Position Adjustments -- iShares China Large-Cap ETF, MetLife Inc., Micron Technology Inc., and International Paper

Upon last Friday's Sept2015 options expiration, four positions closed with their prices below the strike prices.  Today, covered call positions were established in the Covered Calls Advisor portfolio for three of these equities (iShares China Large-Cap ETF, MetLife Inc., and Micron Technology Inc.) for the Oct2015 options expiration. International Paper was the other company whose options expired last Friday, and these shares were sold today. The transactions to-date for these positions and associated return-on-investment results are detailed below:

1.  iShares China Large-Cap ETF (ticker FXI) --Continuation

The transactions are as follows:
08/17/2015 Sold 3 iShares China Large-Cap ETF Sep2015 $38.50 Puts @ $.77
Note: The price of FXI was $39.75 when this transaction was executed.
09/18/2015 3 FXI Sep2015 Put options exercised and 300 shares of FXI purchased at $38.50 strike price
Note: the price of FXI was $36.32 upon Sep2015 options expiration
09/21/2015 Sold 3 FXI $38.00 Oct2015 Call options @ $.73
Note: the price of FXI was $36.91 when this transaction was made

Note: The Covered Calls Advisor does not use margin, so the detailed information on this position and a potential result shown below reflect the fact that this position was established using 100% cash securitization for the three Put options sold.

Two possible overall performance results (including commissions) for these transactions would be as follows:
100% Cash-Secured Cost Basis: $11,550.00
= $38.50*300


Net Profit:
(a) Options Income: +$427.60
= ($.77+$.73) *300 shares - 2*$11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If FXI is unchanged at current $36.91 price upon Oct2015 expiration): -$477.00
= ($36.91-$38.50)*300 shares; or
(c) Capital Appreciation (If FXI is above $38.00 strike price at Oct2015 expiration): -$150.00
= ($38.00-$38.50)*300 shares

Total Net Profit (If FXI is unchanged at current price of $36.91 upon the Oct2015 options expiration): -$49.40
= (+$427.60 +$0.00 -$477.00); or
Total Net Profit (If FXI is above $38.00 strike price upon the Oct2015 options expiration): +$277.60
= (+$427.60 +$0.00 -$150.00)

1. Absolute Return (If FXI is unchanged at current price of $36.91 at Oct2015 options expiration): -0.4%
= -$49.40/$11,550.00
Annualized Return: -2.6%
= (+$219.80/$11,550.00)*(365/60 days); OR

2. Absolute Return (If FXI is above $38.00 strike price at Oct2015 options expiration): +2.4%
= +$277.60/$11,550.00
Annualized Return: +14.6%
= (+$277.60/$11,550.00)*(365/60 days)

2.  MetLife Inc. (ticker MET) --Continuation
The transaction was as follows:
08/31/2015 Sold 4 MetLife Inc. Sep2015 $48.00 Puts @ $.96
Note: The price of MET was $49.55 when this transaction was executed.
09/18/2015 4 MET Sep2015 Put options exercised and 400 shares of MET purchased at $48.00 strike price
Note: the price of MET was $46.52 upon Sep2015 options expiration
09/21/2015 Sold 4 MET $47.50 Oct2015 Call options @ $1.25
Note: the price of MET was $47.20 when this transaction was made


Two possible overall performance results (including commissions) for these transactions would be as follows:
100% Cash-Secured Cost Basis: $19,200.00
= $48.00*400

Net Profit:
(a) Options Income: +$860.10
= ($.96+$1.25) *400 shares - 2*$11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If MET is unchanged at current $47.20 price upon Oct2015 expiration): -$320.00
= ($47.20 - $48.00)*400 shares; or
(c) Capital Appreciation (If MET is above $47.50 strike price at Oct2015 expiration): -$200.00
= ($47.50 - $48.00)*400 shares

Total Net Profit (If MET is unchanged at current price of $47.20 upon the Oct2015 options expiration): +$540.10
= (+$860.10 +$0.00 -$320.00); or
Total Net Profit (If MET is above $47.50 strike price upon the Oct2015 options expiration): +$660.10
= (+$860.10 +$0.00 -$200.00)

1. Absolute Return (If MET is unchanged at current price of $47.20 at Oct2015 options expiration): +2.8%
= +$540.10/$19,200.00
Annualized Return: +22.3%
= (+$540.10/$19,200.00)*(365/46 days); OR

2. Absolute Return (If MET is above $47.50 strike price at Oct2015 options expiration): +3.4%
= +$660.10/$19,200.00
Annualized Return: +27.3%
= (+$660.10/$19,200.00)*(365/46 days)

3.  Micron Technology Inc.  (ticker MU) --Continuation

The transaction was as follows:
08/12//2015  Sold 7 MU 100% cash-secured $17.00 Put options @ $.78
Note: The price of MU was $17.66 when this transaction was executed.
09/18/2015 7 MU Sep2015 Put options exercised and 700 shares of MU purchased at $17.00 strike price
Note: the price of MU was $15.50 upon Sep2015 options expiration
09/21/2015 Sold 7 MU $17.00 Oct2015 Call options @ $.55
Note: the price of MU was $15.80 when this transaction was made


Two possible overall performance results (including commissions) for these transactions would be as follows:
100% Cash-Secured Cost Basis: $11,900.00
= $17.00*700

Net Profit:
(a) Options Income: +$902.60
= ($.78+$.55) * 700 shares - 2*$14.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If MU is unchanged at current $15.80 price upon Oct2015 expiration): -$840.00
= ($15.80 - $17.00)*700 shares; or
(c) Capital Appreciation (If MU is above $17.00 strike price at Oct2015 expiration): +$0.00
= ($17.00 - $17.00)*700 shares

Total Net Profit (If MU is unchanged at current price of $15.80 upon the Oct2015 options expiration): +$62.60
= (+$902.60 +$0.00 -$840.00); or
Total Net Profit (If MU is above $17.00 strike price upon the Oct2015 options expiration): +$902.60
= (+$902.60 +$0.00 +$0.00)

1. Absolute Return (If MU is unchanged at current price of $15.80 at Oct2015 options expiration): +0.5%
= +$62.60/$11,900.00
Annualized Return: +3.0%
= (+$62.60/$11,900.00)*(365/65 days); OR

2. Absolute Return (If MU is above $17.00 strike price at Oct2015 options expiration): +7.6%
= +$902.60/$11,900.00
Annualized Return: +42.6%
= (+$902.60/$11,900.00)*(365/65 days)

4.  International Paper Inc. (ticker IP) -- Closed
The transactions were as follows:
08/03/2015 Bought 200 IP shares @ $47.30
08/03/2015 Sold 2 IP Aug2015 $46.00 Call options @ $1.59
08/12/2015 Ex-dividend of $.40 per share

08/21/2015 2 Aug2015 Call options expired
08/27/2015 Sold 2 IP Sep2015 $44.00 Call options @ $.92
09/18/2015 2 IP Sep2015 $44.00 Call options expired
Note: the price of IP was $40.42 upon Sep2015 options expiration
09/21/2015 Sold 200 IP shares @ $40.80

The performance result (including commissions) for this International Paper (IP) covered calls position is:
Stock Purchase Cost: $9,468.95
= ($47.30*200+$8.95 commission)

Net Profit:
(a) Options Income: +$481.10
= ($1.59 + $.92) *200 shares - 2*$10.45 commissions
(b) Dividend Income: +$80.00
= ($.40 dividend per share x 200 shares)
(c) Capital Appreciation: -$1,308.95

+($40.80 - $47.30)*200 - $8.95 commissions

Total Net Profit: -$747.85
= (+$481.10 +$80.00 -$1,308.95)

Absolute Return: -7.9%

= -$747.85/$9,468.95

Annualized Return: -39.0%

= (-$747.85/$9,468.95)*(365/74 days)