Rolled Out Covered Calls Position in iShares China Large-Cap ETF

The Covered Calls Advisor Portfolio has a Covered Calls position in iShares China Large-Cap ETF (ticker FXI) that has an expiration date today at the $36.50 strike price. FXI's price was out-of-the-money at $36.11 early this afternoon and the remaining time value in the Calls had declined to only $.01.  I remain confident in the iShares China Large-Cap ETF.  Some valuation metrics such as P/E ratio and Price-to-Sales (P/S) ratio for FXI are approximately only one-half of those of SPY.  Also, China is a rare country in that it will likely be implementing quantitative easing this year while the U.S. will be pivoting to quantitative tightening this year.  So, I decided to roll out the existing Covered Calls two weeks to the February 11th, 2022 expiration at the same $36.50 strike price. This rollout (credit spread) transaction was executed at a net credit of $.69 per share ($.70 credit - $.01 debit).   

As detailed below, two potential return-on-investment results are: 

•  +1.9% absolute return (equivalent to +23.1% annualized return over a period of 30 days) if the iShares China Large-Cap ETF price is unchanged from today's price of $36.11 on the February 11th, 2022 options expiration date; OR 

• +3.0% absolute return (equivalent to +36.3% annualized return over 30 days) if FXI is in-the-money and therefore assigned at the $36.50 strike price on the Feb. 11th options expiration date.
  

iShares China Large-Cap ETF (FXI) -- Covered Calls Position Rolled Out
The net debit limit order buy/write transaction was as follows:
01/13/2022 Bought 500 shares of iShares China Large-Cap ETF shares @ $37.76 
01/13/2022 Sold 5 FXI January 28th, 2022 $36.50 Call options @ $1.66 per share.  The Implied Volatility of the Calls was 28.3 and the Delta was 74.1 when this Covered Calls position was established.
1/28/2022 Bought-to-Close 5 FXI Jan. 28th, 2022 $36.50 Call Options @ $.01 per share and simultaneously Sold-to-Open 5 FXI Feb. 11th, 2022 $36.50 Calls @ $.70 per share.

Two potential overall performance results (including commissions) for this iShares China Large-Cap ETF Covered Calls position are as follows:
Covered Calls Cost Basis: $18,053.35
= ($37.76 - $1.66) * 500 shares + $3.35 commissions

Net Profit Components:
(a) Options Income: +$1,168.30
= ($1.66 - $.01 + $.70) * 500 shares - $6.70 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If FXI share price unchanged at $36.11 at 2/11/2022 options expiration): -$825.00
= +($36.11 - $37.76) * 500 shares; OR
(c) Capital Appreciation (If FXI shares are in-the-money and therefore assigned at the $36.50 strike price at the 2/11/2022 options expiration): -$630.00
+($36.50 - $37.76) * 500 shares

(a) Total Net Profit (If iShares China Large-Cap ETF stock price is unchanged at $36.11 at the Feb. 11th, 2022 options expiration date): +$343.30
= (+$1,168.30 Call options income +$0.00 dividend income -$825.00 capital appreciation); OR
(b) Total Net Profit (If FXI price closes above the $36.50 strike price and is assigned at the Feb. 11th, 2022 options expiration date): +$538.30
= (+$1,168.30 Call options income +$0.00 dividend income -$630.00 capital appreciation)

1. Absolute Return-on-Investment (If FXI share price is unchanged at $36.11 at the 2/11/2022 options expiration date): +1.9%
= +$343.30/$18,053.35
Equivalent Annualized Return-on-Investment: +23.1%
= (+$343.30/$18,053.35)*(365/30 days); OR
2. Absolute Return-on-Investment (If FXI price closes above the $36.50 strike price and is assigned at the Feb. 11th, 2022 options expiration date): +3.0%
= +$538.30/$18,053.35
Equivalent Annualized Return-on-Investment: +36.3%
= (+$538.30/$18,053.35)*(365/30 days)