1. Potash Corp. of Saskatchewan Inc. (POT) -- New Covered Calls Position
05/24/2013 Bought 300 POT shares @ $41.22
05/24/2013 Sold 3 POT Jun2013 $40.00 Call Options @ $1.69
Note: the price of POT was $41.25 when the options were sold.
A possible overall performance result (including commissions) for these Potash Corp. of Saskatchewan Inc. (POT) covered calls is as follows:
Stock Purchase Cost: $12,374.95
= ($41.22*300+$8.95 commission)
Net Profit:
(a) Options Income: +$495.80
= 300*$1.69 - $11.20 ommissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If POT assigned at $40.00) = -$374.95
= ($40.00-$41.22)*300 - $8.95 commissions
Total Net Profit (If POT assigned at $40.00): +$120.85
= (+$495.80 +$0.00 -$374.95)
Absolute Return if Assigned (at $40.00): +1.0%
= +$120.85/$12,374.95
Annualized Return If Assigned (ARIA): +11.9%
= (++$120.85/$12,374.95)*(365/30 days)
2. Tesoro Corporation (TSO) -- New Covered Calls Position
05/24/2013 Bought 200 TSO shares @ $61.11
05/24/2013 Sold 2 TSO Jun2013 $60.00 Call Options @ $3.15
Note: the price of TSO was $61.25 when the options were sold.
A possible overall performance result (including commissions) for these Tesoro Corp. (TSO) covered calls is as follows:
Stock Purchase Cost: $12,230.95
= ($61.11*200+$8.95 commission)
Net Profit:
(a) Options Income: +$619.55
= 200*$3.15 - $10.45 ommissions
(b) Dividend Income: +$40.00 = ($.20 * 200 shares). Ex-div date is May 29th
(c) Capital Appreciation (If TSO assigned at $60.00) = -$230.95
= ($60.00-$61.11)*200 - $8.95 commissions
Total Net Profit (If TSO assigned at $60.00): +$428.60
= (+$619.55 +$40.00 -$230.95)
Absolute Return if Assigned (at $60.00): +3.5%
= +$428.60/$12,230.95
Annualized Return If Assigned (ARIA): +42.6%
= (+$428.60/$12,230.95)*(365/30 days)
