Continuation of Covered Calls Position in CommScope Holdings Co. Inc.

Upon the September 21st, 2018 options expiration, the five short Cash-Secured Puts position in CommScope Holdings Co. Inc. (ticker symbol COMM) expired with the stock price below the $15.00 strike price.  So, the August Put options expired and 500 shares of CommScope Holdings Co. Inc. stock were purchased in the Covered Calls Advisor Portfolio.  Today, with the price of CommScope stock at $13.01, a sell-to-open order was executed to sell 5 Sept 20, 2019 Call options at the $13.00 strike price for $.40 per share to continue this Covered Calls position.

As detailed below, the overall return-on-investment result for this CommScope Holdings Co. Inc. position if the stock is in-the-money (i.e. above the $13.00 strike price) at expiration is -5.5% absolute return in 72 days (equivalent to a -27.9% annualized return-on-investment).  


CommScope Holdings Co. Inc. (COMM) -- Continuation Covered Calls Position
The transactions to-date are as follows:
07/10/2019  Sold 5 COMM August 16th, 2019 $15.00 100% Cash-Secured Put options @ $.80
Note: the price of CommScope stock was $15.56 when this transaction was executed.
08/16/2019 Stock was below strike price at expiration, so 5 Put options expired and 500 shares of CommScope were purchased at $15.00 per share.
09/11/2019 Sold 5 COMM Sept 20, 2019 $13.00 Call options at $.40 per share
Note: the price of COMM stock was $13.01 when these Calls were sold


A possible overall performance result (including commissions) for this CommScope Holdings Covered Calls position is as follows:
Covered Calls Cost Basis: $7,508.30
= $15.00 *500 shares + $8.30 commission

Net Profit Components:
(a) Options Income: +$591.70
= ($.80 +$.40) * 500 shares - $8.30 commission
(b) Dividend Income: +$0.00

(c) Capital Appreciation (If COMM shares assigned at $13.00 strike price at options expiration): -$1,004.95
=($13.00-$15.00)* 500 shares - $4.95 commissions

Total Net Profit (If CommScope shares assigned at $13.00 at Sept 20, 2019 expiration): -$413.25

= (+$591.70 +$0.00 -$1,004.95)

Absolute Return: -5.5%

= -$413.25/$7,508.30

Annualized Return: -27.9%

= (-$413.25/$7,508.30)*(365/72 days)