The actual return-on-investment result for this closed position was a +1.1% absolute return (equivalent to +50.2% annualized return) for the 8 days holding period. This 50.2% annualized return result was higher than the +33.6% annualized ROI that would have occurred if the covered calls had instead been exercised next Monday (the day prior to the GM ex-div date).
The details achieved from closing this GM position today are as follows:
General Motors Co. (GM) -- Covered Calls Position Closed
05/25/2017 Bought 400 GM shares @ $32.20
05/25/2017 Sold 4 GM Jun2017 $31.50 Call options @ $1.10
Note: a simultaneous buy/write transaction was executed.
06/07/2017 Upcoming ex-dividend of $.38 per share
06/02/2017 Sold 400 GM shares @ $34.27
06/02/2017 Bought-to-Close 4 GM Jun2017 $31.50 Call options @ $2.79
Note: this was a simultaneous covered calls unwind transaction
The overall performance result (including commissions) for this General Motors covered calls position were as follows:
Stock Purchase Cost: $12,884.95
= ($32.20*400+$4.95 commission)
(a) Options Income: -$681.20
= ($1.10-$2.79) *400 shares) - $5.20 commissions
(b) Dividend Income: +$0.00;