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Global X Gold Producer Equity Covered Call ETF T.GLCC

Alternate Symbol(s):  HEPZF



TSX:GLCC - Post by User

Comment by gina_cobbon Jul 20, 2011 10:33am
249 Views
Post# 18851347

RE: RE: GOLDS

RE: RE: GOLDSShares are generally called away the day after the 3rd Friday of each month. (thats after 15th July when the calls expire)
The payment for those shares is usually 3 business days later.
Shares are very rarely called away at other times but they can be.
My rough estimate is that the NAV could stay little changed or possibly rise by about 2%. It would depend upon what price the shares are bought back  as well as the call strike price received.
For example ABX closed 17th June at $42.23. If a $44 call was sold then the premium would be  .65.
.....................  ABX closed 15th July at $46.11. the $44 call would have been excercised gain = $1.77
the total received would be $1.77 
.65 = $ 2.42   So $42.23 + $2.42 = $44.75 BUT ABX would cost $46.11 to repurchase.
However we don't know the book value of the ABX shares, the Strike price for any calls written or what got called away.
So overall ABX earned $2.42 but cost $1.36 more to re-buy for a gain of about 2% NAV
---------
Gina (all IMHO)
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