I did an income trade a while ago with Royal Bank.
May 15, 2013 - Purchased 100 shares of Royal Bank at 61.26 for a total of 6130.30 including commissions.
May 16, 2013 - Wrote a covered call Jun 22, 2013 62 for a option premium of 69.05 after commissions. I receive this premium right away as I am obligated to sell my shares at 62.00 strike price on or before expiration date. The option expired an I got to keep my shares.
June 26, 2013 - Wrote second covered call July 19, 2013 62 for an option premium of 39.05 after commissions. Like above I received this immediately in my brokerage account.
July 19, 2013 - My shares were called away as the price of Royal Bank went up over $65 a share.
The assignment has a commission of 12.00 for the broker I use.
Total Return = Profit / Money invested
NOTE : I originally used an option assignment charge of $12.00, but after checking trading confirmations noticed it was changed to $12.95.
So what did I do with the option premiums and the capital gain from this trade ( Total $165.80). It stays in my brokerage account.
I missed the dividend record date for Royal Bank when I purchased the stock.
So for comparison sake, if I just sold the shares at $62.00 (assuming $4.95 commission to sell)
Total Return = (6200-6130.30-4.95)/6130.30