Continuation of Covered Calls Position in Mondelez International Inc.

The Covered Calls Advisor Portfolio has a Covered Calls position in Mondelez International Inc. (ticker MDLZ) which expired last Friday with the stock at $67.99 which was below the $71.00 strike price at last Friday's options expiration.  An important reason why the stock price has declined recently is that the price of cocoa has spiked by 40% during the last month and among the companies owned by Mondelez are Cadbury and Toblerone.  Today this position was continued by rolling out to the April 19th, 2024 monthly options expiration date at the $69.00 strike price by selling-to-open three Calls at $.50 per share this morning when the price of Mondelez stock was $68.16.  This two-week extension to a 4/19/2024 expiration is prior to their next quarterly earnings report which is on April 25th and is an effort to repair the unrealized loss in this position back closer to breakeven.  

As detailed below, a potential outcome for this Mondelez investment if the stock is in-the-money and therefore assigned on the options expiration date is -1.0% absolute return-on-investment over 31 days (equivalent to -11.5% annualized-return-on-investment) if the stock closes above the $69.00 strike price on the April 19th, 2024 options expiration date.  The transactions history of this Mondelez Covered Calls position to-date along with a potential return-on-investment result if the stock is assigned on the 4/19/2024 options expiration date is as follows:

Mondelez International Inc. (MDLZ) -- Continuation of Covered Calls Position

The buy/write transaction was:
3/19/2024 Bought 300 Mondelez shares @ $72.25
3/19/2024 Sold 2 MDLZ 4/5/2024 $71.00 Call options @ $1.65 per share.  The Implied Volatility of these Calls was 11.9 when this position was established.

4/5/2024 Call options expired out-of-the-money and the 300 MDLZ shares remain in the Covered Calls Advisor Portfolio.

4/8/2024 Continued this Covered Calls position by selling 3 MDLZ April 19th, 2024 $69.00 Call options against the 300 shares owned.

A possible overall performance result (including commissions) if the stock closes above the $69.00 strike price on the 4/19/2024 options expiration date would be as follows:
Covered Calls Net Investment: $21,182.01
= ($72.25 - $1.65) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$640.98
= ($1.65 + $.50) * 300 shares - $4.02 commissions
(b) Dividend Income: +$127.50
= $.425 per share x 300 shares
(c) Capital Appreciation (If MDLZ shares assigned with stock above the $69.00 strike price at the April 19th options expiration): -$975.00
= ($69.00 -$72.25) * 300 shares

Potential Net Profit (If Mondelez price is above $69.00 strike price at the April 19th options expiration): -$206.52
= (+$640.98 options income +$127.50 dividend income - $975.00 capital appreciation)

Absolute Return-on-Investment (If MDLZ price is above $69.00 strike price at the April 19th options expiration date): -1.0%
= -$206.52/$21,182.01
Equivalent Annualized Return-on-Investment (If assigned on the 4/5/2024 options expiration date): -11.5%
= (-$206.52/$21,182.01) * (365/31 days)