Today, the Covered Calls Advisor closed the short 100% cash-secured Put options position by buying-to-close the two Apple Inc. (Symbol AAPL) Nov2015 $115.00 Put options. As detailed below, this investment resulted in a +3.7% absolute
return in 30 days (equivalent to a +45.4% annualized
return-on-investment).1. Apple Inc. (AAPL)
The transactions were as follows:
09/28/2015 Sold 2 Apple Inc. Nov2015 $115.00 Puts @ $6.95
Note: The price of AAPL was $113.54 when this transaction was executed
10/28/2015 Bought-to-Close 2 Apple Nov2015 $115 Puts @ $2.55
Note: The price of AAPL was $116.20 when this transaction was made
The Covered Calls Advisor does not use margin, so the return-on-investment information on this position and two potential results shown below reflect the fact that this position was established using 100% cash securitization for the two Put options sold.
The purchase cost basis (including commissions) for this transaction was follows:
100% Cash-Secured Cost Basis: $23,000.00
= $115.00*200
Net Profit:
Options Income: +$859.10
= ($6.95 - $2.55) *200 shares - 2*$10.45 commissions
Absolute Return: +3.7%
= +$859.10/$23,000.00
Annualized Return: +45.4%
= (+$859.10/$23,000.00)*(365/30 days)
