This new IBIT Covered Calls position expires on the 7/31/2025 end-of-month options expiration date which is a Thursday. If assigned, the cash received from the closing out (i.e. assignment) of this position will be available for reinvestment in another Covered Calls position on the following trading day which is a Friday -- so I won't have to wait over the weekend until Monday to deploy the cash as is the norm since most options expiration dates occur on Fridays.
A moderately in-the-money Covered Calls positions was established and the probability that these ETF shares will close in-the-money on the options expiration date was 67.4%. This position represents a continuation for approximately two more weeks of my current Covered Calls position in IBIT -- a position that will be assigned on today's options expiration date.
The iShares Bitcoin ETF (ticker IBIT) is the largest Bitcoin ETF and it provides direct exposure to the spot price of Bitcoin. It
was launched in January 2024 as one of the first U.S.-listed spot Bitcoin ETFs
approved by the SEC. IBIT is a good way for us retail investors to gain exposure to Bitcoin since it holds actual Bitcoin in custody (not futures contracts), thus enabling us to
gain exposure to Bitcoin’s price movements through a traditional brokerage
account without having to buy or store Bitcoin ourselves (and at a reasonably low annual management fee of .25%).
As detailed below, a potential return-on-investment result is +1.6% absolute return-on-investment (equivalent to +44.5% annualized
return-on-investment for the next 13 days) if the iShares Bitcoin ETF share price is in-the-money (i.e. above the $65.00 strike price) and therefore assigned on its Thursday July 31st, 2025 options expiration date.
iShares Bitcoin ETF (IBIT) -- New Covered Calls Position
Today's buy/write net limit order transaction was as follows:
7/18/2025 Bought 400 iShares Bitcoin ETF shares at $67.25.
7/18/2025 Bought 400 iShares Bitcoin ETF shares at $67.25.
7/18/2025 Sold 4 IBIT 7/31/2025 $65.00 Call options @ $3.27 per share. The Implied Volatility of these Calls was 37.8% when this position was established.
A possible overall performance result (including commissions) for this iShares Bitcoin ETF Covered Calls position is as follows:
Covered Calls Net Investment: $25,594.68
= ($67.25 - $3.27) * 400 shares + $2.68 commission
Net Profit:
(a) Options Income: +$1,305.32
= ($3.27 * 400 shares) - $2.68 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 400 iShares Bitcoin ETF shares assigned at the $65.00 strike price at expiration): -$900.00
+($65.00 strike price - $67.25 stock purchase price) * 400 shares
Total Net Profit Potential (If 400 IBIT shares are in-the-money and therefore assigned at the $65.00 strike price at the options expiration date): +$405.32
= (+$1,305.32 options income + $0.00 dividend income - $900.00 capital appreciation)
A possible overall performance result (including commissions) for this iShares Bitcoin ETF Covered Calls position is as follows:
Covered Calls Net Investment: $25,594.68
= ($67.25 - $3.27) * 400 shares + $2.68 commission
Net Profit:
(a) Options Income: +$1,305.32
= ($3.27 * 400 shares) - $2.68 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 400 iShares Bitcoin ETF shares assigned at the $65.00 strike price at expiration): -$900.00
+($65.00 strike price - $67.25 stock purchase price) * 400 shares
Total Net Profit Potential (If 400 IBIT shares are in-the-money and therefore assigned at the $65.00 strike price at the options expiration date): +$405.32
= (+$1,305.32 options income + $0.00 dividend income - $900.00 capital appreciation)
Potential Absolute Return-on-Investment: +1.6%
= +$405.32/$25,594.68
Potential Annualized Return-on-Investment: +44.5%
= (+$405.32/$25,594.68) * (365/13 days)
