During this past month, the Covered Calls Advisor Portfolio held a total of sixteen Covered Calls positions. Fifteen positions were closed out at a profit and one position was closed out at a loss.
The specific results for each position are summarized as follows:
- Eight Covered Calls positions expired in-the-money (stock price above the strike price) during the past month on their weekly options expiration dates and were therefore assigned at their strike prices with the following results:
- American International Group Inc. (AIG) -- +1.3% absolute return in 12 days (equivalent to a +38.6% annualized return-on-investment).
- Uber Technologies Inc. (UBER) -- +1.4% absolute return in 17 days (equivalent to a +30.6% annualized return-on-investment).
- The Cigna Group (CI) -- -0.5% absolute return in 122 days (equivalent to a -1.6% annualized return-on-investment).
- General Motors Company (GM) -- +1.1% absolute return in 11 days (equivalent to a +36.7% annualized return-on-investment).
- Gilead Sciences Inc. (GILD) -- +1.7% absolute return in 22 days (equivalent to a +27.5% annualized return-on-investment).
- iShares China Large-Cap ETF (FXI) -- +5.1% absolute return in 25 days (equivalent to a +74.9% annualized return-on-investment).
- PayPal Holdings Inc. (PYPL) -- +0.8% absolute return in 10 days (equivalent to a +29.6% annualized return-on-investment).
- Uber Technologies Inc. (UBER) -- +1.6% absolute return in 16 days (equivalent to a +36.9% annualized return-on-investment).
- Seven Covered Calls positions were closed out by early assignment on the last business day prior to their ex-dividend dates with the following results:
- iShares 20+ Year Treasury Bond ETF (TLT) -- +0.3% absolute return in 2 days (equivalent to a +55.0% annualized return-on-investment).
- JPMorgan Chase & Co. (JPM) -- +0.8% absolute return in 7 days (equivalent to a +42.6% annualized return-on-investment).
- Bristol-Myers Squibb Co. (BMY) -- +0.7% absolute return in 8 days (equivalent to a +33.8% annualized return-on-investment).
- Abbvie Inc. (ABBV) -- +0.3% absolute return in 3 days (equivalent to a +40.1% annualized return-on-investment).
- Sociedad Quimica Y Minera de Chile SA (SQM) -- +0.9% absolute return in 7 days (equivalent to a +44.6% annualized return-on-investment).
- APA Corporation (APA) -- +1.3% absolute return in 3 days (equivalent to a +154.9% annualized return-on-investment).
- CVS Health Corporation (CVS) -- +0.4% absolute return in 3 days (equivalent to a +48.4% annualized return-on-investment).
- One Covered Calls position in Halliburton Company (HAL) met my early closeout rule-of-thumb decision criteria since the stock had moved higher very soon after the position was established. So I unwound it early (prior to its expiration date) and achieved +1.3% absolute return in 5 days (equivalent to a +97.4% annualized return-on-investment).
During the past year (last 12 months) 117 of 129 positions (90.7%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit. The Covered Calls Advisor Portfolio weighted average annualized-return-on-investment (aroi) was +23.0% during the past year and the average holding period for these 129 closed positions was 18.5 days. In comparison, the benchmark S&P 500 returned +14.5% during the same prior one-year period.
This Covered Calls Advisor blog is available to anyone interested in learning about implementing a successful Covered Calls investing strategy. As always, I also encourage you to email me at partlow@cox.net any time you would like my feedback on your comments or questions on anything related to the Covered Calls investing strategy. Since all sixteen positions were closed out this month and there are only two current positions remaining in the Covered Calls Advisor Portfolio, I will be looking to establish several new Covered Calls positions during the next several days.
Best Wishes and Godspeed,
Jeff Partlow
Covered Calls Advisor
partlow@cox.net
