Positions Closed in Valero Energy and Wells Fargo

This morning, the Covered Calls Advisor decided to close the existing positions in Valero Energy Group (ticker symbol VLO) and Wells Fargo Bank (ticker symbol WFC).  Both holdings were out-of-the-money Covered Calls that expired last Friday.     

As detailed below, the results were:

•  Valero Energy Corp. -- A +1.5% absolute return-on-investment (equivalent to +32.4% on an annualized basis) for the 17 days this position was held.
• Wells Fargo Bank N.A. -- A +0.3% absolute return-on-investment (equivalent to +5.6% on an annualized basis) for the 17 days this position was held.

1. Valero Energy Corp. (VLO) -- Covered Calls Position Closed
The transactions were:
8/02/2019 Bought 200 shares of Valero @ $81.49 per share 
8/02/2019 Sold 2 Valero August 16th, 2019 $80.00 Call options @ $2.36 per share
Note: This was a simultaneous buy/write transaction.
08/05/2019 Ex-dividend of $.90 per share
08/16/2019 Valero shares closed at $78.12 which was below the $80.00 strike price, so Call options expired and 200 shares of VLO stock were retained in the Covered Calls Advisor Portfolio
08/19/2019 Sold 200 shares VLO stock at $79.45 to close out position

The overall performance result (including commissions) was as follows:
Covered Calls Cost Basis: $15,832.29
= ($81.49 - $2.36)* 200 shares + $6.29 commissions

Net Profit Components:
(a) Options Income: +$472.00
= ($2.36 * 200 shares)
(b) Dividend Income: +$180.00
= $.90 x 200 shares
(c) Capital Appreciation: -$412.95
= ($79.45 -$81.49) * 200 shares - $4.95 commission

Total Net Profit: +$239.05
= (+$472.00 options income +$180.00 dividend income -$412.95 capital appreciation)

Absolute Return: +1.5%
= +$239.05/$15,832.29
Equivalent Annualized Return: +32.4%
= (+$239.05/$15,832.29)*(365/17 days)


2. Wells Fargo Bank N.A. (WFC) -- Covered Calls Position Closed

The transactions were as follows:
08/02/2019 Bought 500 shares of Wells Fargo stock @ $46.72 per share 
08/02/2019 Sold 5 Wells Fargo Aug 16th, 2019 $46.00 Call options @ $1.09 per share
Note: this was a simultaneous Buy/Write transaction
08/08/2019 Ex-dividend of $.51 per share
08/16/2019 Wells Fargo shares closed at $44.39 which was below the $46.00 strike price, so Call options expired and 500 shares of WFC stock were retained in the Covered Calls Advisor Portfolio
08/19/2019 Sold 500 shares WFC stock at $45.25 to close out position

The overall performance result (including commissions) was as follows:
Covered Calls Cost Basis: $22,823.30
= ($46.72 - $1.09) * 500 shares + $8.30 commission

Net Profit Components:
(a) Options Income: +$545.00
= ($1.09 * 500 shares)
(b) Dividend Income: +$255.00
= $.51 x 500 shares
(c) Capital Appreciation: -$739.95
= ($45.25 -$46.72) * 500 shares - $4.95 commission

Total Net Profit: +$60.05
= (+$545.00 options income +$255.00 dividend income -$739.95 capital appreciation)

Absolute Return: +0.3%
= +$60.05/$22,823.30
Equivalent Annualized Return: +5.6%
= (+$60.05/$22,823.30)*(365/17 days)