A short-term Covered Calls position was established this afternoon in KraneShares CSI China Internet ETF (ticker KWEB). Six hundred shares were purchased at $40.66 and six October 3rd, 2025 weekly Call options were sold at the $40.00 strike price at $1.18 per share--a buy/write net debit transaction of $39.48 per share which provides a maximum $.52 per share time value profit potential. The probability of the Calls being in-the-money on the options expiration date was 61.7% when this transaction occurred.
As detailed below, a potential result is +1.3% absolute return-on-investment (equivalent to +47.4% annualized
return-on-investment for the next 10 days) if the KWEB share price is in-the-money (i.e. above the $40.00 strike price) and therefore assigned on its October 3rd, 2025 options expiration date.
KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position
The Buy/Write transaction was as follows:
9/23/2025 Bought 600 shares of CSI China Internet ETF @ $40.66 per share.
9/23/2025 Sold 6 KWEB October 3rd, 2025 $40.00 Call options @ $1.18 per share. The Implied Volatility of the Calls was 30.7 when this position was established.
A possible overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows:
KWEB Covered Calls Net Investment: $23,692.02
= ($40.66 - $1.18) * 600 shares + $4.02 commission
Net Profit:
(a) Options Income: +$703.98
= ($1.18 * 600 shares) - $4.02 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 600 CSI China Internet ETF shares assigned at $40.00 strike price at expiration): -$396.00
+($40.00 strike price - $40.66 shares purchase price) * 600 shares
Total Net Profit Potential (If 600 CSI China Internet ETF shares are assigned because they are in-the-money at the options expiration date): +$307.98
= (+$703.98 options income + $0.00 dividend income - $396.00 capital appreciation)
Potential Absolute Return-on-Investment: +1.3%
= +$307.98/$23,692.02
Potential Annualized Return-on-Investment: +47.4%
= (+$307.98/$23,692.02) * (365/10 days)
