A Covered Calls position was established today in KraneShares CSI China Internet ETF (ticker KWEB). Three hundred shares were purchased at $37.41 and three December 19th, 2025 monthly Call options were sold at the $37.00 strike price at $1.13 per share--a buy/write net debit limit transaction of $36.28 per share which provides a maximum $.72 per share [$1.13 Call options premium - ($37.41 stock purchase price - $37.00 strike price)] time value profit potential. The probability of the Calls being in-the-money on the options expiration date was 55.5% when this transaction occurred.
As detailed below, a potential result is +2.0% absolute return-on-investment (equivalent to +42.2% annualized
return-on-investment for the next 17 days) if the KWEB share price is in-the-money (i.e. above the $37.00 strike price) and therefore assigned on its December 19th, 2025 options expiration date.
KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position
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.
A possible 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) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 CSI China Internet ETF shares assigned at $37.00 strike price at expiration): -$123.00
+($37.00 strike price - $37.41 shares purchase price) * 300 shares
Total Net Profit Potential (If 300 CSI China Internet ETF shares are assigned because they are in-the-money at the options expiration date): +$213.99
= (+$336.99 options income + $0.00 dividend income - $123.00 capital appreciation)
Potential Absolute Return-on-Investment: +2.0%
= +$213.99/$10,886.01
Potential Annualized Return-on-Investment: +42.2%
= (+$213.99/$10,886.01) * (365/17 days)
