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 up to a higher strike, in order to avoid assignment on the CC position. As in the last adjustment, the cost basis of the CC position was adjusted to account for intrinsic value of the call vs the purchase price and to keep it the same as the CSP poaition.
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 | $93.96 |
| Percent Income Generated | 7.23% |
| Annualized Income Generated | 33.82% |
| Net Profit If Closed | $93.96 |
| Percent Return If Closed | 7.23% |
| Annualized Return If Closed | 33.82% |
| Days Held to Expiration | 78 days |
Trade History
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 11/29/2012 | ARO | Initial Stock Position | BTO 100 ARO @ 13.20 | ($1,320.00) | ||
| 11/29/2012 | ARO | Initial Call Option | STO 1 Dec12 12.00 Call @ 1.35 | Closed | $120.00 | $14.52 |
| 12/21/2012 | ARO | Buy Back | BTC 1 Dec12 12.00 Call @ -1.13 | ($120.00) | $6.94 | |
| 12/21/2012 | ARO | Roll Out/Up | STO 1 Jan13 12.50 Call @ 0.99 | $70.00 | $28.94 | |
| 1/17/2013 | ARO | Buy Back | BTC 1 Jan13 12.50 Call @ -0.80 | ($70.00) | ($10.37) | |
| 1/17/2013 | ARO | Roll Out/Up | STO 1 Feb13 13.00 Call @ 0.74 | $20.00 | $53.93 | |
| 2/15/2013 | ARO | Totals | ($1,300.00) | $93.96 | ||
| DTE | 78 | Percent Income/Annualized | 7.23% | 33.82% |
CSP Position Summary
Aeropostale (ARO). All prices include IB commissions.
| Cost Basis | ($1,300.00) |
| Income Generated | $95.02 |
| Percent Income Generated | 7.31% |
| Annualized Income Generated | 34.20% |
| Net Profit If Closed | $95.02 |
| Percent Return If Closed | 7.31% |
| Annualized Return If Closed | 34.20% |
| Days Held to Expiration | 78 days |
Trade History
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 11/29/2012 | ARO | CSP Margin Used | CSP 100 ARO @ 12.00 | Closed | ($1,200.00) | |
| 11/29/2012 | ARO | Initial Put Option | STO 1 Dec12 12.00 Put @ 0.14 | Closed | $14.12 | |
| 12/21/2012 | ARO | Buy Back | BTC 1 Dec12 12.00 Put @ -0.05 | ($5.48) | ||
| 12/21/2012 | ARO | CSP Margin Returned | CSP 100 ARO @ -12.00 | $1,200.00 | ||
| 12/21/2012 | ARO | CSP Margin Used | CSP 100 ARO @ 12.50 | Closed | ($1,250.00) | |
| 12/21/2012 | ARO | Roll Out/Up | STO 1 Jan13 12.50 Put @ 0.39 | Closed | $38.94 | |
| 1/17/2013 | ARO | Buy Back | BTC 1 Jan13 12.50 Put @ -0.07 | ($7.07) | ||
| 1/17/2013 | ARO | CSP Margin Returned | CSP 100 ARO @ -12.50 | $1,250.00 | ||
| 1/17/2013 | ARO | CSP Margin Used | CSP 100 ARO @ 13.00 | ($1,300.00) | ||
| 1/17/2013 | ARO | Roll Out/Up | STO 1 Feb13 13.00 Put @ 0.55 | $54.51 | ||
| 2/15/2013 | ARO | Totals | ($1,300.00) | $95.02 | ||
| DTE | 78 | Percent Income/Annualized | 7.31% | 34.20% |
