As preferred by the Covered Calls Advisor, Signet's Q3 earnings report on December 4th, 2025 will be after the October 31st, 2025 monthly options expiration date. Given the Covered Calls Advisor's current cautious market outlook, an in-the-money Covered Calls position was established with a 68.5% probability of assignment on the options expiration date when the buy/write limit order was executed.
Signet is the largest specialty retail jeweler and it serves the middle to upper-middle market with its Zales, Kay, and Jared brands among others.
As detailed below, a potential return-on-investment result is +1.7%
absolute return (equivalent to +54.9% annualized return-on-investment over the next 11 days) if the stock is assigned on the October 31st options expiration date.
Signet Jewelers Ltd. (SIG) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
10/20/2025 Bought 200 Signet Jewelers shares @ $104.43
10/20/2025 Sold 2 Signet 10/31/2025 $100.00 Call options @ $5.75 per share
Note: the Implied Volatility of the Calls was 45.1 when this transaction was executed, well above the S&P 500 Volatility Index (VIX) of 19.4.
10/24/2025 Upcoming quarterly ex-dividend of $.32 per share
A possible overall performance result (including commissions) for this Signet Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $19,737.34
= ($104.43 - $5.75) * 200 shares + $1.34 commissions
Net Profit Components:
(a) Options Income: +$1,148.66
= ($5.75 * 200 shares) - $1.34 commissions
(b) Dividend Income (If Signet shares assigned at the October 31st, 2025 options expiration): +$64.00
= ($.32 dividend per share x 200 shares)
(c) Capital Appreciation (If Signet shares assigned at $100.00 strike price at options expiration): -$886.00
+($100.00 - $104.43) * 200 shares
