Because of my concerns about the stock market in upcoming weeks, I sold all eight remaining positions today (all at a net loss) and will keep the proceeds invested in a Schwab Money Market Fund until I am confident of a more advantageous stock and Covered Calls investing environment. Since my wife and I are now in our 70s, we are more comfortable with preserving our existing investment capital as part of our estate plan rather than continuing with investment risks during periods like now when we perceive a greater likelihood of market underperformance. I will continue with my Covered Calls investing strategy whenever I identify specific opportunities with especially attractive risk/reward profiles and, as always, will post these positions on my Covered Calls Advisor Blog the same day the transactions occur.
The specific results for each of these thirteen closed positions are summarized as follows:
- Four Covered Calls positions expired in-the-money on their weekly options expiration dates with the following results:
- Hewlett Packard Enterprise Company -- +1.4% absolute return-on-investment in 10 days (equivalent to a +49.6% annualized return-on-investment).
- Netease Inc. -- +1.5% absolute return-on-investment in 11 days (equivalent to a +50.4% annualized return-on-investment).
- Nvidia Corporation (12/6/2024 expiration) -- +2.5% absolute return-on-investment in 15 days (equivalent to a +61.0% annualized return-on-investment).
- Nvidia Corporation (12/27/2024 expiration) -- +2.5% absolute return-on-investment in 10 days (equivalent to a +90.8% annualized return-on-investment).
- One Covered Calls position was closed out by early assignment on the last trading day prior to its ex-dividend date with the following result:
- DICK'S Sporting Goods Inc. -- +1.2% absolute return-on-investment in 10 days (equivalent to a +45.6% annualized return-on-investment).
- Eight Covered Calls positions were out-of-the-money on their respective options expiration dates and I decided to close them out today with the following results:
- Bank of America Corporation -- -4.3% absolute return-on-investment in 28 days (equivalent to a -56.4% annualized return-on-investment).
- Global Payments Inc. -- -2.0% absolute return-on-investment in 21 days (equivalent to a -35.0% annualized return-on-investment).
- iShares 20+ Years Treasury Bonds ETF -- -2.5% absolute return-on-investment in 26 days (equivalent to a -35.1% annualized return-on-investment).
- Lam Research Corporation -- -0.7% absolute return-on-investment in 21 days (equivalent to a -12.8% annualized return-on-investment).
- Merck & Co. Inc. -- -0.6% absolute return-on-investment in 24 days (equivalent to a -8.5% annualized return-on-investment).
- Schlumberger (SLB) -- -4.2% absolute return-on-investment in 28 days (equivalent to a -54.4% annualized return-on-investment).
- Tyson Foods Inc. -- -9.9% absolute return-on-investment in 34 days (equivalent to a -106.4% annualized return-on-investment).
- Uber Technologies Inc. -- -7.2% absolute return-on-investment in 24 days (equivalent to a -106.4% annualized return-on-investment).
This Covered Calls Advisor blog is available to anyone interested in learning about implementing a successful Covered Calls investing strategy. As always, I also encourage you to email me at partlow@cox.net any time you would like my feedback on your Covered Call position ideas or your questions on anything related to the Covered Calls investing strategy.
Best Wishes to All for a Happy and Prosperous New Year,
Jeff Partlow
Covered Calls Advisor
partlow@cox.net
