As detailed below, the return-on-investment result for this Winnebago Industries Covered Calls position was +0.8% absolute return in 13 days (equivalent to a +21.9% annualized return-on-investment).
Winnebago Industries Inc. (WGO) -- Covered Calls Position Closed
The transactions were as follows:
06/09/2021 Bought 400 shares of Winnebago stock @ $69.10 per share
06/09/2021 Sold 4 Winnebago June 18th, 2021 $65.00 Call options @ $4.67 per share
Note: The Implied Volatility of the Call options was 33.7 this morning when this position was established.
06/15/2021 Ex-dividend of $.12 per share for 400 WGO shares
06/18/2021 Winnebago share closed below the $65.00 strike price so 4 Call options expired and 400 shares of WGO stock remained in the Covered Calls Advisor Portfolio
06/21/2021 Sold 400 Winnebago shares at $62.82 per share.
The overall performance results (including commissions) was as follows:
Covered Calls Cost Basis: $25,774.68
= ($69.10 - $4.67) * 400 shares + $2.68 commission
Net Profit Components:
(a) Options Income: +$1,865.32
= ($4.67 * 400 shares) - $2.68 commission
Dividend Income ($.12 ex-dividend on 6/15/2021 for 400 Winnebago shares held): $48.00
= $.12 dividend per share x 400 shares
(c) Capital Appreciation (400 Winnebago shares sold at $64.82 per share): -$1,712.00
= ($64.82 - $69.10) * 400 shares
Total Net Profit: +$201.32
= (+$1,865.32 options income +$48.00 dividend income -$1,712.00 capital appreciation)
Absolute Return-on-Investment: +0.8%
= +$201.32/$25,774.68
Equivalent Annualized Return: +21.9%
= (+$201.32/$25,774.68)*(365/13 days)
