A Covered Calls position was established today in KraneShares CSI China Internet ETF (ticker KWEB). Five hundred shares were purchased at $39.64 and five October 31st, 2025 weekly Call options were sold at the $38.00 strike price at $2.30 per share--a buy/write net debit transaction of $37.34 per share which provides a maximum $.66 per share time value profit potential. The probability of the Calls being in-the-money on the options expiration date was 67.2% when this transaction occurred.
As detailed below, a potential result is +1.7% absolute return-on-investment (equivalent to +42.6% annualized
return-on-investment for the next 15 days) if the KWEB share price is in-the-money (i.e. above the $38.00 strike price) and therefore assigned on its October 31st, 2025 options expiration date.
KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position
The Buy/Write transaction was as follows:
10/16/2025 Bought 500 shares of KraneShares CSI China Internet ETF @ $39.64 per share.
10/16/2025 Sold 5 KWEB October 31st, 2025 $38.00 Call options @ $2.30 per share. The Implied Volatility of the Calls was 39.6 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: $18,673.35
= ($39.64 - $2.30) * 500 shares + $3.35 commission
Net Profit:
(a) Options Income: +$1,146.65
= ($2.30 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 500 CSI China Internet ETF shares assigned at $38.00 strike price at expiration): -$820.00
+($38.00 strike price - $39.64 shares purchase price) * 500 shares
Total Net Profit Potential (If 500 CSI China Internet ETF shares are assigned because they are in-the-money at the options expiration date): +$326.65
= (+$1,146.65 options income + $0.00 dividend income - $820.00 capital appreciation)
Potential Absolute Return-on-Investment: +1.7%
= +$326.65/$18,673.35
Potential Annualized Return-on-Investment: +42.6%
= (+$326.65/$18,673.35) * (365/15 days)
