Friday, January 30, 2026

Closed Out Covered Calls Position in Uber Technologies Inc.

My Uber Technologies Covered Calls position was scheduled to expire today at the $81.00 strike price, and the position was trading slightly out-of-the-money this afternoon when I decided to unwind (i.e. close out) this position. Uber's quarterly earnings report is next Wednesday and I prefer not to maintain positions on the earnings reporting day because of the heightened stock price volatility. So, this afternoon I closed out this Covered Calls position by buying-to-close the 2 UBER January 30th, 2026 Call options at $.03 per share and simultaneouly selling the 200 UBER shares at $80.08. The detailed transactions and return-on-investment results are as follows:

Uber Technologies Inc. (UBER) -- Closed Out this Uber Covered Calls Position
The net debit buy/write limit order was executed as follows:
1/22/2026 Bought 200 shares of Uber Technologies Inc. stock @ $82.66 per share.  
1/22/2026 Sold 2 Uber January 30th, 2026 $81.00 Call options @ $2.72 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 36.9 when this position was established which, as preferred, is well above the current VIX of 15.5.  
1/30/2026 Unwound this Covered Calls position by simultaneously buying-to-close the two  1/30/2026 $81.00 Call options at $.03 per share and selling the 200 Uber shares at $80.08.

The overall performance result (including commissions) is as follows:
Covered Calls Net Investment: $15,989.34
= ($82.66 - $2.72) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$536.66
= ($2.72 - $.03) * 200 shares - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (Uber stock sold at $80.08 per share): -$516.00
= ($80.08 - $82.66 stock purchase price) * 200 shares

Total Net Profit: +$20.66
= (+$536.66 options income + $0.00 dividend income - $516.00 capital appreciation)

Absolute Return-on-Investment: +0.13%
= +$20.66/$15,989.34
Equivalent Annualized-Return-on-Investment: +5.9%
= (+$20.66/$15,989.34) * (365/8 days)