Today prior to market open, my broker informed me that the 3 Dec2014 call options in iShares MSCI South Korea Capped ETF were assigned, so the 300 shares of EWY were sold at the $55.00 strike price. The owner of these calls exercised their option yesterday to obtain the 300 shares on the day prior to today's ex-dividend date for EWY to capture the $.67 distribution. As detailed below, this investment yielded a modest +0.3% absolute
return in 54 days (which is equivalent to a +2.2% annualized return-on-investment).
1. iShares MSCI South Korea Capped ETF -- Closed
10/24/2014 Bought 300 shares EWY at $56.68
10/24/2014 Sold 3 EWY Dec2014 $55.00 Call options at $1.93
12/17/2014 Early Assignment -- Sold 300 shares EWY at $55.00 strike price
The performance result (including
commissions) for this South Korea ETF position was as follows:
Stock
Purchase Cost: $16,995.05
= ($56.68*300+$8.95 commission)
Net
Profit:
(a) Options Income: +$567.80
= 300 * $1.93 - $11.20
commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (HAL
sold at $49.90) = -$512.95
= ($55.00-$56.68)*300 - $8.95
commissions
Total Net Profit: +$54.85
=
(+$567.80 +$0.00 -$512.95)
Absolute Return: +0.3%
= +$54.85/$16,995.05
Annualized Return: +2.2%
=
(+$54.85/$16,995.05)*(365/54 days)
