As detailed below, a potential outcome for this CBOE Global Markets Inc. investment if the stock is in-the-money and therefore assigned on the options expiration date is +2.3% absolute return-on-investment over 65 days (equivalent to +12.9% annualized-return-on-investment) if the stock closes above the $34.00 strike price on the May 10th, 2024 options expiration date. The transactions history of this APA Covered Calls position to-date along with a potential return-on-investment result if the stock is assigned on the May 10th, 2024 options expiration date is as follows:
CBOE Global Markets Inc. (CBOE) -- New Covered Call Position
The buy/write transaction was:
5/15/2024 Bought 100 CBOE shares @ $178.50
5/15/2024 Sold 1 CBOE 6/21/2024 $175.00 Call option @ $6.70. The Implied Volatility of the Call option was 18.4 when this transaction occurred.
5/30/2024 Quarterly ex-dividend of $.55 per share
6/21/2024 CBOE stock price was below the $175.00 strike price, so the Call expired and the 100 CBOE shares remained in the Covered Calls Advisor Portfolio.
7/1/2024 Continued this CBOE Covered Call position by selling one July 19th, 2024 $172.50 Call option @ $2.70 per share when the stock was trading today at $171.47.
A possible overall performance result (including commissions) for this CBOE Covered Call position is as follows:
Covered Call Net Investment: $17,180.67
= ($178.50 - $6.70) * 100 shares + $.67 commission
Net Profit Components:
(a) Options Income: +$938.66
= ($6.70 + $2.70) * 100 shares - $1.34 commissions
(b) Dividend Income ($.55 ex-dividend on 5/30/2024): +55.00
(c) Capital Appreciation (If shares assigned at $172.50 strike price at options expiration): -$600.00 = +($172.50 - $178.50) * 100 shares
