Friday, March 15, 2013

ARO CC vs CSP - Adjustment

This is an ongoing position in ARO to show that CC's and CSP's are equivalent positions. Today I adjusted both positions by rolling the options out one month and at the same trike, in order to avoid assignment on the CC position.

Below are the details of both positions. I'll provide ongoing updates as the positions are managed.

CC Position Summary

Aeropostale (ARO). All prices include IB commissions.

Cost Basis($1,300.00)
Income Generated$166.18
Percent Income Generated12.78%
Annualized Income Generated33.09%
Net Profit If Closed$166.18
Percent Return If Closed12.78%
Annualized Return If Closed33.09%
Days Held to Expiration141 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
11/29/2012AROInitial Stock PositionBTO 100 ARO @ 13.20 ($1,320.00) 
11/29/2012AROInitial Call OptionSTO 1 Dec12 12.00 Call @ 1.35Closed$120.00$14.52
12/21/2012AROBuy BackBTC 1 Dec12 12.00 Call @ -1.13 ($120.00)$6.94
12/21/2012ARORoll Out/UpSTO 1 Jan13 12.50 Call @ 0.99 $70.00$28.94
1/17/2013AROBuy BackBTC 1 Jan13 12.50 Call @ -0.80 ($70.00)($10.37)
1/17/2013ARORoll Out/UpSTO 1 Feb13 13.00 Call @ 0.74Closed$20.00$53.93
2/13/2013AROBuy BackBTC 1 Feb13 13.00 Call @ -0.35 ($20.00)($15.27)
2/13/2013ARORoll OutSTO 1 Mar13 13.00 Call @ 0.89Closed$20.00$68.93
3/15/2013AROBuy BackBTC 1 Mar13 13.00 Call @ -0.80 ($20.00)($60.37)
3/15/2013ARORoll Out/UpSTO 1 Apr13 13.00 Call @ 0.99 $20.00$78.93
4/19/2013ARO Totals ($1,300.00)$166.18
DTE141 Percent Income/Annualized 12.78%33.09%

CSP Position Summary

Aeropostale (ARO). All prices include IB commissions.

Cost Basis($1,300.00)
Income Generated$168.12
Percent Income Generated12.93%
Annualized Income Generated33.48%
Net Profit If Closed$168.12
Percent Return If Closed12.93%
Annualized Return If Closed33.48%
Days Held to Expiration141 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
11/29/2012AROCSP Margin UsedCSP 100 ARO @ 12.00Closed($1,200.00) 
11/29/2012AROInitial Put OptionSTO 1 Dec12 12.00 Put @ 0.14Closed $14.12
12/21/2012AROBuy BackBTC 1 Dec12 12.00 Put @ -0.05  ($5.48)
12/21/2012AROCSP Margin ReturnedCSP 100 ARO @ -12.00 $1,200.00 
12/21/2012AROCSP Margin UsedCSP 100 ARO @ 12.50Closed($1,250.00) 
12/21/2012ARORoll Out/UpSTO 1 Jan13 12.50 Put @ 0.39Closed $38.94
1/17/2013AROBuy BackBTC 1 Jan13 12.50 Put @ -0.07  ($7.07)
1/17/2013AROCSP Margin ReturnedCSP 100 ARO @ -12.50 $1,250.00 
1/17/2013AROCSP Margin UsedCSP 100 ARO @ 13.00 ($1,300.00) 
1/17/2013ARORoll Out/UpSTO 1 Feb13 13.00 Put @ 0.55Closed $54.51
2/13/2013AROBuy BackBTC 1 Feb13 13.00 Put @ -0.15  ($15.37)
2/13/2013ARORoll OutSTO 1 Mar13 13.00 Put @ 0.65Closed $64.73
3/15/2013AROBuy BackBTC 1 Mar13 13.00 Put @ -0.05  ($5.37)
3/15/2013ARORoll Out/UpSTO 1 Apr13 13.00 Put @ 0.29  $29.11
4/19/2013ARO Totals ($1,300.00)$168.12
DTE141 Percent Income/Annualized 12.93%33.48%