The Avon Products Inc (AVP) Jul13 16.00 Call was exercised and the position was closed. All prices include IB commissions.
This positon is an example of how selling a call below your cost basis can result in a loss. In hindsight, I should have held the stock uncovered and waited for the recovery. However, since Avon no longer meets my criteria, I decided to take the loss and move on.
Closed Position Summary
| Cost Basis | $5,200.00 |
| Net Profit | ($1,454.09) |
| Percent Return | -27.96% |
| Annualized Return | -14.22% |
| Days Held to Expiration | 718 days |
Trade History
| Date | Stock | Description | Transaction | Status | Stock Investment | Income Generated |
|---|---|---|---|---|---|---|
| 5/23/2011 | AVP | CSP Margin Used | CSP 200 AVP @ 26.00 | ($5,200.00) | ||
| 5/23/2011 | AVP | Initial Put Option | STO 2 Oct11 26.00 Put @ 0.82 | Exercised | $164.56 | |
| 10/21/2011 | AVP | CSP Margin Returned | CSP 200 AVP @ -26.00 | |||
| 10/21/2011 | AVP | Stock Assigned | EX 2 Oct11 26.00 Put @ -26.00 | Called | $0.00 | |
| 12/1/2011 | AVP | Dividend Received | DIV 200 Dividend @ 0.23 | $46.00 | ||
| 3/1/2012 | AVP | Dividend Received | DIV 200 Dividend @ 0.23 | $46.00 | ||
| 4/4/2012 | AVP | Continued Trade | STO 2 May12 25.00 Call @ 0.34 | Expired | $68.55 | |
| 6/1/2012 | AVP | Dividend Received | DIV 200 Dividend @ 0.23 | $46.00 | ||
| 7/27/2012 | AVP | Continued Trade | STO 2 Aug12 19.00 Call @ 0.09 | Expired | $18.49 | |
| 9/4/2012 | AVP | Dividend Received | DIV 200 Dividend @ 0.23 | $46.00 | ||
| 9/14/2012 | AVP | Continued Trade | STO 2 Oct12 19.00 Call @ 0.14 | $28.48 | ||
| 12/3/2012 | AVP | Dividend Received | DIV 200 Dividend @ 0.06 | $12.00 | ||
| 12/5/2012 | AVP | Continued Trade | STO 2 Jan13 15.00 Call @ 0.39 | Closed | $78.68 | |
| 1/17/2013 | AVP | Buy Back | BTC 2 Jan13 15.00 Call @ -1.01 | ($201.54) | ||
| 1/17/2013 | AVP | Roll Out/Up | STO 2 Feb13 16.00 Call @ 0.76 | Closed | $152.46 | |
| 2/12/2013 | AVP | Buy Back | BTC 2 Feb13 16.00 Call @ -4.86 | ($971.54) | ||
| 2/12/2013 | AVP | Roll Out/Up | STO 2 Jul13 16.00 Call @ 5.00 | Exercised | $999.84 | |
| 3/1/2013 | AVP | Dividend Received | DIV 200 Dividend @ 0.06 | $12.00 | ||
| 5/10/2013 | AVP | Stock Called | EX 2 Jul13 16.00 Call @ 16.00 | $3,199.93 | ||
| 5/10/2013 | AVP | Net Cost/Profit-Loss | ($5,200.00) | ($1,454.09) | ||
| DTE | -631 | Percent Profit-Loss/Annualized | -27.96% | 16.18% |
