Today was the options expiration date for quarterly options. The Covered Calls Advisor owned a covered call position in the S&P 500 Index (ticker symbol SPY) that was assigned (shares sold) at the $191.00 strike price since SPY closed at $191.63 today (i.e. above the strike price).
The maximum potential profit was realized which was +2.5% absolute return (equivalent to +33.6% annualized return for the 27 days of this covered call investment). The details for this position are as follows:
1. S&P 500 Index (SPY) -- Covered Call Position Closed
09/04/2015 Bought 100 SPY shares @ $192.59
09/04/2015 Sold 1 SPY Sep30,2015 $191.00 Call option @ $5.53
09/18/2015 Ex-dividend of $1.03343 per share
09/30/2015 SPY Sep30,2015 Call option exercised and the 100 shares of SPY were sold at the $191.00 strike price.
Note: SPY closed at $191.63 on the 9/30/2015 quarterly options expiration date.
The overall performance result (including commissions) for this SPY covered call position was as follows:
Stock Purchase Cost: $19,267.95
= ($192.59*100+$8.95 commission)
(a) Options Income: +$544.05
= ($5.53*100 shares) - $8.95 commissions
(b) Dividend Income (SPY assigned at Sept30,2015 expiration): +$103.34
= ($1.03343 dividend per share x 100 shares)