Covered Calls Positions Closed Out for Discover Financial Services and iShares 20+ Year Treasury Bond ETF

1. The Covered Calls Advisor Portfolio had a Covered Calls position in Discover Financial Services (DFS) at the November 29th, 2024 weekly options expiration date and at the $167.50 strike price.  The position closed well in-the-money yesterday at $182.43 per share, so the Call options expired and the 200 DFS shares were sold at their $167.50 strike price with the following results: +2.2% absolute return (equivalent to +50.6% annualized return-on-investment) for the 16 days of this Covered Calls investment.  The blog post history when this position was established is here.

2.  I was notified early this morning by Schwab that the three Call options in my iShares 20+ Year Treasury Bond ETF (ticker TLT) December 6th, 2024 Covered Calls position were exercised yesterday.  Because the iShares 20+ Year Treasury Bond ETF price increased from $90.54 when this position was established to $94.02 at yesterday's market close, the original $.45 time value in the Calls when the position was established had declined on yesterday's market close to $0.00.  So, with seven days remaining until the December 6th options expiration date, the owner of these Calls exercised their option to buy the 300 TLT shares at the $89.50 strike price in order to receive Monday's approximately $.31 per share ex-dividend.  Although I will not receive todays' ex-dividend, I am pleased with the +18.2% annualized-return-on-investment (aroi) result achieved today by early assignment since it exceeds the current 4.6% yield of 30-year treasury bonds. The post when this TLT Covered Calls position was originally established is here.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net