Saturday, May 11, 2013

AVP - Closed

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 Expiration718 days

Trade History

DateStockDescriptionTransactionStatusStock InvestmentIncome Generated
5/23/2011AVPCSP Margin UsedCSP 200 AVP @ 26.00 ($5,200.00) 
5/23/2011AVPInitial Put OptionSTO 2 Oct11 26.00 Put @ 0.82Exercised $164.56
10/21/2011AVPCSP Margin ReturnedCSP 200 AVP @ -26.00   
10/21/2011AVPStock AssignedEX 2 Oct11 26.00 Put @ -26.00Called $0.00
12/1/2011AVPDividend ReceivedDIV 200 Dividend @ 0.23  $46.00
3/1/2012AVPDividend ReceivedDIV 200 Dividend @ 0.23  $46.00
4/4/2012AVPContinued TradeSTO 2 May12 25.00 Call @ 0.34Expired $68.55
6/1/2012AVPDividend ReceivedDIV 200 Dividend @ 0.23  $46.00
7/27/2012AVPContinued TradeSTO 2 Aug12 19.00 Call @ 0.09Expired $18.49
9/4/2012AVPDividend ReceivedDIV 200 Dividend @ 0.23  $46.00
9/14/2012AVPContinued TradeSTO 2 Oct12 19.00 Call @ 0.14  $28.48
12/3/2012AVPDividend ReceivedDIV 200 Dividend @ 0.06  $12.00
12/5/2012AVPContinued TradeSTO 2 Jan13 15.00 Call @ 0.39Closed $78.68
1/17/2013AVPBuy BackBTC 2 Jan13 15.00 Call @ -1.01  ($201.54)
1/17/2013AVPRoll Out/UpSTO 2 Feb13 16.00 Call @ 0.76Closed $152.46
2/12/2013AVPBuy BackBTC 2 Feb13 16.00 Call @ -4.86  ($971.54)
2/12/2013AVPRoll Out/UpSTO 2 Jul13 16.00 Call @ 5.00Exercised $999.84
3/1/2013AVPDividend ReceivedDIV 200 Dividend @ 0.06  $12.00
5/10/2013AVPStock CalledEX 2 Jul13 16.00 Call @ 16.00  $3,199.93
5/10/2013AVP Net Cost/Profit-Loss ($5,200.00)($1,454.09)
DTE-631 Percent Profit-Loss/Annualized -27.96%16.18%