Using the Capital Adjustment Section of Our Trade Management Calculator (TMC) to Generate Precise Total Portfolio Calculations – January 5, 2026
When we execute multiple exit strategies in the same contract cycle using the same cash investment, the TMC will provide us with accurate individual trade calculations. But, what about total portfolio calculations? Yes, our TMC will also afford us authentic total portfolio percentiles, but we must integrate the capital adjustment section of the spreadsheet into our computations. Without this extra step, the total investment will be overestimated and, therefore, our total portfolio returns will appear lower than it should be. To examine the process, a series of trades using SOFI & ACMR and the mid-contract unwind (MCU) exit strategy, previously published on our BCI site, will be utilized. To review:
Real-life trades with SOFI & ACMR
- 6/24/2025: Buy 500 x SOFI at $15.74
- 6/24/2025: STO 5 x 7/18/2025 $16.00 calls at $0.76
- 7/9/2025: BTC 5 x 7/18/2025 $16.00 calls at $4.10
- 7/9/2025: Sell 500 x SOFI at $20.00 (this closes the initial trade)
- 7/9/2025: Buy 500 x ACMR at $29.00
- 7/9/2025: STO 5 x 7/18/2025 $30.00 calls at $0.52
- 7/18/2025: 500 shares of ACMR sold at $30.00 by “allowing” exercise of a slightly ITM call strike
Calculating all trades, start-to-finish, Using the BCI Trade Management Calculator (TMC)
After both legs of the original SOFI covered call trade were closed, the cash generated from the sale of the stock was integrated into the purchase of the ACMR shares. Let’s review the initial portfolio returns with and without using the capital adjustment section of the TMC.
Total Portfolio returns without the capital adjustment section
- At no time was $22,370.00 invested or risked
- Calculated % return = 5.68%. Should be higher
- Much of the capital used to buy ACMR came from the sale of SOFI
- We must deduct the smaller amount invested (cost of SOFI shares)
Using the capital adjustment section
Total Portfolio returns after implementing the capital adjustment section
- Total capital invested is now an accurate $14,500.00, not $22,370.00
- The total potential return is an accurate 8.76%, not 5.68%
Discussion
When implementing multiple exit strategies in the same contract cycle, using the same cash investment, the capital adjustment section of the TMC will allow for precise total portfolio returns
Author: Alan Ellman