August 16th, 2024 Options Expiration Results

The Covered Calls Advisor Portfolio had two Covered Calls positions with August 16th, 2024 options expiration dates.  Both positions closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices.  Details of the transactions and the return-on-investment results for these positions are as follows:

1.  KraneShares CSI China Internet ETF (KWEB) -- Covered Calls Position Assigned on the Options Expiration Date 

The original Buy/Write transaction was as follows:
5/20/2024 Bought 1,000 shares of CSI China Internet ETF @ $31.90 per share.  
5/20/2024 Sold 10 KWEB June 21st, 2024 $30.00 Call options @ $2.44 per share.  The Implied Volatility of the Calls was 31.2 when this position was established.  

6/21/2024 Ten KWEB Calls expired out-of-the-money and the 1,000 KWEB shares remain in the Covered Calls Advisor Portfolio.

6/24/2024 Continued this Covered Calls position by selling-to-open 10 KWEB 7/19/2024 $30.00 Call options at $.33 when the KWEB price was $28.60 per share against the 1,000 KWEB shares owned.

7/19/2024 Ten KWEB Calls expired out-of-the-money and the 1,000 KWEB shares remain in the Covered Calls Advisor Portfolio.

7/22/2024 Continued this Covered Calls position by selling-to-open 10 KWEB 8/2/2024 $29.00 Call options at $.17 when the KWEB price was $27.70 per share against the 1,000 KWEB shares owned.

8/7/2024 Continued this Covered Calls position by selling-to-open 10 KWEB 8/16/2024 $26.50 Call options at $.38 against the 1,000 KWEB shares owned.

8/16/2024 Ten KWEB Calls closed in-the-money at $26.99 per share, so the Calls expired and the 1,000 KWEB shares were sold at the $26.50 strike price. 

The overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows: 

KWEB Covered Calls Net Investment: $29,466.70

= ($31.90 - $2.44) * 1,000 shares + $6.70 commission

Net Profit Components:
(a) Options Income: +$3,293.20
= ($2.44 + $.33 + $.17 +$.38) * 1,000 shares - $26.80 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$5,400
+($26.50 strike price - $31.90 shares purchase price) * 1,000 shares

Total Net Loss: - $2,106.80
= (+$3,293.20 options income + $0.00 dividend income - $5,400.00 capital appreciation)

Absolute Return-on-Investment: -7.1%
= -$2,106.80/$29,466.70
Annualized Return-on-Investment: -29.7%
= (-$2,106.80/$29,466.70) * (365/88 days)

2. Las Vegas Sands Corporation (LVS) -- Covered Calls Position Assigned on the Options Expiration Date 
The buy/write transaction was:
8/1/2024 Bought 500 Las Vegas Sands shares @ $38.44
8/1/2024 Sold 5 LVS 8/16/2024 $37.00 Call options @ $1.77 per share.
Note: Implied Volatility (IV) of the Call options was at 24.9 when this position was transacted which, as preferred, is above the current VIX of 17.8.   
8/6/2024 Quarterly ex-dividend of $.20 per share.
8/16/2024 Five LVS Calls closed in-the-money at $40.37 per share, so the Calls expired and the 500 LVS shares were sold at the $37.00 strike price. 

The overall performance results (including commissions) for this Las Vegas Sands Corp. Covered Calls position are as follows:
Covered Calls Net Investment: $18,338.35
= ($38.44 - $1.77) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$881.65
= ($1.77 * 500 shares) - $3.35 commission
(b) Dividend Income: +$100.00
= ($.20 dividend per share x 500 shares)

(c) Capital Appreciation: -$720.00

+($37.00 strike price - $38.44 stock purchase price) * 500 shares

Total Net Profit: +$261.65

= (+$881.65 options income + $100.00 dividend income - $720.00 capital appreciation)

Absolute Return-on-Investment: +1.4%

= +$261.65/$18,338.35

Annualized Return-on-Investment: +34.7%

= (+$261.65/$18,338.35) * (365/15 days)