The ARO May13 13.00 Call was exercised and the stock was called away, and the ARO May13 13.00 Put expired. As you can see below, these positions generated an equivalent return after being held for 6 months and through 5 adjustments. This proves that CC's and CSP's are equivalent positions when done at the same strike/expiration.
CC Position Summary - Traditional Accounting
Aeropostale (ARO). All prices include IB commissions.
| Cost Basis | $1,320.00 |
| Net Profit | $210.41 |
| Percent Return | 15.94% |
| Annualized Return | 34.43% |
| Days Held to Expiration | 169 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 | $134.52 | |
| 12/21/2012 | ARO | Buy Back | BTC 1 Dec12 12.00 Call @ -1.13 | ($113.06) | ||
| 12/21/2012 | ARO | Roll Out/Up | STO 1 Jan13 12.50 Call @ 0.99 | Closed | $98.94 | |
| 1/17/2013 | ARO | Buy Back | BTC 1 Jan13 12.50 Call @ -0.80 | ($80.37) | ||
| 1/17/2013 | ARO | Roll Out/Up | STO 1 Feb13 13.00 Call @ 0.74 | Closed | $73.93 | |
| 2/13/2013 | ARO | Buy Back | BTC 1 Feb13 13.00 Call @ -0.35 | ($35.27) | ||
| 2/13/2013 | ARO | Roll Out | STO 1 Mar13 13.00 Call @ 0.89 | Closed | $88.93 | |
| 3/15/2013 | ARO | Buy Back | BTC 1 Mar13 13.00 Call @ -0.80 | ($80.37) | ||
| 3/15/2013 | ARO | Roll Out/Up | STO 1 Apr13 13.00 Call @ 0.99 | Closed | $98.93 | |
| 4/19/2013 | ARO | Buy Back | BTC 1 Apr13 13.00 Call @ -0.05 | ($5.37) | ||
| 4/19/2013 | ARO | Roll Out | STO 1 May13 13.00 Call @ 0.50 | Exercised | $49.63 | |
| 5/17/2013 | ARO | Stock Called | EX 1 May13 13.00 Call @ 13.00 | $1,299.97 | ||
| 5/17/2013 | ARO | Net Cost/Profit-Loss | ($1,320.00) | $210.41 | ||
| DTE | 169 | Percent Profit-Loss/Annualized | 15.94% | 34.43% |
CC Position Summary - Modified Accounting to Adjust for Intrinsic Value
Aeropostale (ARO). All prices include IB commissions.
| Cost Basis | $1,300.00 |
| Net Profit | $210.41 |
| Percent Return | 16.19% |
| Annualized Return | 34.96% |
| Days Held to Expiration | 169 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 | Closed | $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 | Closed | $20.00 | $53.93 |
| 2/13/2013 | ARO | Buy Back | BTC 1 Feb13 13.00 Call @ -0.35 | ($20.00) | ($15.27) | |
| 2/13/2013 | ARO | Roll Out | STO 1 Mar13 13.00 Call @ 0.89 | Closed | $20.00 | $68.93 |
| 3/15/2013 | ARO | Buy Back | BTC 1 Mar13 13.00 Call @ -0.80 | ($20.00) | ($60.37) | |
| 3/15/2013 | ARO | Roll Out/Up | STO 1 Apr13 13.00 Call @ 0.99 | Closed | $20.00 | $78.93 |
| 4/19/2013 | ARO | Buy Back | BTC 1 Apr13 13.00 Call @ -0.05 | ($20.00) | $14.63 | |
| 4/19/2013 | ARO | Roll Out | STO 1 May13 13.00 Call @ 0.50 | Exercised | $20.00 | $29.63 |
| 5/17/2013 | ARO | Stock Called | EX 1 May13 13.00 Call @ 13.00 | $0.00 | $1,299.97 | |
| 5/17/2013 | ARO | Net Cost/Profit-Loss | ($1,300.00) | $210.41 | ||
| DTE | 169 | Percent Profit-Loss/Annualized | 16.19% | 34.96% |
CSP Position Summary
Aeropostale (ARO). All prices include IB commissions.
| Cost Basis | $1,300.00 |
| Net Profit | $213.98 |
| Percent Return | 16.46% |
| Annualized Return | 35.55% |
| Days Held to Expiration | 169 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 | Closed | $54.51 | |
| 2/13/2013 | ARO | Buy Back | BTC 1 Feb13 13.00 Put @ -0.15 | ($15.37) | ||
| 2/13/2013 | ARO | Roll Out | STO 1 Mar13 13.00 Put @ 0.65 | Closed | $64.73 | |
| 3/15/2013 | ARO | Buy Back | BTC 1 Mar13 13.00 Put @ -0.05 | ($5.37) | ||
| 3/15/2013 | ARO | Roll Out/Up | STO 1 Apr13 13.00 Put @ 0.29 | Closed | $29.11 | |
| 4/19/2013 | ARO | Buy Back | BTC 1 Apr13 13.00 Put @ -0.16 | ($16.07) | ||
| 4/19/2013 | ARO | Roll Out | STO 1 May13 13.00 Put @ 0.62 | Expired | $61.93 | |
| 5/17/2013 | ARO | CSP Margin Returned | CSP 100 ARO @ -13.00 | $1,300.00 | ||
| 5/17/2013 | ARO | Net Cost/Profit-Loss | ($1,300.00) | $213.98 | ||
| DTE | 169 | Percent Profit-Loss/Annualized | 16.46% | 35.55% |
