During this past month, the Covered Calls Advisor Portfolio held a total of thirteen positions. Nine positions were closed out at a profit, two positions were closed out at a loss, and two positions expired out-of-the-money on yesterday's monthly options expiration date (so those shares currently remain in the Covered Calls Advisor Portfolio).
The specific results for each position are summarized as follows:
- Five Covered Calls positions expired in-the-money (stock price above the strike price) on yesterday's December 15th, 2023 monthly options expiration date: as follows:
- Cigna Group -- +3.5% absolute return-on-investment in 16 days (equivalent to a +79.6% annualized return-on-investment).
- Match Group Inc. -- -8.8% absolute return-on-investment in 88 days (equivalent to a -36.4% annualized return-on-investment).
- Microsoft Corporation -- +0.8% absolute return-on-investment in 9 days (equivalent to a +32.9% annualized return-on-investment).
- Shutterstock Inc. -- +5.2% absolute return-on-investment in 30 days (equivalent to a +63.4% annualized return-on-investment).
- Walmart Inc. -- +1.2% absolute return-on-investment in 14 days (equivalent to a +30.4% annualized return-on-investment).
- Three Covered Calls positions expired in-the-money on their respective Weekly options expiration dates during the past month as follows:
- Amazon.com Inc. -- +1.7% absolute return-on-investment in 15 days (equivalent to a +41.5% annualized return-on-investment).
- iShares 20+ Year Treasury Bond ETF -- +1.1% absolute return-on-investment in 14 days (equivalent to a +28.4% annualized return-on-investment).
- NVIDIA Corporation -- +1.7% absolute return-on-investment in 16 days (equivalent to a +38.8% annualized return-on-investment).
- Two Covered Calls positions were closed out by early assignment on the last trading day prior to their ex-dividend dates as follows:
- Suncor Energy Inc. -- +1.0% absolute return-on-investment in 9 days (equivalent to a +40.1% annualized return-on-investment).
- Taiwan Semiconductor Manufacturing Co. Ltd. -- +0.9% absolute return-on-investment in 10 days (equivalent to a +34.1% annualized return-on-investment).
- One Covered Calls position was closed out by early decision at a loss: iShares China Large-Cap ETF -- -5.4% absolute return-on-investment in 94 days (equivalent to a -20.8% annualized return-on-investment).
- Two Covered Calls positions closed out-of-the-money yesterday on their December 15th, 2023 monthly options expiration date, so the Call options expired and the shares now remain in the Covered Calls Advisor Portfolio. Five hundred shares of Halliburton Company closed at $35.82 per share, just below the $36.00 strike price and 400 shares of Halozyme Therapeutics Inc. closed at $38.55 which was below its $40.00 strike price. Early next week, decisions will be made to either close out the positions by selling the shares or to continue the Covered Calls positions by selling future Call options against the shares currently held. As always, the details of all transactions-to-date will be posted on this blog site on the same day the transactions occur.
During the past year (last 12 months) 115 of 130 positions (88.5%) 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 +11.8% during the past year and the average holding period for these 130 closed positions was 19.1 days. In comparison, the benchmark S&P 500 has returned +17.5% during the same prior one-year period. The primary reason the CCAP underperformed the S&P 500 benchmark this year is because of CCAP's significant underweighting of the so-called "magnificent seven" mega-cap tech companies compared with their market-cap weighting in the S&P 500 (SPY) index. The results for my Covered Calls Advisor Portfolio (since I began tracking performance in 2021) in comparison with the S&P 500 has been as follows:
2021 -- SPY was +27.6% and the CCAP was +39.6%
2022 -- SPY was -15.8% and the CCAP was +19.2%
I am looking forward to continuing this Covered Calls Advisor blog during 2024. Covered Calls investing has been very good to me (and therefore also for my family) over the past 30+ years -- so I will continue to make this blog freely available to anyone interested in learning about implementing a successful Covered Calls investing strategy. As always, I look forward to replying to your emails at partlow@cox.net any time you would like my feedback on anything related to the Covered Calls investing strategy.
Best Regards (and Happy Holidays to All),
Jeff Partlow
Covered Calls Advisor
partlow@cox.net
