As detailed below, two potential return-on-investment results are: (1) +2.7% absolute return-on-investment (equivalent to +7.3% annualized return-on-investment for the 134 days holding period) if the iShares China Large-Cap ETF price is unchanged at today's $28.03 price on the June 16th, 2023 expiration date; and (2) +6.0% absolute return-on-investment (equivalent to +16.2% annualized return-on-investment for the 134 days holding period) if it is in-the-money (i.e. above the $29.00 strike price) on the June 16th, 2023 options expiration date.
iShares China Large-Cap ETF (FXI) -- Covered Calls Position Continued by Rollout
The original Buy/Write transaction was as follows:
2/3/2023 Bought 1,000 shares of iShares China Large-Cap ETF @ $31.10 per share
2/3/2023 Sold 10 FXI Feb 17th, 2023 $30.00 Call options @ $1.52 per share
2/17/2023 Ten FXI Call options expired out-of-the-money and 1,000 shares remain in the Covered Calls Advisor Portfolio
3/2/2023
Continued iShares China Large-Cap ETF Covered Calls position by selling ten March 17th,
2023 $30.00 Call options @ $.59 per share. The stock price was $29.50
when this transaction occurred.
3/17/2023 Ten FXI Call options expired out-of-the-money and 1,000 shares remain in the Covered Calls Advisor Portfolio
3/23/2023
Continued iShares China Large-Cap ETF Covered Calls position by selling ten April 21st,
2023 $30.00 Call options @ $.64 per share. The stock price was $29.08
when this transaction was made.
4/21/2023 Ten FXI Call options expired out-of-the-money and 1,000 shares remain in the Covered Calls Advisor Portfolio
5/1/2023
Continued iShares China Large-Cap ETF Covered Calls position by selling ten May 19th,
2023 $29.00 Call options @ $.47 per share. The stock price was $28.43 when this transaction was made.
5/19/2023 Ten FXI Call options expired out-of-the-money and 1,000 shares remain in the Covered Calls Advisor Portfolio.
5/22/2023 Continued iShares China Large-Cap ETF Covered Calls position by selling ten June 2nd, 2023 $29.00 Call options @ $.31 per share. The stock price was $28.44 when this transaction was made.
6/2/2023 Ten FXI Call options expired out-of-the-money and 1,000 shares remain in the Covered Calls Advisor Portfolio.
6/6/2023 Continued iShares China Large-Cap ETF Covered Calls position by selling ten June 16th, 2023 $29.00 Call options @ $.22 per share. The stock price was $28.03 when this transaction was made.
6/7/2023 Upcoming semi-annual distribution at $.1544 per share.
Two possible overall performance results (including commissions) for this iShares China Large-Cap ETF Covered Calls position are as follows:
FXI Covered Calls Net Investment: $29,586.70
= ($31.10 - $1.52) * 1,000 shares + $6.70 commission
Net Profit:
(a) Options Income: +$3,709.92
= ($1.52 + $.59 + $.64 + $.47 + $.31 + $.22) * 1,000 shares - $40.20 commissions
(b) Semi-Annual Ex-Distribution Income: +$154.40
= $.1544 semi-annual distribution x 1,000 shares
(c) Capital Appreciation (If the iShares China Large-Cap ETF price is unchanged at today's $28.03 price on the June 16th, 2023 expiration date): -$3,070.00
+($28.03 current stock price - $31.10 stock purchase price) * 1,000 shares; OR
(c) Capital Appreciation (If iShares China Large-Cap ETF shares are assigned at the $29.00 strike price at the 6/16/2023 options expiration date):
-$2,100.00
+($29.00 options strike price - $31.10 stock purchase price) * 1,000 shares
= (+$1,764.32/$29,586.70) * (365/134 days)
