iShares MSCI China ETF -- +12.7%

4. iShares MSCI Emerging Markets ETF -- +22.1%

5. iShares MSCI South Korea ETF -- +64.8%

6. Sprint Nextel Corp. -- +50.1%

- The remaining five covered calls positions in the CCAP (Apple Inc., Best Buy Corp., Freeport McMoRan Copper and Gold Inc., Microsoft Corp., and Petrobras) ended out-of-the-money. Decisions will be made to either sell the equities, or to keep them and sell calls to establish May2011 covered call positions. The related transactions will be made this week and the actual transactions will be posted on this blog site on the same day they occur.


The overall performance results for the six assigned Apr2011 covered calls positions were as follows:

1. International Paper Co.(IP) -- Closed
The transactions history was as follows:
03/03/2011 Bought 700 IP @ $26.97
03/03/2011 Sold 7 IP Mar2011 $28.00 Calls @ $.36
03/19/2011 Mar2011 Options Expired
03/21/2011 Sold 7 IP Apr2011 $28.00 Calls @ $.52
Note: price of IP stock was $26.97 when these options were sold.
04/16/2011 Apr2011 IP Options Expired.
Note: the price of IP was $29.95 upon options expiration.

The overall performance results(including commissions) for the International Paper Co.(IP) transactions was as follows:
Stock Purchase Cost: $18,887.95
= ($26.97*700+$8.95 commission)

Net Profit:
(a) Options Income: +$587.60
= (700*($.36+$.52) - 2*$14.20 commissions)
(b) Dividend Income: $0.00
(c) Capital Appreciation (Stock assigned at $28.00): +$712.05
= ($28.00-$26.97)*700 - $8.95 commissions

Total Net Profit (Stock assigned at $28.00): +$1,299.65
= (+$587.60 +$0.00 +$712.05)

Absolute Return (Stock assigned at $28.00 at expiration): +6.9%
= +$1,299.65/$18,887.95
Annualized Return: +57.1%
= (+$1,299.65/$18,887.95)*(365/44 days)


2. iShares MSCI Brazil ETF (EWZ) -- Closed
The transactions history was as follows:
01/28/2011 Bought 200 EWZ @ $72.119
01/28/2011 Sold 2 EWZ Feb2011 $73.00 Calls @ $1.45
02/18/2011 Buy-to-Close (BTC) 2 PBR Feb2011 $73.00 Call Options @ $1.61
02/18/2011 Sell-to-Open (STO) 2 PBR Mar2011 $74.00 Call Options @ $2.32
03/19/2011 Mar2011 Options Expired
03/22/2011 Sold 2 EWZ Apr2011 $75.00 Calls @ $1.44
Note: price of EWZ was $74.38 when these options were sold.
04/16/2011 Apr2011 EWZ Options Expired.
Note: the price of EWZ was $77.11 upon options expiration.

The overall performance results(including commissions) for the iShares MSCI Brazil ETF (EWZ) transactions was as follows:
Stock Purchase Cost: $14,432.75
= ($72.119*200+$8.95 commission)

Net Profit:
(a) Options Income: +$688.65
= (200*($1.45-$1.61+$2.32+$1.44) - 3*$10.45 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (EWZ assigned at $75.00): +$567.25
= ($75.00-$72.119)*200 - $8.95 commissions

Total Net Profit(EWZ assigned at $75.00): +$1,255.90
= (+$688.65 +$0.00 +$567.25)

Absolute Return (EWZ assigned at $75.00): +8.7%
= +$1,255.90/$14,432.75
Annualized Return: +40.7%
= (+$1,255.90/$14,432.75)*(365/78 days)


3. iShares MSCI China ETF (FXI) -- Closed
The transactions history is as follows:
06/21/2010 Bought 1,100 FXI @ $41.85
06/21/2010 Sold 11 FXI Jul2010 $43.00 Calls @ $.71
7/17/2010 Jul2010 Options Expired
Note: The closing price of FXI was $38.74 on expiration Friday.
07/22/2010 Sold 7 FXI Aug2010 $42.00 Calls @ $.73
07/22/2010 Sold 4 FXI Aug2010 $43.00 Calls @ $.42
Note: The price of FXI was $41.02 today when these options were sold.
08/21/2010 Aug2010 Option Expired
Note: The closing price of FXI was $40.54 on expiration Friday.
09/02/2010 Sold 11 FXI Sep2010 $42.00 Call Options @ $.20
Note: The price of FXI was $40.52 today when these options were sold.
09/17/2010 Sep2010 Options Expired
09/20/2010 Sell-to-Open (STO) 11 FXI Oct2010 $43.00 Call Options @ $.62
Note: The price of FXI was $42.19 today when these options were sold.
10/14/2010 Buy-to-Close (BTC) 11 FXI Oct2010 $43.00 Call Options @ $2.69
10/14/2010 Sell-to-Open (STO) 11 FXI Nov2010 $47.00 Call Options @ $.85
11/20/2010 Nov2010 Options Expired
Note: The closing price of FXI was $44.66 on expiration Friday.
12/01/2010 Sell-to-Open (STO) 11 FXI Jan2011 $47.00 Call Options @ $.63
Note: The price of FXI was $44.41 today when these options were sold.
12/20/2010 Income Distribution $186.11 = ($.16919 * 1100 shares)
01/22/2011 Jan2011 FXI options expired
Note: The price of FXI was $43.23 at closing on expiration Friday.
01/24/2011 Sold 3 FXI Feb2011 $44.00 Calls @ $.55
Note: The price of FXI was $43.04 when these options were sold.
02/19/2011 Feb2011 FXI options expired
02/28/2011 Sold 11 FXI Apr2011 $44.00 Calls @ $.67
Note: The price of FXI was $42.41 when these Call options were sold.
04/16/2011 Apr2011 FXI Options Expired.
Note: the price of FXI was $45.79 upon options expiration.

The overall performance results(including commissions) for the iShares MSCI China ETF (FXI) transactions was as follows:
Stock Purchase Cost: $46,043.95
= ($41.85*1,100+$8.95 commission)

Net Profit:
(a) Options Income: +$2,235.65
= (1,100*($.71+$.20+$.62-$2.69+$.85+$.63+$.55+$.67) + 700*$.73 + 400*$.40 - ($17.20*6 +$14.20 +$11.95) commissions)
(b) Distribution Income: +$186.11 = ($.16919 * 1100 shares)
(c) Capital Appreciation (FXI shares are assigned at $44.00): +$2,356.05
= ($44.00-$41.85)*1,100 - $8.95 commissions

Total Net Profit (FXI shares assigned at $44.00): +$4,777.81
= (+$2,235.65 +$186.11 +$2,356.05)

Absolute Return (FXI assigned at $44.00): +10.4%
= +$4,777.81/$46,043.95
Annualized Return: +12.7%
= (+$4,777.81/$46,043.95)*(365/299 days)


4. iShares MSCI Emerging Markets ETF (EEM) -- Closed
The transactions history is as follows:
10/27/2010 Bought 300 EEM @ $45.55
10/27/2010 Sold 3 EEM Nov2010 $46.00 Calls @ $.99
11/19/2010 Buy-to-Close (BTC) 3 EEM Nov2010 $46.00 Call Options @ $.38
11/19/2010 Sell-to-Open (STO) 3 EEM Dec2010 $47.00 Call Options @ $1.02
12/18/2010 Dec2010 Options Expired
Note: The price of EEM was $46.40 upon Dec2010 options expiration.
12/21/2010 Sold 3 EEM Jan2011 $47.00 Calls @ $.77
Note: The price of EEM was $46.43 when these options were sold.
12/21/2010 Distribution Income $107.83 = $.35942 * 300 shares
12/29/2010 Distribution Income $7.54 = $.02512 * 300 shares
01/22/2011 Jan2011 EEM options expired
Note: The price of EEM was $46.49 at closing on expiration Friday.
01/24/2011 Sold 3 EEM Feb2011 $47.00 Calls @ $.92
Note: The price of EEM was $46.65 when these options were sold.
02/19/2011 Feb2011 EEM options expired
02/28/2011 Sold 3 EEM Mar2011 $46.00 Calls @ $.79
Note: The price of EEM was $45.86 when these Call options were sold.
04/16/2011 Apr2011 EEM Options Expired.
Note: the price of EEM was $49.13 upon options expiration.

The overall performance results(including commissions) for the EEM transactions were as follows:
Stock Purchase Cost: $13,673.95
= ($45.55*300+$8.95 commission)

Net Profit:
(a) Options Income: +$1,177.00
= (300*($.99-$.38+$1.02+$.77+$.92+$.79) - 5*$11.20 commissions)
(b) Distribution Income: +$115.37 = $107.83 + $7.54
(c) Capital Appreciation (Stock assigned at $46.00): +$126.05
= ($46.00-$45.55)*300 - $8.95 commissions

Total Net Profit (EEM shares assigned at $47.00): +$1,418.42
= (+$1,177.00 +$115.37 +$126.05)

Absolute Return if Assigned at $46.00: +10.4%
= +$1,418.42/$13,673.95
Annualized Return If Assigned (ARIA): +22.1%
= (+$1,418.42/$13,673.95)*(365/171 days)


5. iShares MSCI South Korea ETF (EWY) -- Closed
The transactions history was as follows:
02/22/2011 Bought 300 EWY @ $58.03
02/22/2011 Sold 3 EWY Mar2011 $59.00 Calls @ $1.38
Note: these call options were sold with the price of EWY at $58.53
03/19/2011 Mar2011 Options Expired
03/21/2011 Sold 3 EWY Apr2011 $61.00 Calls @ $1.22
Note: price of EWY was $60.10 when these options were sold.
04/16/2011 Apr2011 EWY Options Expired.
Note: the price of EWY was $65.62 upon options expiration.

Two possible overall performance results(including commissions) for the EWY transactions would be as follows:
Stock Purchase Cost: $17,417.95
= ($58.03*300+$8.95 commission)

Net Profit:
(a) Options Income: +$757.60
= (300*($1.38+$1.22) - 2*$11.20 commissions)
(b) Dividend Income: +$0.00
(c) Capital Appreciation (EWY shares assigned at $61.00): +$882.05
= ($61.00-$58.03)*300 - $8.95 commissions

Total Net Profit(EWY assigned at $61.00): +$1,639.65
= (+$757.60 +$0.00 +$882.05)

Absolute Return (EWY assigned at $61.00): +9.4%
= +$1,639.65/$17,417.95
Annualized Return: +64.8%
= (+$1,639.65/$17,417.95)*(365/53 days)


6. Sprint Nextel Corp.(S) -- Closed
The transactions history was as follows:
02/03/2011 Bought 1500 S @ $4.32
02/03/2011 Sold 15 S Feb2011 $4.50 Calls @ $.12
02/19/2011 Feb2011 S options expired
02/28/2011 Sold 15 S Apr2011 $4.50 Calls @ $.16
Note: The price of S was $4.37 when these Call options were sold.
04/16/2011 Apr2011 S Options Expired.
Note: the price of S was $4.81 upon options expiration.

The overall performance results(including commissions) for the Sprint Nextel Corp.(S) transactions was as follows:
Stock Purchase Cost: $6,488.95
= ($4.32*1500+$8.95 commission)

Net Profit:
(a) Options Income: +$379.60
= [1500*($.12+$.16) - 2*$20.20 commissions]
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Sprint assigned at $4.50): +$261.05
= ($4.50-$4.32)*1500 - $8.95 commissions

Total Net Profit(Sprint stock assigned at $4.50): +$640.65
= (+$379.60 +$0.00 +$261.05)

Absolute Return (Stock Assigned at $4.50): +9.9%
= +$640.65/$6,488.95
Annualized Return: +50.1%
= (+$640.65/$6,488.95)*(365/72 days)