January Summary/Checkpoint

Just a checkpoint to see how things are going:

aXIRR	Projected annual if:
-46.8%	No covered calls had been written (January effect only)
-10.1%	Only the initial January Calls had been written and expired/assigned
18.0%	Only the current February calls had been written
24.2%	All January and February and Rolling transactions

So, at least for the past month, it appears the active rolling of options was a positive thing to do.
 

Summary Workbook and terminology

Originally, I had created a ledger for all positions, but I was finding that hard to get a good overview of everything. Instead, I split each position up into its own worksheet and created a summary worksheet that looks like this:

Equity	aXIRR	aROI	OptionRV	StockRV
ED	33.7%	29.1%	31.3%	0.0%
EFA	98.4%	67.1%	100.0%	5.7%
IWM	182.7%	105.5%	-2.6%	0.4%
MMM	-31.7%	-46.9%	91.7%	7.6%
PFE	57.0%	45.0%	155.3%	4.4%
SPY	129.5%	83.9%	63.0%	3.3%
USO	398.5%	177.0%	3.8%	1.8%

For easy navigation, each ticker symbol is a link directly to the worksheet for that equity and each equity worksheet has a direct link back to the summary sheet.

The aXIRR and aROI numbers give me an overview of the total returns on each position. OptionRV tells me the relative value of the option, current price to transaction price. StockRV tells me the relative value of the stock, current price to outstanding option strike price.

So, based on the above, I'd probably take a look at rolling EFA, MMM, and PFE.

aXIRR is the annual internal rate of return, as computed by the XIRR() function in EXCEL.

aROI is the annual rate of return on an income stream basis. Basically:

aROI = (stock gain + net option premiums + dividends) / (initial cost) * (365 / # of days of position)