Closed Out KraneShares CSI China Internet ETF Covered Calls Position

Last Friday, the Covered Calls position in KraneShares CSI China Internet ETF Covered Calls (ticker KWEB) closed out-of-the-money at $36.50 which was below its $37.00 strike price.  KWEB went ex-distribution today at $2.09623 per share and I decided to close out this position by selling the 300 KWEB shares.  The transactions history for this KWEB Covered Calls position and its associated return-on-investment results are detailed below.

 
KraneShares CSI China Internet ETF (KWEB) -- Covered Calls Position Closed Out 

The Buy/Write transaction was as follows:
12/2/2025 Bought 300 shares of KraneShares CSI China Internet ETF @ $37.41 per share.  
12/2/2025 Sold 3 KWEB December 19th, 2025 $37.00 Call options @ $1.13 per share.  The Implied Volatility of the Calls was 28.7 when this position was established.

12/19/2025 300 KWEB shares closed out-of-the-money at $36.50 so the 3 Call options expired and 300 KWEB shares remain in the Covered Calls Advisor Portfolio.

12/22/2025 Ex-distribution of $2.09623 per share.

12/22/2025 Sold 300 KWEB shares at $34.74 per share.  

The overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows: 

KWEB Covered Calls Net Investment: $10,886.01

= ($37.41 - $1.13) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$336.99
= ($1.13 * 300 shares) - $2.01 commission
(b) Distribution Income: +$628.87 = $2.09623 per share x 300 shares
(c) Capital Appreciation (300 CSI China Internet ETF shares sold at $34.74 per share): -$801.00
+($34.74 ETF selling price - $37.41 KWEB shares purchase price) * 300 shares

Total Net Profit: +$164.86
= (+$336.99 options income + $628.87 distribution income - $801.00 capital appreciation)

Absolute Return-on-Investment: +1.5%
= +$164.86/$10,886.01
Annualized Return-on-Investment: +27.6%
= (+$164.86/$10,886.01) * (365/20 days)

I will continue to monitor KWEB's price movements over the next few days.  I remain bullish on its price potential for 2026 and won't hesitate to re-establish another KWEB Covered Calls position.