Closed Covered Calls Positions in Las Vegas Sands Corporation and Schlumberger Ltd.

Last Friday, the Covered Calls positions in Las Vegas Sands Corporation (ticker LVS) and Schlumberger Ltd. (now named SLB and also with ticker SLB) closed out-of-the-money, so their Call options expired and their shares remained in the Covered Calls Advisor Portfolio.  Today I decided to close out both positions by selling the 400 shares of LVS at $42.76 and the 300 shares of SLB at $48.12. The transactions history for these positions and their associated return-on-investment results are detailed below.

1. Las Vegas Sands Corporation (LVS) -- Covered Calls Position Closed Out 

The Buy/Write transaction was as follows:
6/25/2024 Bought 400 shares of Las Vegas Sands Corporation @ $44.49 per share.  
6/25/2024 Sold 4 LVS July 12th, 2024 $43.00 Call options @ $2.05 per share.  The Implied Volatility of these Call options was 27.5 and the probability that the Calls will expire in-the-money on the options expiration date was 70.7% when this transaction was executed today.

7/12/2024 Four Call options expired out-of-the-money at $42.85 per share and the 400 LVS shares remain in the Covered Calls Advisor Portfolio.

7/15/2024 Closed out this LVS Covered Calls position by selling the 400 remaining shares at $42.76. 

The overall performance result (including commissions) for this Las Vegas Sands Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $16,978.68
= ($44.49 - $2.05) * 400 shares + $2.68 commission

Net Profit:
(a) Options Income: +$817.32
= ($2.05 * 400 shares) - $2.68 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (400 Las Vegas Sands Corporation shares sold at $42.76 per share): -$692.00
+($42.76 - $44.49) * 400 shares

Total Net Profit: +$125.32
= (+$817.32 options income +$0.00 dividend income -$692.00 capital appreciation)

Absolute Return-on-Investment: +0.7%
= +$125.32/$16,978.68
Annualized Return-on-Investment: +13.5%
= (+$125.32/$16,978.68) * (365/20 days)

2. Schlumberger Ltd. (SLB) -- Covered Calls Position Closed Out
The buy/write transaction was:

3/26/2024 Bought 300 shares of SLB stock @ $54.08 per share.  
3/26/2024 Sold 3 SLB April 19th, 2024 $52.50 Call options @ $2.48 per share.  Note: the Implied Volatility of the Calls was 26.3 when this position was established.  
4/19/2024 300 SLB shares closed out-of-the-money so 3 Calls expired and 300 SLB shares remain in the Covered Calls Advisor Portfolio.
4/23/2024 Continued Covered Calls position by selling 3 SLB 5/3/2024 Call options at the $50.00 strike price for $.76 per share when the stock price was $49.65.

5/3/2024 Three SLB Calls closed out-of-the-money at $47.77 on their options expiration date, so the Call expired and 300 SLB shares remain in the Covered Calls Advisor Portfolio.

5/6/2024 This SLB Covered Calls position was continued by selling 3 May 17th, 2024 $50.00 Calls at $.27 per share when the stock was trading at $48.25. 

5/17/2024 Rolled out the 3 SLB 5/17/2024 $50.00 Calls to 3 6/21/2024 $50.00 Calls at a net credit of $.67 per share.
6/5/2024 Upcoming ex-dividend of $.275 per share. 

6/19/2024 Three SLB Calls expired out-of-the-money and the 300 SLB shares remain in the Covered Calls Advisor Portfolio.

6/24/2024 Continued this Covered Calls position by selling-to-open 3 SLB 7/12/2024 $48.00 Call options at $.48 when the stock price was $46.76 per share against the 300 SLB shares owned.

7/12/2024 Three Call options expired out-of-the-money at $46.38 per share and the 300 SLB shares remain in the Covered Calls Advisor Portfolio.

7/15/2024 Closed out this SLB Covered Calls position by selling the 300 remaining shares at $48.12. 

The overall performance result (including commissions) for this position is as follows:
Covered Calls Net Investment: $15,482.01
= ($54.08 - $2.48) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$1,393.95
= ($2.48 + $.76 + $.27 -$.01 + $.70 + $.48) * 300 shares - $10.05 commissions
(b) Dividend Income: +$82.50
= $.275 per share x 300 shares
(c) Capital Appreciation (300 SLB shares sold at $48.12 per share): -$1,788.00
= ($48.12 strike price - $54.08 stock purchase price) * 300 shares

Total Net Profit: -$311.55
= (+$1,393.95 options income + $82.50 dividend income - $1,788.00 capital appreciation)

Absolute Return-on-Investment: -2.0% = -$311.55/$15,482.01

Equivalent Annualized-Return-on-Investment: -6.6%
= (-$311.55/$15,482.01 * (365/111 days)

Jeff Partlow (The Covered Calls Advisor)
partlow@cox.net