A Covered Calls position was established today in KraneShares CSI China Internet ETF (ticker KWEB). Six hundred shares were purchased at $34.16 and six January 16th, 2026 monthly Call options were sold at the $34.00 strike price at $.78 per share--a buy/write net debit limit transaction of $33.38 per share which provides a maximum $.62 per share [$.78 Call options premium - ($34.16 stock purchase price - $34.00 strike price)] time value profit potential. The probability of the Calls being in-the-money on the options expiration date was 51.5% when this transaction occurred.
As detailed below, a potential result is +1.8% absolute return-on-investment (equivalent to +41.9% annualized
return-on-investment for the next 16 days) if KWEB's share price is in-the-money (i.e. above the $34.00 strike price) and therefore assigned on its January 16th, 2026 options expiration date.
KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position
The Buy/Write transaction was as follows:
12/31/2025 Bought 600 shares of KraneShares CSI China Internet ETF @ $34.16 per share.
12/31/2025 Sold 6 KWEB Jan. 16th, 2026 $34.00 Call options @ $.78 per share. The Implied Volatility of the Calls was 25.6 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: $20,032.02
= ($34.16 - $.78) * 600 shares + $4.02 commission
Net Profit:
(a) Options Income: +$463.98
= ($.78 * 600 shares) - $4.02 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 600 CSI China Internet ETF shares assigned at $43.00 strike price at expiration): -$96.00
+($43.00 strike price - $43.16 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): +$367.98
= (+$463.98 options income + $0.00 dividend income - $96.00 capital appreciation)
Potential Absolute Return-on-Investment: +1.8%
= +$367.98/$20,032.02
Potential Annualized Return-on-Investment: +41.9%
= (+$367.98/$20,032.02) * (365/16 days)
