Unwinding to Close DVN, SPY, and TRV

This evening’s post will have me caught up on my October trades so far.  Besides unwinding my TGT position, which I posted about earlier, I unwound three of my October contracts:  DVN, SPY, and TRV – except in these cases, I closed out all three positions for a gain that exceeded my goal of an annualized 12%return.

It turns out that DVN and TRV were hat tricks, as well – the positions earned income for me from share gains, covered call premiums, and dividends, all three sources.  TRV only barely missed the mark.

Here is the record on the three positions, net of fees and commissions:

DVN

Shares:

Bought 200 shares at an average price of $60.70, total position basis $12,014.80

Sold on unwind 200 shares at $12,230.78, average share price $61.15

Total stock gain:  $215.98

Options:

Total options income:   $279.50

Dividend:

Total dividends collected:  $88.00

Net Profit:
Total Net Profit after Unwinding:  $707.98
Absolute Return on Investment: ($707.98/$12,014.80) = 5.89%
Annualized Return (150 days):  5.89%*(365/150) = 14.34%

SPY

Shares:

Bought 100 shares, position basis $16,845.57

Sold on unwind 100 shares at $17,280.72

Total stock gain:  $435.15

Options:

Total options income:   $117.21

Dividend:

Total dividends collected:  $84.00

Net Profit:
Total Net Profit after Unwinding:  $636.36
Absolute Return on Investment: ($636.36/$16,845.57) = 3.78%
Annualized Return (83 days):  3.78%*(365/83) = 16.61%

TRV

Shares:

Bought 100 shares, position basis $8,210.99

Sold on unwind 100 shares at $8,454.86

Total stock gain:  $243.87

Options:

Total options income:   -$33.02

(The unwind transaction involves buying to close the final covered call contract, and that can mean the income from premiums is minimized – but it is offset by the additional stock gain.)

Dividends:

Total dividends collected:  $50.00

Net Profit:
Total Net Profit after Unwinding:  $260.85
Absolute Return on Investment: ($260.85/$8,210.99) = 3.18%
Annualized Return (65 days):  3.18%*(365/65) = 17.84%