tag:blogger.com,1999:blog-49635406535531397242024-03-18T13:43:16.725-04:00 Covered Calls AdvisorCovered Calls Investing in Bull and Bear MarketsJEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comBlogger2281125tag:blogger.com,1999:blog-4963540653553139724.post-8082216415418066062024-03-18T13:42:00.000-04:002024-03-18T13:42:03.243-04:00Continuation of Covered Calls Position in Match Group Inc.The Covered Calls Advisor Portfolio has a Covered Calls position in Match Group Inc. (ticker MTCH) which expired with the stock at $33.55 which was below the $35.00 strike price at last Friday's options expiration.
Today this position was continued by rolling out to the March 28th, 2024 weekly options expiration at the $34.50 strike price by selling-to-open three Calls at $.81 per share when the
price of Match Group stock had increased to $34.76. <br /><p><b>As detailed below, a potential outcome for this Match Group investment if the stock is in-the-money and therefore assigned on the options expiration date is +2.9% absolute return-on-investment over 29 days (equivalent to +36.6</b><b><b>% annualized-return-on-investment) </b>if the stock closes above the $34.50 strike price on the March 28th, 2024 options expiration date<b>. </b></b>The transactions history of this Match Group Covered Calls position to-date along with a potential return-on-investment result if the stock is assigned on the March 28th, 2024 options expiration date is as follows:</p><div class="separator" style="clear: both;"><br /></div><div><p><b><b>Match Group Inc. (MTCH) </b></b><b>-- Continuation of</b><b> Covered Calls Position</b></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhp8jrHe-vbtLwAKZ5Tsc-jLk0hywNcb_hKnjAAGsfOBuZ2GOx-7CI-aJYibRWRiN6VRZ-MXdVd8cgOFTz_M-6vP-m_8YFtH7vMJ6S5E7L6NxZEFp0_jVkeqMCBWLyGSuL_rfdeLA_BJkEu-Bf-P2AU9ZKw4Z4Fxh1YpWga2npzZGZeTOvjJOKlmt0P/s282/MTCH%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="179" data-original-width="282" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhp8jrHe-vbtLwAKZ5Tsc-jLk0hywNcb_hKnjAAGsfOBuZ2GOx-7CI-aJYibRWRiN6VRZ-MXdVd8cgOFTz_M-6vP-m_8YFtH7vMJ6S5E7L6NxZEFp0_jVkeqMCBWLyGSuL_rfdeLA_BJkEu-Bf-P2AU9ZKw4Z4Fxh1YpWga2npzZGZeTOvjJOKlmt0P/s200/MTCH%20logo.png" width="200" /></a></div>The buy/write transaction was:<br />2/28/2024 Bought 600 Match Group Inc. shares @ $36.49.<br />2/28/2024 Sold 6 MTCH 3/15/2024 $35.00 Call options @ $2.19 per share<b>.</b><br />3/15/2024 Match Group stock price was below the $35.00 strike price, so the Calls expired and the 600 MTCH shares remained in the Covered Calls Advisor Portfolio. <div>3/18/2024 Continued this Match Group Covered Calls position by selling six March 28th, 2024 $34.50 Call options @ $.81 per share when the stock was trading today at $34.76. The Implied Volatility of these Calls was 40.6 and the Delta was 39.3 when this transaction was executed.</div><div><br /></div>A possible overall performance result (including commissions) for this Match Group Covered Calls position if assigned on its 3/28/2024 options expiration date is as follows: <br />Match Group Covered Calls Net Investment: $20,584.02<br />
= ($36.49 - $2.19) * 600 shares + $4.02 commission<br />
<br />
Net Profit:<br />
(a) Options Income: +$1,791.96<br />
= ($2.19 + $.81) * 600 shares - $8.04 commission <br />
(b) Dividend Income: +$0.00 <br />
= ($0.00 dividends per share x 600 shares)<br />(c) Capital Appreciation (If MTCH shares assigned at $34.50 strike price at expiration): -$1,194.00<br />
+($34.50 strike price - $36.49 stock purchase price) * 600 shares<p></p>
<div style="border: medium none;">Total Net Profit (If options exercised on the 3/28/2024 options expiration date): +$597.96</div>
<div style="border: medium none;">
= (+$1,791.96 options income +$0.00 dividend income -$1,194.00 capital appreciation)</div><div style="border: medium none;"><br /></div><div style="border: medium none;">
<div style="border: medium none;">Potential Absolute Return-on-Investment (If the Match Group Inc. shares are assigned at the $34.50 strike price at the March 28th, 2024 options expiration date): +2.9%</div>
<div style="border: medium none;">
= +$597.96/$20,584.02</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If 600 Match Group shares assigned at $34.50 at the 3/28/2024 options expiration date): +36.6%</div>
<div style="border: medium none;">
= (+$597.96/$20,584.02) * (365/29 days)</div>
</div>
<br />
<p></p><p></p></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-82808077141070430262024-03-16T11:23:00.002-04:002024-03-16T11:27:28.436-04:00Monthly Options Expiration Results through March 15th, 2024Each month after the monthly options expiration date, this summary report provides the results on all positions that have been closed out during the past month (i.e. since the prior month's options expiration date). So this post covers the period from the day after last month's February 16th, 2024 options expiration through yesterday's March 15th, 2024 monthly options expiration date. <p></p><p>During this past month, the Covered Calls Advisor Portfolio closed a total of twelve positions. Fortunately, all twelve positions were closed out at a profit. In addition, one Covered Calls position expired out-of-the-money on yesterday's monthly options expiration date (so those shares currently remain in the Covered Calls Advisor Portfolio). </p><p>The specific results for each position are summarized as follows: </p><ul><li>Four Covered Calls positions were closed out when their Call options expired in-the-money (stock price above the strike price) on yesterday's March 15th, 2024 monthly options expiration date as follows:</li></ul><ol style="text-align: left;"><li>Yum China Holdings Inc. -- +1.4% absolute return-on-investment in 18 days (equivalent to a +29.4% annualized return-on-investment). </li><li>Becton Dickinson & Company -- +1.0% absolute return-on-investment in 10 days (equivalent to a +38.1% annualized return-on-investment). </li><li>Schlumberger Ltd. -- +2.8% absolute return-on-investment in 46 days (equivalent to a +21.8% annualized return-on-investment).</li><li>Aptiv PLC -- +1.1% absolute return-on-investment in 11 days (equivalent to a +36.4% annualized return-on-investment).</li></ol><div><br /></div><p></p><p></p><p></p><ul style="text-align: left;"><li>Two Covered Calls positions were closed out by early decision as follows:</li></ul><ol style="text-align: left;"><li>Oshkosh Corporation -- +0.1% absolute return-on-investment in 13 days (equivalent to a +0.3% annualized return-on-investment).</li><li>Newmont Corporation -- +1.7% absolute return-on-investment in 12 days (equivalent to a +49.2% annualized return-on-investment).</li></ol><div><br /></div><p></p><ul style="text-align: left;"><li>Three Covered Calls positions were closed out by early assignment when the Call owners decided to exercise their right to close out their options prior to these companies' ex-dividend date. So, the three Covered Calls positions were closed out. The Calls expired and the shares were sold at their respective strike prices with the following results: </li></ul><ol style="text-align: left;"><li>Genuine Parts Company -- +0.9% absolute return-on-investment in 8 days (equivalent to a +40.5% annualized return-on-investment).</li><li>Newmont Corporation -- +0.9% absolute return-on-investment in 5 days (equivalent to a +68.1% annualized return-on-investment).</li><li>FedEx Corporation -- +1.1% absolute return-on-investment in 14 days (equivalent to a +28.8% annualized return-on-investment).</li></ol><div><br /></div><ul style="text-align: left;"></ul><ul style="text-align: left;"></ul><ul style="text-align: left;"><li>Three Covered Calls positions were closed out in-the-money on their weekly options expiration dates during the past month as follows:</li></ul><ol style="text-align: left;"><li>Delta Air Lines Inc. -- +1.2% absolute return-on-investment in 15 days (equivalent to a +29.4% annualized return-on-investment).</li><li>KraneShares CSI China Internet ETF -- +6.4% absolute return-on-investment in 57 days (equivalent to a +41.1% annualized return-on-investment).</li><li>Target Corporation -- +1.6% absolute return-on-investment in 14 days (equivalent to a +40.6% annualized return-on-investment).</li></ol><div><br /></div><ul style="text-align: left;"><li>One Covered Calls position closed out-of-the-money yesterday on its March 15th, 2024 monthly options expiration date, so the Call options expired and the shares now remain in the Covered Calls Advisor Portfolio. Six hundred shares of Match Group Inc. closed at $33.55 per share which was below its $35.00 strike price. Early next week, a decision will be made to either close out the position by selling the shares or to continue the Covered Calls positions by selling future Call options against the shares currently held. As always, the details of all transactions-to-date will be posted on this blog site on the same day the transactions occur.</li></ul><div><br /></div><p></p><p></p><p></p><p></p><p></p><p></p><p></p><p>During the past year
(last 12 months) 119 of 132 positions (90.2%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit. <b>The Covered Calls Advisor Portfolio weighted average annualized-return-on-investment (aroi) was +14.9</b><b>% during the past year and the average holding period for these 132 closed positions was 20.1 days. In comparison, the benchmark S&P 500 has returned +30.2% during the same prior one-year period. </b></p><p></p><p>This Covered Calls Advisor blog is available to anyone interested in learning about implementing a successful Covered Calls investing strategy. As always, I also encourage you to email me at partlow@cox.net any time you would like my feedback on your Covered Call position ideas or your questions on anything related to the Covered Calls investing strategy.</p><p> Best Wishes,</p><p>Jeff Partlow<br />Covered Calls Advisor<br />partlow@cox.net</p><p><br /></p>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-355192746986452342024-03-15T13:29:00.001-04:002024-03-15T13:29:31.318-04:00Established Covered Calls Position in KraneShares CSI China Internet ETFThis afternoon a 3-week Covered Calls position was established in KraneShares CSI China Internet ETF (ticker KWEB). Five hundred shares were purchased at $26.29 and five April 5th, 2024 Call options were sold at the $25.50 strike price at $1.37 per share--a buy/write net debit transaction of $24.92 per share which provides a $.58 per share time value profit potential. The Delta was 65.7 when this transaction occurred. <div><br /></div><div>Wall Street Analysts rate the top 10 positions in KWEB as having +21.5% upside potential from their current prices. From a valuation perspective, KWEB's trailing-twelve-months P/E ratio is only 18.4 which compares very favorably to the market-cap-weighted "magnificent 7" U.S. companies whose P/E is now in the mid 40s. <div div="" nbsp=""><p><b>As detailed below, a potential result is </b><b>+2.3% absolute return-on-investment (equivalent to +40.5% annualized
return-on-investment for the next 21 days) if the KWEB share price is </b><b><b>in-the-money (i.e. above the $25.50 strike price) and therefore assigned on its April 5th, 2024 options expiration date.</b></b></p><p> <br /><b>KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position</b> </p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCYsK_J0bL03oD7j6Ap0UgRHPh2UsnPHGVqA5tJ_65aQhnjyiWrTZbH5QO1PdFQC5UHwdwVIr7i_mG5Y06XgIG2p1W8xH6iJ-eayl_F6mr5NcYqZaf2hOcnKGXgynZM07-_wqsF79gMWj9Ewoc1SKAoMat_ch2HabIsZeYZA8GIu7yrx6Gs75u5RQpTbA/s900/KWEB%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="506" data-original-width="900" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCYsK_J0bL03oD7j6Ap0UgRHPh2UsnPHGVqA5tJ_65aQhnjyiWrTZbH5QO1PdFQC5UHwdwVIr7i_mG5Y06XgIG2p1W8xH6iJ-eayl_F6mr5NcYqZaf2hOcnKGXgynZM07-_wqsF79gMWj9Ewoc1SKAoMat_ch2HabIsZeYZA8GIu7yrx6Gs75u5RQpTbA/s200/KWEB%20logo.png" width="200" /></a></div>The Buy/Write transaction was as follows:<br />3/15/2024 Bought 500 shares of CSI China Internet ETF @ $26.29 per share. <br />3/15/2024 Sold 5 KWEB April 5th, 2024 $25.50 Call options @ $1.37 per share. The Implied Volatility of the Calls was 35.2 when this position was established. </div><div div="" nbsp=""><br /></div><div div="" nbsp="">A possible overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows: </div><div div="" nbsp="">KWEB Covered Calls Net Investment: $12,313.35</div><div div="" nbsp="">= ($26.29 - $1.37) * 500 shares + $3.35 commission<p>Net Profit:<br />
(a) Options Income: +$681.65<br />
= ($1.37 * 500 shares) - $3.35 commission <br />(b) Dividend Income: +$0.00<br />
(c) Capital Appreciation (If 500 CSI China Internet ETF shares assigned at $25.50 strike price at expiration): -$395.00 <br />
+($25.50 - $26.29) * 500 shares<br /><br />
Total Net Profit Potential (If 500 CSI China Internet ETF shares assigned at $25.50 strike price at expiration): +$286.65<br />
= (+$681.65 options income +$0.00 dividend income - $395.00 capital appreciation)</p><p>Potential Absolute Return-on-Investment: +2.3%<br />
= +$286.65/$12,313.35<br />Potential Annualized Return-on-Investment: +40.5%<br />
= (+$286.65/$12,313.35) * (365/21 days)</p></div></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-15107286957793607042024-03-14T12:54:00.005-04:002024-03-14T13:00:50.381-04:00Covered Calls Position Established in Aptiv PLCEarly this afternoon, my buy/write limit order for Aptiv PLC (ticker APTV) was executed. My net debit limit price of $72.64 was executed when two hundred shares were purchased at $77.04 and two April 19th, 2024 Call options were sold at $4.40 per share at the $75.00 strike price. The potential time value profit was $2.36 per share = [$75.00 strike price - ($77.04 stock purchase price - $4.40 Call options price)]. A slightly in-the-money Covered Calls position was established with a Delta of 63.8 which approximates a 63.8% probability this position will be in-the-money and therefore assigned on the April 19th, 2024 options expiration date. As desired, the next quarterly earnings report on May 2nd is after the Apr 19th options expiration date.<br /><p></p><p>Aptiv was part of Delphi Automotive until the spin-off of its power systems division in 2017 which became Aptiv PLC (based in Dublin, Ireland). Aptiv is one of the world's largest vehicle component manufacturers and its customers include all 25 of the leading automotive original equipment manufacturers (OEMs), but with no single company representing more than 10% of revenues. Their two divisions are Signal and Power Solutions (74%) and Advanced Safety and User Experience (26%). </p><p>As shown in the detailed chart below, Aptiv meets all 18 filters of my Quality+Value+Growth stock screener and of the 18 companies that met all 18 filters (when my metric weightings were applied), Aptiv was the second highest. Aptiv also met all the filters in both my Future 5-Year PEG Ratios screener and my Stock Rover Overall stock screener. Aptiv is also now top-rated by Morningstar (5 stars).</p><p></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgl-mExdxTfyK8HvHDlxStS8EPVEpHf33NPeaER2FMC7V5hLJz_MAqd3X_Eh5-ZOsqrKwbCZ3i14mGMMWLzUvSXsqkW5YF7O7nXRWKCsr1PbjVxdIHTVURfLGM1R5dfFzhxnfPbwVS68CEmfwxFjpUWeg1bwBoLPafUFr8YYBa126PsiZfrDPooH1svY4A/s470/APTV%20Q+V+G.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="392" data-original-width="470" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgl-mExdxTfyK8HvHDlxStS8EPVEpHf33NPeaER2FMC7V5hLJz_MAqd3X_Eh5-ZOsqrKwbCZ3i14mGMMWLzUvSXsqkW5YF7O7nXRWKCsr1PbjVxdIHTVURfLGM1R5dfFzhxnfPbwVS68CEmfwxFjpUWeg1bwBoLPafUFr8YYBa126PsiZfrDPooH1svY4A/s600/APTV%20Q+V+G.png" width="600" /></a></div><p><b>As detailed below, the potential return-on-investment results for this Aptiv PLC C</b><b>overed Calls position is +3.2</b><b>% absolute return (equivalent to +32.8% annualized
return-on-investment for the next 36 days) </b><b><b>if the stock is assigned on the April 19th, 2024 options expiration date.</b></b></p><div><p></p><p>
</p><p></p><p><br /><b><b><br /></b></b></p><p><b>Aptiv PLC<b> (APTV) </b></b><b>-- </b><b>New Covered Calls Position</b></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlSNPOprYJq4E3GMCYcAV9olapg5TkOhqQ8RSV2lMeV2LvpWpQHcw0_6DucJ-DhT_CG-DntoNiu-1Gs-Oz0i8AkSfnqIrsHo6G7dLxl7QG6hrX1ioTY1L85Tb8qrlk9jsaqrvOg2a0FHnP1Bj2NEcIWsxMGrpCibnn8WEgSe92mo6RgpzleIaw9Rkbp3Y/s474/APTV%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="106" data-original-width="474" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlSNPOprYJq4E3GMCYcAV9olapg5TkOhqQ8RSV2lMeV2LvpWpQHcw0_6DucJ-DhT_CG-DntoNiu-1Gs-Oz0i8AkSfnqIrsHo6G7dLxl7QG6hrX1ioTY1L85Tb8qrlk9jsaqrvOg2a0FHnP1Bj2NEcIWsxMGrpCibnn8WEgSe92mo6RgpzleIaw9Rkbp3Y/s200/APTV%20logo.png" width="200" /></a></div>The buy/write transaction was:<br />3/14/2024 Bought 200 Aptiv PLC shares @ $77.04<br />3/14/2024 Sold 2 APTV 4/19/2024 $75.00 Call options @ $4.40 per share<b>. </b>The Implied Volatility of these Calls was 31.0 when this position was estalished.<br /><br />A possible overall performance result (including commissions) for this Aptiv Covered Calls position is as follows: <br />Aptiv Covered Calls Net Investment: $14,529.34<br />
= ($77.04 - $4.40) * 200 shares + $1.34 commission<br />
<br />
Net Profit:<br />
(a) Options Income: +$878.66<br />
= ($4.40 * 200 shares) - $1.34 commission <br />
(b) Dividend Income: +$0.00 <br />
= ($0.00 dividends per share x 200 shares)<br />(c) Capital Appreciation (If APTV shares assigned at $75.00 strike price at expiration): -$408.00<br />
+($75.00 - $77.04) * 200 shares<p></p>
<div style="border: medium none;">Total Net Profit (If options exercised on the 4/19/2024 options expiration date): +$470.66</div>
<div style="border: medium none;">
= (+$878.66 options income +$0.00 dividend income -$408.00 capital appreciation)</div><div style="border: medium none;"><br /></div><div style="border: medium none;">
<div style="border: medium none;">Potential Absolute Return-on-Investment (If the Aptiv shares are assigned at the $75.00 strike price at the April 19th, 2024 options expiration date): +3.2%</div>
<div style="border: medium none;">
= +$470.66/$14,529.34</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If 200 Aptiv PLC shares assigned at $75.00 at the 4/19/2024 options expiration): +32.8%</div>
<div style="border: medium none;">
= (+$470.66/$14,529.34) * (365/36 days)</div>
</div>
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<p></p><p></p></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-39606850732664850602024-03-13T16:11:00.008-04:002024-03-13T16:22:08.141-04:00Covered Calls Position Established in Halozyme Therapeutics Inc.Today a Covered Calls position was established in Halozyme Therapeutics Inc. (ticker HALO) when four hundred shares were purchased at $41.54 and four April 19th, 2024 Call options were sold at $2.86 per share at the $40.00 strike price. So, the corresponding potential time value (aka extrinsic value) profit potential is $1.32 per share = [$2.86 Call options premium - ($41.54 stock purchase price - $40.00 strike price)]. An in-the-money Covered Calls position was established with the Delta of the Calls at 65.8 when this buy/write limit order transaction was executed, which approximates the probability of assignment on the April 19th, 2024 options expiration date. Halozyme does not pay a dividend and importantly, their next quarterly earnings report on May 7th, 2024 is after the April 19th, 2024 options expiration date.<div><br /></div><div>A comparison between whether a Covered Calls or a Cash-Secured Puts position would be preferable was made shortly before I entered this order. The decision was an easy one since the time value for the Covered Calls of $1.32 was substantially better than the $1.10 (midpoint of the $1.00/$1/20 bid/ask price) for the comparable Puts.<br /><div><br /></div><div>Halozyme Therapeutics is a small-cap biotechnology company that has a range of auto-injector devices for subcutaneous and intramuscular delivery to patients. They have license agreements in partnership with several drug companies with 7 currently approved products and 10 expected by 2025. When co-formulated with drugs, their products have the potential to reduce the treatment burden for patients (minutes for subcutaneous injections versus hours for IV infusions). Also, I am very impressed by the leadership qualities of their CEO Helen Torley.</div><div>If interested in additional information on Halozyme, their most recent corporate slides presented in conjunction with their Q4 2023 conference call on 2/20/2024 are <a href="https://s28.q4cdn.com/284259014/files/doc_presentation/2024/HALO-Corporate-Deck-February-2024-FINAL.pdf">here</a>.</div><div> </div><div>As shown below, Halozyme also meets all twelve filters in my Stock Rover Overall stock screener. <div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpDn4Epv4DmmgpiXprwfFtRt8xd5E1VCs2dlntLnueDpJ6LCzCowEOVsf-oddSsaOxw_8_9ugrWFjXq31euahVmo4Mtf93dcxvj0HS0OsfsNXTWS8DNN38HTI9NmQ90iaYTF7P-gXLA3r1n1tm8OjtDi2ySI-WmeIxw9ieNwEB_8IKfsHcsR6ikfRTLSk/s477/HALO%20Stock%20Rover%20Overall.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="331" data-original-width="477" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpDn4Epv4DmmgpiXprwfFtRt8xd5E1VCs2dlntLnueDpJ6LCzCowEOVsf-oddSsaOxw_8_9ugrWFjXq31euahVmo4Mtf93dcxvj0HS0OsfsNXTWS8DNN38HTI9NmQ90iaYTF7P-gXLA3r1n1tm8OjtDi2ySI-WmeIxw9ieNwEB_8IKfsHcsR6ikfRTLSk/s600/HALO%20Stock%20Rover%20Overall.png" width="600" /></a></div></div><div><br /></div><br /><div><b>Halozyme Therapeutics Inc. (HALO) -- New Covered Calls Position</b></div><div><div><div>The net debit buy/write limit order was executed as follows:<div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhn8LYwtfNDDThTirD0gz6sWH2odT8RKQqCBuwdVFtwG2y6Vx8TaC0HUYIj0faxMlbuCfhKV_Oyfsonr38ZWbFeMKLdkM5z1qtgmi4hrwuJE3LuzmGXO71XH9IGwIorc4MAenCI8PAgGJ1PTSsby7gvq79iTP1HdHdf3ODQk2MhdsjGQQloA8AU4sOuXTs/s311/HALO%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="162" data-original-width="311" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhn8LYwtfNDDThTirD0gz6sWH2odT8RKQqCBuwdVFtwG2y6Vx8TaC0HUYIj0faxMlbuCfhKV_Oyfsonr38ZWbFeMKLdkM5z1qtgmi4hrwuJE3LuzmGXO71XH9IGwIorc4MAenCI8PAgGJ1PTSsby7gvq79iTP1HdHdf3ODQk2MhdsjGQQloA8AU4sOuXTs/s200/HALO%20logo.png" width="200" /></a></div>3/13/2024 Bought 400 shares of Halozyme Therapeutics stock @ $41.54 per share. <br />3/13/2024 Sold 4 HALO April 19th, 2024 $40.00 Call options @ $2.86 per share. Note: the Implied Volatility of the Calls was 35.2 when this position was established. <br />
<br />A possible overall performance results (including commissions) for this position if the position is in-the-money on the options expiration date is as follows: <br />
Halozyme Covered Calls Net Investment: $15,474.68<br />= ($41.54 - $2.86) * 400 shares + $2.68 commission</div><p>Net Profit Components: <br />
(a) Options Income: +$1,141.32<br />
= ($2.86 * 400 shares) - $2.68 commission <br />
(b) Dividend Income: +$0.00<br />(c) Capital Appreciation (If Halozyme stock is above the $40.00 strike price at the April 19th options expiration date): -$616.00<br />= ($40.00 strike price - $41.54 stock purchase price) * 400 shares</p><p>Potential Total Net Profit (If in-the-money and therefore assigned at expiration): +$525.32<br />= (+$1,141.32 options income + $0.00 dividend income - $616.00 capital appreciation)</p><p><b>Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 4/19/2024 options expiration date): +3.4% </b>= +$525.32/$15,474.68</p><p><b>Potential Equivalent Annualized-Return-on-Investment: +33.5%</b><br />= (+$525.32/$15,474.68) * (365/37 days)</p><p><br /></p></div><div>
<p></p><p></p></div></div></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-17225954838901412192024-03-11T13:29:00.002-04:002024-03-11T13:29:51.388-04:00Closed Out Covered Calls in Newmont CorporationI established a Covered Calls position in Newmont Corporation (ticker NEM) on February 28, 2024 by a simultaneous buy/write purchase of 600 Newmont shares at $29.65 and sold-to-open 6 March 15th, 2024 $28.50 Call options at $1.42 per share. 400 share were called away by early assignment on the last business day prior to the 3/4/2024 ex-dividend date. The ex-div amount was $.25 per share and since the stock price had increased from its $29.65 purchase price to $31.94 at market close on the day prior to the ex-dividend date and the time value remaining in the Calls was $0.00, a Call owner decided to exercise their option to buy 400 shares at the $28.50 strike price and also capture the March 4th ex-dividend. I was pleased with this early assignment since an annualized-return-on-investment for the 400 Newmont shares sold was +68.1%. A description of this close out transaction was posted on my blog <a href="https://coveredcallsadvisor.blogspot.com/2024/03/early-assignment-situations-in-yum.html">here</a>.<div><br /></div><div>Two hundred shares of my original Newmont Covered Calls position were not exercised early, so this Covered Calls position continued in my Covered Calls Advisor Portfolio -- that is until this afternoon. This Covered Calls position had an expiration date of this Friday, March 15th. But the stock price has continued to increase to $34.96 today, so I decided to unwind (i.e. close out) the remaining 200 shares of this Newmont Covered Calls position at a net credit of $28.45, which had only $.05 of time value remaining in this position and with 4 days remaining until the options expiration date. The annualized return-on-investment achieved for the 200 shares of this Newmont Corp. Covered Calls position was +49.2% for the 12 days duration of this investment. I decided to close out this position today since the +49.2% result was better than the +41.5% maximum potential annualized-return-on-investment if this Covered Calls position was instead assigned this Friday on its March 15th options expiration date. </div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-57610584889067481352024-03-11T10:25:00.000-04:002024-03-11T10:25:35.787-04:00Established Covered Calls in Novo-Nordisk GlobalToday, a Covered Calls position was established in Novo-Nordisk Global (ticker NVO) with the purchase of 200 shares at $132.34 per share and two March 28th, 2024 quarterly Call options were sold for $6.32 per share at the $128.00 strike price. So, the corresponding potential time value (aka extrinsic value) profit is $1.98 per share = [$6.32 Call options premium - ($132.34 stock purchase price - $128.00 strike price)]. A moderately in-the-money Covered Calls positions was established with the Delta of the Calls at 70.6 when this buy/write transaction was executed, which approximates the probability of assignment on the March 28th, 2024 options expiration date. Novo-Nordisk's has an upcoming semi-annual ex-dividend at $.9299 per share (2.8% dividend yield at the current stock price) on March 22nd is prior to the March 28th options expiration date, so this dividend is included in the potential return-on-investment results shown below. As shown on the chart at the bottom of this post, eight of the nine criteria in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet were met for this position. As I also prefer, the next quarterly earnings report on May 2nd, 2024 is after the options expiration date.
<p>Novo-Nordisk is a pharmaceutical company based in Denmark. Its key divisions include Diabetes Care,
Obesity Care, and Rare Diseases. Key products include Ozempic, Victoza, and insulin for diabetes; Wegovy
and Saxenda for obesity; and treatments for rare blood and endocrine disorders.</p><p><b>Two potential return-on-investment results are: (a) +1.6% absolute return-on-investment (equivalent to +52.0% annualized
return-on-investment for the next 11 days) if the stock is assigned early (on the last trading day prior to the March 22nd, 2022 ex-dividend date); OR (b) +2.3%
absolute return-on-investment (equivalent to +49.5% annualized return-on-investment over the next 17 days) if the stock is assigned on the March 28th, 2024 options expiration date. </b></p><p></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipGlmfUEgAb26iTU0iwGMkpk3DBxg2V5qSPGDNfuvfXhp6hXj3X9EBjY4ASLp6WkUm4Lr6v1vmmGPfg43RaqAqNLw_sCoXS7TGRIJ3c_Dioxba9y1yRDw9HThOCcIwJA0T0vS2v2kPQZS0387KyhqWWV_ToaT5pn0DIZyZ14AAaAT5Np7YgVUoTXRiyMI/s262/NVO%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="192" data-original-width="262" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEipGlmfUEgAb26iTU0iwGMkpk3DBxg2V5qSPGDNfuvfXhp6hXj3X9EBjY4ASLp6WkUm4Lr6v1vmmGPfg43RaqAqNLw_sCoXS7TGRIJ3c_Dioxba9y1yRDw9HThOCcIwJA0T0vS2v2kPQZS0387KyhqWWV_ToaT5pn0DIZyZ14AAaAT5Np7YgVUoTXRiyMI/s200/NVO%20logo.png" width="200" /></a></div><p style="font-weight: bold;"><b><b><b><b><b><b><b><b><b><b><br /></b></b></b></b></b></b></b></b></b></b></p><b>Novo-Nordisk Global (NVO) -- New Covered Calls Position</b><br />
The simultaneous buy/write transaction was as follows:<br />3/11/2024 Bought 200 shares of Novo-Nordisk stock @ $132.34 per share. <br />3/11/2024 Sold 2 NVO March 28th, 2024 $128.00 Call options @ $6.32 per share.<br />3/22/2024 Upcoming ex-dividend of $.9299 per share <br />
<br />
Two possible overall performance results (including commissions) would be as follows: <br />
Covered Calls Net Investment: $25,205.34<br />= ($132.34 - $6.32) * 200 shares + $1.34 commission<p></p><p></p>
Net Profit Components: <br />
(a) Options Income: +$1,262.66<br />
= ($6.32 * 200 shares) - $1.34 commission<br />
(b) Dividend Income (If Novo-Nordisk shares assigned on 3/21/2024, the business day prior to the 3/22/2024 ex-dividend date): = +$0.00; or<br />
(b) Dividend Income (If NVO shares assigned at the 3/28/2024 options expiration date): +$185.98<br />
= $.9299 per share x 200 shares <br />
(c) Capital Appreciation (If Novo-Nordisk shares assigned early on 3/22/2024): -$868.00 <br />
= ($128.00 strike price -$132.34 stock purchase price) * 200 shares; or<br />
(c) Capital Appreciation (If NVO shares assigned with stock above the $128.00 strike price at the March 28th options expiration): -$868.00 <br />
= ($128.00 -$132.34) * 200 shares<br />
<br />
1. Potential Net Profit (If Novo-Nordisk shares assigned on 3/21/2024, the day prior to the March 22nd ex-dividend date): +$394.66<br />
= (+$1,262.66 options income +$0.00 dividend income - $868.00 capital appreciation)<br />
2. Potential Net Profit (If NVO price is above $128.00 strike price at the March 28th options expiration): +$580.64<br />
= (+$1,262.66 options income +$185.98 dividend income - $868.00 capital appreciation)<br />
<br />
1. Absolute Return-on-Investment (If Novo-Nordisk shares assigned early on 3/21/2024, the day prior to the March 22nd, 2024 ex-dividend date): +1.6%<br />
= +$394.66/$25,205.34<br />
Equivalent Annualized Return-on-Investment (If assigned early on day prior to ex-div date): +52.0% <br />
= (+$394.66/$25,205.34) * (365/11 days)<p></p><p>
2. Absolute Return-on-Investment (If Novo-Nordisk price is above $128.00 strike price at the March 28th options expiration date): +2.3%<br />
= +$580.64/$25,205.34<br />
Equivalent Annualized Return-on-Investment (If assigned on 3/28/2024 options expiration date): +49.5% <br />
= (+$580.64/$25,205.34) * (365/17 days)</p><p>
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At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown below, eight of the nine criteria are achieved for this Novo-Nordisk Global Covered Calls position.</p><p></p><b><b><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2Vo3kQmMHYU1EDTSaG4n55MsT7i3Ut1dZlhhJ2iVQeiVkswFMEhoCFq-ReRrdsVYF1KNH2eTg3RkARbLQHQ1n13Eg5rCm4yBo2_Aa3OVSS2D1bX597bJh5NilSlJuUiPfChvsGtspysxOicUxOJ6oNnHhHdag6y5f0sG5b6mlhFpF9img1vjufm0WI6k/s840/NVO%20div%20capt.png" style="display: block; padding: 1em 0; text-align: center; "><img alt="" border="0" width="600" data-original-height="713" data-original-width="840" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2Vo3kQmMHYU1EDTSaG4n55MsT7i3Ut1dZlhhJ2iVQeiVkswFMEhoCFq-ReRrdsVYF1KNH2eTg3RkARbLQHQ1n13Eg5rCm4yBo2_Aa3OVSS2D1bX597bJh5NilSlJuUiPfChvsGtspysxOicUxOJ6oNnHhHdag6y5f0sG5b6mlhFpF9img1vjufm0WI6k/s600/NVO%20div%20capt.png"/></a></div>
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<br /></b></b><p></p><p></p>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-13053510119605053322024-03-08T08:51:00.000-05:002024-03-08T08:51:14.428-05:00Early Assignment of Covered Call Position in FedEx CorporationThis morning I was notified that the FedEx Corporation (ticker FDX) March 15th, 2024 $237.50 Call option was exercised yesterday. Because the FedEx stock price increased from $243.00 when this position was established to $249.93 at yesterday's market close, the original $2.60 time value in the Calls when the position was established had declined on yesterday's market close to $0.00, so the owner of this FedEx Call exercised their option to buy the 100 shares at the $237.50 strike price in order for them to receive today's $1.26 per share ex-dividend. <b><b><b><br /></b></b></b><p>The post when this FedEx Covered Call position was originally established is <a href="https://coveredcallsadvisor.blogspot.com/2024/02/covered-call-established-in-fedex.html">here</a>.<b> As detailed below, t<b>he return-on-investment result </b><b>was </b></b><b><b><b><b><b><b>+1.1</b><b><b>%</b><b><b> absolute
return in 14 days (equivalent to a +28.8% annualized
return-on-investment)</b></b></b></b>.</b></b></b></b></p>
<br /><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEih2Kc86q2hiXKDMF3YxyT5FduSKTiPuBqYLWmfBZhFdpr_468TGLFO_Fg4TsLNhXe7iACjTIRrEAFjtNloFb0A0m1z2mqTvXahQWH783uYJbb6OlnSsnTdsEJI1N-kBfE6y2puKfDKZlecX3_hT1kXhnZbfWZnM5hkj4Kbn_1lPvsS8TeWBN655cnF=s281" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><br /><img alt="" border="0" data-original-height="179" data-original-width="281" src="https://blogger.googleusercontent.com/img/a/AVvXsEih2Kc86q2hiXKDMF3YxyT5FduSKTiPuBqYLWmfBZhFdpr_468TGLFO_Fg4TsLNhXe7iACjTIRrEAFjtNloFb0A0m1z2mqTvXahQWH783uYJbb6OlnSsnTdsEJI1N-kBfE6y2puKfDKZlecX3_hT1kXhnZbfWZnM5hkj4Kbn_1lPvsS8TeWBN655cnF=s200" width="200" /></a></div>
<b>FedEx Corporation </b><b style="font-weight: bold;">(FDX) -- </b><b style="font-weight: bold;">Covered Call Position Closed Out by Early Assignment</b><br />The buy/write transaction was:<br />2/23/2024 Bought 100 FedEx shares @ $243.00.<br />2/23/2024 Sold 1 FedEx 3/15/2024 $237.50 Call option @ $8.10 per share.<br />3/8/2024 FedEx Call option owner exercised their one Call option, so the Covered Call position was closed out early. The one FDX Call option expired worthless and the 100 FedEx Corporation shares were sold at the $237.50 strike price.<br />
<br />
The overall performance results (including commissions) for this FedEx Corporation Covered Call position are as follows: <br />Covered Call Net Investment: $23,490.67<br />= ($243.00 - $8.10) * 100 shares + $.67 commission<br /><br />Net Profit Components:<br />(a) Option Income: +$809.33<br />= ($8.10 * 100 shares) - $.67 commission<br />(b) Dividend Income (Call option exercised early on the business day prior to the ex-div date): +$0.00<br />(c) Capital Appreciation (FedEx shares assigned early): -$550.00<br />+($237.50 strike price -$243.00 stock purchase cost) * 100 shares<p></p><div style="border: medium none;">Total Net Profit: +$259.33</div><div style="border: medium none;">= (+$809.33 option income +$0.00 dividend income -$550.00 capital appreciation)</div><div style="border: medium none;"><br /><div style="border: medium none;">Absolute Return-on-Investment: +1.1%</div><div style="border: medium none;">= +$259.33/$23,490.67</div><div style="border: medium none;">Annualized Return-on-Investment: +28.8%</div><div style="border: medium none;">= (+$259.33/$23,490.67) * (365/14 days)</div><div style="border: medium none;"><br /></div></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-37091380764162451702024-03-07T15:29:00.007-05:002024-03-07T15:46:12.664-05:00Established Covered Calls in Merck & Co. Inc.Today, a Covered Calls position was established in Merck & Co. Inc. (ticker MRK) with the purchase of 200 shares at $123.76 per share and two March 22nd, 2024 Call options were sold for $3.52 per share at the $121.00 strike price. A moderately in-the-money Covered Calls positions was established with the Delta of the Calls at 75.2 when this buy/write transaction was executed, which approximates the probability of assignment on the March 22nd, 2024 options expiration date. Merck goes ex-dividend at $.77 per share (2.5% dividend yield at the current stock price) on March 14th which is prior to the March 22nd options expiration date, so this dividend is included in the potential return-on-investment results shown below. All nine criteria in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet were met for this position and there is no quarterly earnings report prior to the options expiration date.
<p><b>Two potential return-on-investment results are: (a) +0.6% absolute return-on-investment (equivalent to +33.0% annualized
return-on-investment for the next 7 days) if the stock is assigned early (on the last trading day prior to the March 14th, 2022 ex-dividend date); OR (b) +1.3%
absolute return (equivalent to +31.0% annualized return over the next 15 days) if the stock is assigned on the March 22nd options expiration date. </b><br />
</p><p></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKQcdnVNV8lfp5pysohbx1-9yRGKPBwzPd0MTsQurkWghe_XOe_oU7ZAdZjI8iKsqspwm52N5iPBhtx3eiRu-vn5Ku1Ys-B6Qg5T96lIaBYRnzyCUAioWtsOt6U9sERsngZl61Zgxwoe4tcI0vfkP2_S6Drotjzg_Y4Dr2hD-BCQJqDYrjgJKCy8olpN8/s411/MRK%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="122" data-original-width="411" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKQcdnVNV8lfp5pysohbx1-9yRGKPBwzPd0MTsQurkWghe_XOe_oU7ZAdZjI8iKsqspwm52N5iPBhtx3eiRu-vn5Ku1Ys-B6Qg5T96lIaBYRnzyCUAioWtsOt6U9sERsngZl61Zgxwoe4tcI0vfkP2_S6Drotjzg_Y4Dr2hD-BCQJqDYrjgJKCy8olpN8/s200/MRK%20logo.png" width="200" /></a></div><b><b><b><b><b><b><b><b><b><b><p><b><b><b><b><b><b><b><b><b><b><br /></b></b></b></b></b></b></b></b></b></b></p>Merck & Co. Inc. </b></b>(MRK) -- New Covered Calls Position</b></b></b></b><br /></b></b></b></b>
The simultaneous buy/write transaction was as follows:<br />3/7/2024 Bought 200 shares of Merck & Co. stock @ $123.76 per share. <br />3/7/2024 Sold 2 MRK March 22nd, 2024 $121.00 Call options @ $3.52 per share.<br />3/14/2024 Upcoming ex-dividend of $.77 per share <br />
<br />
Two possible overall performance results (including commissions) would be as follows: <br />
Covered Calls Net Investment: $24,049.34<br />= ($123.76 - $3.52) * 200 shares + $1.34 commission<p></p><p></p>
Net Profit Components: <br />
(a) Options Income: +$704.00 <br />
= ($3.52 * 200 shares)<br />
(b) Dividend Income (If Merck shares assigned on 3/13/2024, the business day prior to the 3/14/2024 ex-dividend date): = +$0.00; or<br />
(b) Dividend Income (If Merck shares assigned at 3/22/2024 options expiration): +$154.00<br />
= $.77 per share x 200 shares <br />
(c) Capital Appreciation (If MRK shares assigned early on 3/13/2024): -$552.00 <br />
= ($121.00 strike price -$123.76 stock purchase price) * 200 shares; or<br />
(c) Capital Appreciation (If MRK shares assigned with stock above the $121.00 strike price at the March 22nd options expiration): -$552.00 <br />
= ($121.00 -$123.76) * 200 shares<br />
<br />
1. Potential Net Profit (If Merck shares assigned on 3/13/2024, the day prior to the March 14th ex-dividend date): +$152.00<br />
= (+$704.00 options income +$0.00 dividend income - $552.00 capital appreciation)<br />
2. Potential Net Profit (If MRK price is above $121.00 strike price at the March 22nd options expiration): +$306.00<br />
= (+$704.00 options income +$154.00 dividend income - $552.00 capital appreciation)<br />
<br />
1. Absolute Return-on-Investment (If Merck shares assigned early on 3/13/2024, the day prior to the March 14th, 2024 ex-dividend date): +0.6%<br />
= +$152.00/$24,049.34<br />
Equivalent Annualized Return-on-Investment (If assigned early on day prior to ex-div date): +33.0% <br />
= (+$152.00/$24,049.34) * (365/7 days)<p></p><p>
2. Absolute Return-on-Investment (If Merck price is above $121.00 strike price at the March 22nd options expiration): +1.3%<br />
= +$306.00/$24,049.34<br />
Equivalent Annualized Return-on-Investment (If assigned on 3/22/2024 options expiration date): +31.0% <br />
= (+$306.00/$24,049.34) * (365/15 days)</p><p>
<br />
At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown below, all nine criteria are achieved for this Merck & Co. Inc. Covered Calls position.</p><p></p><b><b><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOK5y8dwYmMweq7Bv9XRNUA8WoCfj81oC8Gpy5RXe8yX_sVkvEbgiVgDSLHuXk_8emSv31U_i5N0aToIq2uTV6jm6KSQWm2Tif0_3LV6ltR8AfCZG4YO3X_JPDkONAKyBdHQ39IFl8Diivv07u7Pkfujwb-j3a4ch7TMoSvNrJqpnSDbjrODwrvYL4QG0/s840/MRK%20div%20capt.png" style="display: block; padding: 1em 0; text-align: center; "><img alt="" border="0" width="600" data-original-height="713" data-original-width="840" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOK5y8dwYmMweq7Bv9XRNUA8WoCfj81oC8Gpy5RXe8yX_sVkvEbgiVgDSLHuXk_8emSv31U_i5N0aToIq2uTV6jm6KSQWm2Tif0_3LV6ltR8AfCZG4YO3X_JPDkONAKyBdHQ39IFl8Diivv07u7Pkfujwb-j3a4ch7TMoSvNrJqpnSDbjrODwrvYL4QG0/s600/MRK%20div%20capt.png"/></a></div>
<br />
<br /></b></b><p></p><p></p>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-42895734313407054772024-03-05T15:33:00.000-05:002024-03-05T15:33:51.990-05:00Covered Call Position Established in Becton Dickinson & CompanyA short-term Covered Call net debit limit order was executed and 100 shares of Becton Dickinson & Company (ticker symbol BDX) stock were purchased at $233.29 and 1 March 15th, 2024 $230.00 Call option was sold at $4.73 per share -- a net debit of $228.56 per share. So, the corresponding potential time value (aka extrinsic value) profit was $1.44 per share = [$4.723 Call options premium - ($233.29 stock purchase price - $230.00 strike price)]. The Delta was 67.7 which closely approximates a probability of assignment on the options expiration date of 67.7%. Given the Covered Calls Advisor's current Neutral Overall Market Meter outlook, a slightly in-the-money Covered Calls position was established. <div><br /></div><div>There is an upcoming ex-dividend on Thursday of $.95 per share (a 1.6% annual dividend yield). This dividend is included in the potential return-on-investment results detailed below. Also, as preferred, there is no earnings report prior to the options expiration date<span face="Arial, Helvetica, sans-serif" style="background-color: white; font-size: 16px; letter-spacing: 0.15px;">.</span></div><div><span style="letter-spacing: 0.15px;"><br /></span><div><b><b>As detailed below, a potential outcome for this</b> Becton Dickinson & Company<b> </b><b>investment is +1.0% absolute return-on-investment for the next 10 days (equivalent to +38.1</b></b><b><b>% annualized-return-on-investment) </b>if the stock closes above the $230.00 strike price on the March 15th, 2024 options expiration date<b>.</b></b></div><div><b><br /></b><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicIB9iFMG0gOddkjq8Ey2wfu5_4KRyyR8mgJZvRHqjLw0xz-FP2j0g1vMKofSCH2Ffk8__gEi0TiXZXiyXiniW2Ik_tFi9ZyPIknqj5w5tbOG02XRBmmMHNxZaXxlnaTsf0wU5pDAFJ7ofP727OvE7dRX3XZM2cIzcQ2DcGC8RyI_NNT9ghwfqx7MLStY/s273/BDX%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="184" data-original-width="273" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicIB9iFMG0gOddkjq8Ey2wfu5_4KRyyR8mgJZvRHqjLw0xz-FP2j0g1vMKofSCH2Ffk8__gEi0TiXZXiyXiniW2Ik_tFi9ZyPIknqj5w5tbOG02XRBmmMHNxZaXxlnaTsf0wU5pDAFJ7ofP727OvE7dRX3XZM2cIzcQ2DcGC8RyI_NNT9ghwfqx7MLStY/s200/BDX%20logo.png" width="200" /></a></div><b>Becton Dickinson & Company (BDX) -- New </b><b>Covered </b><b>Call Position</b></div><div>The net debit buy/write limit order was executed as follows:</div><div><div>3/5/2024 Bought 100 shares of Becton Dickinson stock @ $233.29 per share. <br />3/5/2024 Sold 1 BDX March 15th, 2024 $230.00 Call option @ $4.73 per share.<br />3/7/2024 Ex-dividend of $.95 per share.</div><div><br />
A possible overall performance result (including commissions) if this position is assigned on its 3/15/2024 option expiration date is as follows: <br />
Covered Calls Net Investment: $22,856.67<br />= ($233.29 - $4.73) * 100 shares + $.67 commission</div><p>Net Profit Components: <br />
(a) Call Option Income: +$472.33<br />
= ($4.73 * 100 shares) - $.67 commission <br />
(b) Dividend Income: +$95.00<br />= $.95 x 100 shares<br />
(c) Capital Appreciation (If Becton Dickinson stock is above the $230.00 strike price at the 3/15/2024 option expiration date): -$329.00 <br />
= ($230.00 - $233.29) * 100 shares <br /><br />
Potential Total Net Profit (If assigned at expiration): +$238.33<br />
= (+$472.33 option income + $95.00 dividend income - $329.00 capital appreciation)<br /><br />
Potential Absolute Return-on-Investment: +1.0%<br />
= +$238.33/$22,856.67<br />Potential Equivalent Annualized-Return-on-Investment: +38.1% <br />
= (+$238.33/$22,856.67) * (365/10 days)</p><p></p></div></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-58095720842857087632024-03-05T12:02:00.001-05:002024-03-05T12:02:16.526-05:00Covered Call Position Established in Microsoft CorporationToday a Covered Call position was establised in Microsoft Corporation (ticker MSFT). My buy/write net debit limit order was executed and 100 Microsoft shares were purchased at $403.23 and 1 March 22nd, 2024 $395.00 Call option was sold at $13.31 per share -- a net debit of $389.92 per share. So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $5.08 per share [$13.31 Call option premium - ($403.23 stock purchase price - $395.00 strike price)]. The Delta was 65.9 which closely approximates the probability of assignment on the options expiration date of 65.9%. This position avoids the next quarterly earnings report on April 30th which is more than a month after the March 22nd options expiration date. <div><br /></div><div><div><b><b>As detailed below, a potential outcome for this Microsoft Corporation investment is +1.3% absolute return-on-investment for the next 17 days (equivalent to +27.9</b></b><b><b>% annualized-return-on-investment) </b>if the stock closes above the $395.00 strike price on the March 22nd, 2024 options expiration date<b>.</b></b></div><div><b><b><br /></b></b></div><div><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjcIhqewXgab4ELDajTwYqeifrOwjDJ8EvU8EUyocBNBI6LJz9jaqnLjUBERnXcUhGNIObkBmNkAN6YSkwxuSkICDGfs31p2bIc2cnSyjwlT1ql5HEyiotVJU8GCutn4knMiLXZz3QZtMx0xYtG8pgJJiu55PHJ-nU9yDlF06ZEfL170He3NymetkkAT5o/s275/MSFT%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="183" data-original-width="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjcIhqewXgab4ELDajTwYqeifrOwjDJ8EvU8EUyocBNBI6LJz9jaqnLjUBERnXcUhGNIObkBmNkAN6YSkwxuSkICDGfs31p2bIc2cnSyjwlT1ql5HEyiotVJU8GCutn4knMiLXZz3QZtMx0xYtG8pgJJiu55PHJ-nU9yDlF06ZEfL170He3NymetkkAT5o/s200/MSFT%20logo.png" width="200" /></a></div><b><b><b><b>Microsoft Corporation (MSFT) -- New Covered Call Position</b></b></b></b><div>The net debit buy/write limit order was executed as follows:<br />3/5/2024 Bought 100 shares of Microsoft stock @ $403.23 per share. <br />3/5/2024 Sold 1 MSFT March 22nd, 2024 $395.00 Call option @ $13.31 per share.<br /><br />
A possible overall performance result (including commissions) if this position is assigned on its 3/22/2024 option expiration date is as follows: <br />Microsoft Covered Call Net Investment: $38,992.67<br />= ($403.23 - $13.31) * 100 shares + $.67 commission</div><p>Net Profit Components: <br />
(a) Call Option Income: +$1,330.33<br />
= ($13.31 * 100 shares) - $.67 commission <br />
(b) Dividend Income: +$0.00<br />
(c) Capital Appreciation (If Microsoft stock is above the $395.00 strike price at the March 22nd option expiration date): -$823.00 <br />
= ($395.00 - $403.23) * 100 shares <br /><br />
Potential Total Net Profit (If assigned at expiration): +$507.33<br />
= (+$1,330.33 option income + $0.00 dividend income - $823.00 capital appreciation)<br /><br />
Potential Absolute Return-on-Investment: +1.3%<br />
= +$507.33/$38,992.67<br />Potential Equivalent Annualized-Return-on-Investment: +27.9% <br />
= (+$507.33/$38,992.67) * (365/17 days)</p><p></p></div></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-91764651648871131852024-03-04T15:53:00.005-05:002024-03-04T15:53:56.776-05:00Continuation of Covered Calls Position in Schlumberger LtdThe Covered Calls Advisor Portfolio has a Covered Calls position in Schlumberger Ltd. (now SLB) which expired out-of-the-money at last Friday's options expiration.
Today this position was continued by rolling out to the March 15th, 2024 weekly options expiration at the $50.00 strike price by selling-to-open three Calls at $.91 per share when the
price of SLB stock was $49.56. <br /><p><b>As detailed below, a potential outcome for this SLB investment if the stock is in-the-money and therefore assigned on the options expiration date is +2.8% absolute return-on-investment over 46 days (equivalent to +21.8</b><b><b>% annualized-return-on-investment) </b>if the stock closes above the $50.00 strike price on the March 15th, 2024 options expiration date<b>. </b></b>The transactions history of this SLB Covered Calls position so far along with a potential return-on-investment result if the stock is assigned on the March 15th, 2024 options expiration date is as follows:</p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRN7rZo8NnHrdebjrCP2URlJvOMTSUS_2KNeYHwxFrwqhn6HDFs8Phzch11epDHEK_PewASZhlakIy6kRzM3kqzzD2Dudtu8CSMKYbXOX1-E-mwLXQwgUtXLdgR4JRCn9ceuLad0uWUswTIeO4cLqauqTpOf36bYVNNKFGluafaoFzM-cpz2LdFVUYhU0/s275/SLB%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="183" data-original-width="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRN7rZo8NnHrdebjrCP2URlJvOMTSUS_2KNeYHwxFrwqhn6HDFs8Phzch11epDHEK_PewASZhlakIy6kRzM3kqzzD2Dudtu8CSMKYbXOX1-E-mwLXQwgUtXLdgR4JRCn9ceuLad0uWUswTIeO4cLqauqTpOf36bYVNNKFGluafaoFzM-cpz2LdFVUYhU0/s200/SLB%20logo.png" width="200" /></a></div><p></p><p></p><br />
<b><b>Schlumberger Ltd. </b></b><b>(SLB) -- Continuation of C</b><b>overed Calls Position</b><br />
The buy/write transaction was:<br />
01/29/2024 Bought 300 Schlumberger shares @ $52.43<br />
01/29/2024 Sold 3 Schlumberger 2/16/2024 $51.00 Call options @ $2.09<br />
Note: the Time Value (aka Extrinsic Value) in the Call options was $.66 per share = [$2.09 Call options premium - ($52.43 stock price - $51.00 strike price)]<br />
02/06/2024 Quarterly ex-dividend of $.275 per share<br />2/16/2024 SLB stock price was below the $51.00 strike price, so the Calls expired and the 300 SLB shares remained in the Covered Calls Advisor Portfolio. <div>2/20/2024 Continued this SLB Covered Calls position by selling three March 1st, 2024 $50.00 Call options @ $.56 per share when the stock was trading at $48.87. The Delta for these Calls was 33.8 when this transaction was executed.</div><div>3/1/2024 SLB stock price was below the $50.00 strike price, so the Calls expired and the 300 SLB shares remained in the Covered Calls Advisor Portfolio. <div>3/4/2024 Continued this SLB Covered Calls position by selling three March 15th, 2024 $50.00 Call options @ $.91 per share when the stock was trading at $49.56. </div><div><br /></div>A possible overall performance result (including commissions) for this SLB Covered Calls position if assigned on the March 15th expiration date is as follows: <br />
Covered Calls Net Investment: $15,104.01<br />
= ($52.43 - $2.09) * 300 shares + $2.01 commission <br />
<br />
Net Profit Components:<br />
(a) Options Income: +$1,061.97<br />
= ($2.09 + $.56 + $.91) * 300 shares - $6.03 commissions<br />(b) Dividend Income: +$82.50 <br />
= ($.275 dividend per share x 300 shares)<br />
<div style="border: medium none;">(c) Capital Appreciation (If SLB shares assigned at $50.00 strike price at the March 15th options expiration): -$729.00 <br />
+($50.00 strike price - $52.43 stock purchase price) * 300 shares </div>
<div style="border: medium none;">
<br /></div>
<div style="border: medium none;">Total Net Profit (If SLB shares assigned at $50.00 strike price at the March 15th, 2024 expiration): +$415.47</div>
<div style="border: medium none;">
= (+$1,061.97 options income +$82.50 dividend income -$729.00 capital appreciation)<br />
<br />
<div style="border: medium none;">Potential Absolute Return-on-Investment (If SLB shares assigned at $50.00 at the March 15th, 2024 options expiration): +2.8%</div>
<div style="border: medium none;">
= +$415.47/$15,104.01 </div>
<div style="border: medium none;">Potential Annualized Return-on-Investment: +21.8%</div>
<div style="border: medium none;">
= (+$415.47/$15,104.01) * (365/46 days)</div>
</div>
<br /></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-16518066073934947292024-03-04T10:30:00.003-05:002024-03-04T14:29:41.365-05:00Covered Calls Position Established in Aptiv PLCThis morning my buy/write limit order for Aptiv PLC (ticker APTV) was executed. My net debit limit price of $74.18 was executed when three hundred shares were purchased at $78.14 and three March 15th, 2024 Call options were sold at $3.96 per share at the $75.00 strike price. The potential time value profit was $.82 per share = [$75.00 strike price - ($78.14 stock purchase price - $3.96 Call options price)]. An in-the-money Covered Calls position was established with a Delta of 74.6 which approximates a 74.6% probability this position will be in-the-money and therefore assigned on the March 15th, 2024 options expiration date. As desired, there is no earnings report prior to the options expiration date.<br /><p></p><p>Aptiv was part of Delphi Automotive until the spin-off of its power systems division in 2017 which became Aptiv PLC (based in Dublin, Ireland). Aptiv is one of the world's largest vehicle component manufacturers and its customers include all 25 of the leading automotive original equipment manufacturers (OEMs), but with no single company representing more than 10% of revenues. Their two divisions are Signal and Power Solutions (74%) and Advanced Safety and User Experience (26%). </p><p>As shown in the detailed chart below, Aptiv meets all 18 filters of my Quality+Value+Growth stock screener. It is now also top-rated by both Morningstar (5 stars) and CFRA (Strong Buy).</p><p></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUnmgnfKVHQya7Ioq5i203vaXOsA3Da8haB3hwWkcBl3vmrxPpThYE2my-dtI7XecOobD2R37Rtmdx9Kfq0AksQ9TfWtyzgSv-11Jwwp9uOXk7nZWSRyn2ccMJWkAGbgxPxC4Bh-Z9EiM5CAYSDJEZxxdwReNO8pWL3-IWJVqRKDYQ71g6cPje0r4qv_U/s740/APTV%20Q+V+G.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="740" data-original-width="525" height="600" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUnmgnfKVHQya7Ioq5i203vaXOsA3Da8haB3hwWkcBl3vmrxPpThYE2my-dtI7XecOobD2R37Rtmdx9Kfq0AksQ9TfWtyzgSv-11Jwwp9uOXk7nZWSRyn2ccMJWkAGbgxPxC4Bh-Z9EiM5CAYSDJEZxxdwReNO8pWL3-IWJVqRKDYQ71g6cPje0r4qv_U/s600/APTV%20Q+V+G.png" /></a></div><p><b>As detailed below, the potential return-on-investment results for this Aptiv PLC C</b><b>overed Calls position is +1.1</b><b>% absolute return (equivalent to +36.4% annualized
return-on-investment for the next 11 days) </b><b><b>if the stock is assigned on the March 15th, 2024 options expiration date.</b></b></p><div><p></p><p>
</p><p></p><p><br /><b><b><br /></b></b></p><p><b>Aptiv PLC<b> (APTV) </b></b><b>-- </b><b>New Covered Calls Position</b></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlSNPOprYJq4E3GMCYcAV9olapg5TkOhqQ8RSV2lMeV2LvpWpQHcw0_6DucJ-DhT_CG-DntoNiu-1Gs-Oz0i8AkSfnqIrsHo6G7dLxl7QG6hrX1ioTY1L85Tb8qrlk9jsaqrvOg2a0FHnP1Bj2NEcIWsxMGrpCibnn8WEgSe92mo6RgpzleIaw9Rkbp3Y/s474/APTV%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="106" data-original-width="474" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlSNPOprYJq4E3GMCYcAV9olapg5TkOhqQ8RSV2lMeV2LvpWpQHcw0_6DucJ-DhT_CG-DntoNiu-1Gs-Oz0i8AkSfnqIrsHo6G7dLxl7QG6hrX1ioTY1L85Tb8qrlk9jsaqrvOg2a0FHnP1Bj2NEcIWsxMGrpCibnn8WEgSe92mo6RgpzleIaw9Rkbp3Y/s200/APTV%20logo.png" width="200" /></a></div>The buy/write transaction was:<br />3/4/2024 Bought 300 Aptiv PLC shares @ $78.14<br />3/4/2024 Sold 3 APTV 3/15/2024 $75.00 Call options @ $3.96 per share<b>.</b><br /><br />A possible overall performance result (including commissions) for this Aptiv Covered Calls position is as follows: <br />Aptiv Covered Calls Net Investment: $22,256.01<br />
= ($78.14 - $3.96) * 300 shares + $2.01 commission<br />
<br />
Net Profit:<br />
(a) Options Income: +$1,185.99<br />
= ($3.96 * 300 shares) - $2.01 commission <br />
(b) Dividend Income: +$0.00 <br />
= ($0.00 dividends per share x 300 shares)<br />(c) Capital Appreciation (If APTV shares assigned at $75.00 strike price at expiration): -$942.00<br />
+($75.00 - $78.14) * 300 shares<p></p>
<div style="border: medium none;">Total Net Profit (If options exercised on the 3/15/2024 options expiration date): +$243.99</div>
<div style="border: medium none;">
= (+$1,185.99 options income +$0.00 dividend income -$942.00 capital appreciation)</div><div style="border: medium none;"><br /></div><div style="border: medium none;">
<div style="border: medium none;">Potential Absolute Return-on-Investment (If the Aptiv shares are assigned at the $75.00 strike price at the March 15th, 2024 options expiration date): +1.1%</div>
<div style="border: medium none;">
= +$243.99/$22,256.01</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If 300 Aptiv PLC shares assigned at $75.00 at the 3/15/2024 options expiration): +36.4%</div>
<div style="border: medium none;">
= (+$243.99/$22,256.01) * (365/11 days)</div>
</div>
<br /><br />
<p></p><p></p></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-74008018636346889792024-03-02T11:06:00.000-05:002024-03-02T11:06:09.259-05:00March 1st, 2024 Options Expiration ResultsThe Covered Calls Advisor Portfolio had four Covered Calls positions with March 1st, 2024 options expirations. Three positions (Delta Air Lines Inc., KraneShares CSI China Internet ETF, and Target Corporation) closed in-the-money so their Calls expired and the shares were called away (i.e. sold) at their respective strike prices. The fourth position in Schlumberger Ltd. (SLB) closed out-of-the-money so the Calls expired and the 300 SLB shares remain in the Covered Calls Advisor Portfolio. A summary of the results for each of these four positions are as follows:<p>1. <b>Delta Air Lines Inc. </b><b>-- +1.2</b><b>% absolute return (equivalent to +29.4% annualized return-on-investment) for the 15 days of this investment. </b>This Covered Call position was assigned at the $39.50 strike price on its 3/1/2024 options expiration date since Delta's stock closed in-the-money at $42.16 per share. The original post detailing the history of this Covered Calls position is <a href="https://coveredcallsadvisor.blogspot.com/2024/02/established-covered-calls-in-delta-air.html">here</a>. </p><p>2. <b>KraneShares CSI China Internet ETF (KWEB)</b><b> -- </b><b>+6.4</b><b>% absolute return (equivalent to +41.1% annualized return-on-investment) for the 57 days of this investment. </b>This Covered Calls position was assigned at the $25.50 strike price on its March 1st options expiration date since it closed in-the-money yesterday at $25.99 per share. The most recent post detailing this Covered Calls position is <a href="https://coveredcallsadvisor.blogspot.com/2024/02/continuation-of-covered-calls-position_21.html">here</a>. </p><p>3. <b>Target Corporation </b><b>-- +1.6</b><b>% absolute return (equivalent to +40.6% annualized return-on-investment) for the 14 days of this investment. </b>This Covered Call position was assigned at the $142.00 strike price on its 3/1/2024 options expiration date since Target's stock closed in-the-money at $155.29 per share. The original post detailing the history of this Covered Calls position is <a href="https://coveredcallsadvisor.blogspot.com/2024/02/covered-calls-position-established-in.html">here</a>. </p><p>4. <b>Schlumberger Ltd. (SLB)</b><b> -- </b>This Covered Calls position closed yesterday at $49.35 which was below its $50.00 strike price, so the three 3/1/2024 SLB Call options expired and 300 SLB shares now remain in the Covered Calls Advisor Portfolio. Early next week a decision will be made to either close out the position by selling the shares or continuing with this Covered Calls position by selling three SLB Calls against the 300 shares currently owned. As always, I will post the transactions-to-date for this position when my next transaction is executed.</p><p>As always, I welcome your feedback at my email address shown below with your questions or topics related to this blog post specifically or anything related to the Covered Calls investing strategy.</p><p>Best Wishes,<br /></p><p>Jeff Partlow<br />The Covered Calls Advisor<br />partlow@cox.net</p>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-942137815980387892024-03-02T09:12:00.003-05:002024-03-02T09:19:23.411-05:00Potential Early Assignment Situations in Yum China Holdings Inc. and Newmont Corporation There are two Covered Calls positions (Yum China Holdings Inc. and Newmont Corporation) that go ex-dividend this Monday (March 4th, 2024). Both companies stock prices were substantially in-the-money at yesterday's (i.e. Friday's) market close and with little to no time value now remaining in the Call options, so there was the possibility of early exercise of these positions by the Call options owners. The original blog posts when these positions were established are detailed <a href="https://coveredcallsadvisor.blogspot.com/2024/02/established-covered-calls-position-in_26.html">here</a> for the Yum China position and <a href="https://coveredcallsadvisor.blogspot.com/2024/02/established-covered-calls-in-newmont.html">here</a> for the Newmont position.<div><br /></div><div>There are 500 shares and 5 March 15th, 2024 $40.00 Calls for my Yum China Holdings Inc. Covered Calls position and Monday's ex-dividend amount is $.16 per share. The stock price closed yesterday at $42.95 and the Calls closed at $3.00 (at the midpoint of their $2.90/$3.10 Bid/Ask pricing). Therefore, there was only $.05 time value per share ($40.00 + $3.00 - $42.95) remaining in the Call options and 11 calendar days still remaining until the options expiration date. I was somewhat surprised that a Call owner did not choose to exercise their option to buy the 500 YUMC shares at the $40.00 strike price and capture Monday's $.16 per share dividend. But with the stock price now well in-the-money, I am satisfied to be able to capture the dividend myself and also continue with this Yum China Covered Calls position. <div><br /></div><div>There are 600 shares and 6 March 15th, 2024 $28.50 Calls for my Newmont Corp. Covered Calls position and Monday's ex-dividend is $.25 per share. Early this morning I was notified by my broker's email that a partial exercise was made. Four of my six Newmont March 15th, 2024 Calls were exercised early by an owner of those Calls and the other two Calls were not exercised and they remain in my Covered Calls Advisor Portfolio. </div><div><br /></div><div>This Newmont stock price closed yesterday at $31.94 and the Calls closed at $3.425 (at the midpoint of their $3.35/$3.50 Bid/Ask pricing). Therefore, there was $0.00 time value per share remaining in these Call options and still 11 calendar days until the 3/15/2024 options expiration date -- so I was expecting all 600 shares to be assigned. I am pleased for the 400 shares early assignment since a +68.1% annualized-return-on-investment was achieved for the 5 days duration of this position. For the remaining 200 shares Covered Calls position, my maximum potential annualized-return-on-investment is also very attractive at +45.1% over the 16 days duration if the Newmont stock price remains in-the-money (i.e. above the $28.50 strike price) at market close on the March 15th, 2024 options expiration date.</div><div><p></p></div></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-15145459594073551652024-02-29T09:46:00.001-05:002024-02-29T09:46:21.180-05:00Early Assignment of Covered Calls Position in Genuine Parts CompanyThis morning I was notified that the two Genuine Parts Company (ticker GPC) March 15th, 2024 $140.00 Call options were exercised yesterday. Because the Genuine Parts stock price increased from $143.41 when this position was established to $150.75 at yesterday's market close, the original $1.24 time value in the Calls when the position was established had declined on yesterday's market close to $0.00, so the owner of these Genuine Parts Calls exercised their option to buy the 200 shares at the $140.00 strike price in order to receive today's $1.00 per share ex-dividend. I am pleased for this early assignment despite losing the opportunity to capture the dividend since the +40.5%
annualized-return-on-investment (aroi) achieved by early assignment is greater
than the +25.5% aroi that might have been achieved if this position was
instead assigned on its March 15th options expiration
date. <b><b><b><br /></b></b></b><p>The post when this Genuine Parts Covered Calls position was originally established is <a href="https://coveredcallsadvisor.blogspot.com/2024/02/established-covered-calls-position-in_21.html">here</a>.<b> As detailed below, t<b>he return-on-investment result for this </b>Genuine Parts Company<b> Covered Calls position was </b></b><b><b><b><b><b><b>+0.9</b><b><b>%</b><b><b> absolute
return in 8 days (equivalent to a +40.5% annualized
return-on-investment)</b></b></b></b>.</b></b></b></b></p>
<br /><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7fF7gdMRHnwCf60uWrT-bY4wfJdoeqZzU8dV-HFxszPorv0hiOfuvRcqgorjAC2ihoT-Hci5RxpKiS95myLwGMKnXeIPROX06oTVMkSA0onydNd2xclw9YKFpnNKPLz9-PhJ_g0hrheD_2Td1-cjrhkINlk6KVEYwGM2Mjg4Dg7uIgywTahjdsFDJZ6Y/s249/GPC%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="203" data-original-width="249" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7fF7gdMRHnwCf60uWrT-bY4wfJdoeqZzU8dV-HFxszPorv0hiOfuvRcqgorjAC2ihoT-Hci5RxpKiS95myLwGMKnXeIPROX06oTVMkSA0onydNd2xclw9YKFpnNKPLz9-PhJ_g0hrheD_2Td1-cjrhkINlk6KVEYwGM2Mjg4Dg7uIgywTahjdsFDJZ6Y/s200/GPC%20logo.png" width="200" /></a></div>
<b>Genuine Parts Company </b><b style="font-weight: bold;">(GPC) -- </b><b style="font-weight: bold;">Covered Calls Position Closed Out by Early Assignment</b><br />
The buy/write transaction was:<br />2/21/2024 Bought 200 Genuine Parts Company shares @ $143.41.<br />2/21/2024 Sold 2 GPC 3/15/2024 $140.00 Call options @ $4.65 per share.<br />2/29/2024 Genuine Parts Company Call options owner exercised their two Call options, so the Covered Calls position was closed out early. The two GPC Call options expired worthless and the 200 Genuine Parts shares were sold at the $140.00 strike price.<br />
<br />
The overall performance results (including commissions) for this Genuine Parts Company Covered Calls position are as follows: <br />
Covered Calls Net Investment: $27,753.34<br />
= ($143.41 - $4.65) * 200 shares + $1.34 commission <br />
<br />
Net Profit Components:<br />
(a) Options Income: +$928.66<br />
= ($4.65 * 200 shares) - $1.34 commission <br />
(b) Dividend Income (Genuine Parts Call options exercised early on February 28th, 2024, the last business day prior to the Feb. 29th ex-div date): +$0.00<br />
<div style="border: medium none;"><div class="separator" style="clear: both;">(c) Capital Appreciation (GPC's Call options assigned early on Feb. 28th): -$682.00</div>
+($140.00 - $143.41) * 200 shares</div>
<div style="border: medium none;">
<br /></div>
<div style="border: medium none;">Total Net Profit [GPC Call options exercised early (business day prior to the Feb. 29th ex-dividend date)]: +$246.66</div>
<div style="border: medium none;">
= (+$928.66 options income +$0.00 dividend income -$682.00 capital appreciation)</div><div style="border: medium none;">
<br />
<div style="border: medium none;">Absolute Return-on-Investment: +0.9%</div>
<div style="border: medium none;">
= +$246.66/$27,753.34</div>
<div style="border: medium none;">Annualized Return-on-Investment: +40.5%</div>
<div style="border: medium none;">
= (+$246.66/$27,753.34) * (365/8 days)</div></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-48250103593078999702024-02-28T15:19:00.001-05:002024-03-01T06:56:12.374-05:00Established Covered Calls Position in Match Group Inc.At 2:49pm this afternoon, my buy/write limit order for Match Group Inc. (ticker MTCH) was executed. My net debit limit price was $34.30 and six hundred shares were purchased at $36.49 and six March 15th, 2024 Call options were sold at $2.19 per share at the $35.00 strike price. The time value was $.70 per share = [$35.00 strike price - ($36.49 stock purchase price - $2.19 Call options price)]. An in-the-money Covered Calls position was established with a Delta of 69.2 which approximates a 69.2% probability this position will be in-the-money and therefore assigned on the March 15th, 2024 options expiration date. As desired, there is no earnings report prior to the options expiration date.<br /><p></p><p>Match Group is the leading online dating services company worldwide including several brands that include Tinder, Match, and Hinge. Match is profitable and their earnings per share and revenues are now achieving regular quarterly revenue and profit increases based on their worldwide presence and their growth opportunities (especially in Asia but also in Europe). Analysts' Price to Consensus Target is +20.7% above today's $36.49 stock purchase price. </p><p></p><p><b>As detailed below, the potential return-on-investment results for this Match Group Inc. C</b><b>overed Calls position is +2.0</b><b>% absolute return-on-investment (equivalent to +46.1% annualized
return-on-investment for the next 16 days) </b><b><b>if the stock is assigned on the March 15th, 2024 options expiration date.</b></b></p><div><p></p><p>
</p><p></p><p><b><b><br /></b></b></p><p><b><b>Match Group Inc. (MTCH) </b></b><b>-- </b><b>New Covered Calls Position</b></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhp8jrHe-vbtLwAKZ5Tsc-jLk0hywNcb_hKnjAAGsfOBuZ2GOx-7CI-aJYibRWRiN6VRZ-MXdVd8cgOFTz_M-6vP-m_8YFtH7vMJ6S5E7L6NxZEFp0_jVkeqMCBWLyGSuL_rfdeLA_BJkEu-Bf-P2AU9ZKw4Z4Fxh1YpWga2npzZGZeTOvjJOKlmt0P/s282/MTCH%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="179" data-original-width="282" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhp8jrHe-vbtLwAKZ5Tsc-jLk0hywNcb_hKnjAAGsfOBuZ2GOx-7CI-aJYibRWRiN6VRZ-MXdVd8cgOFTz_M-6vP-m_8YFtH7vMJ6S5E7L6NxZEFp0_jVkeqMCBWLyGSuL_rfdeLA_BJkEu-Bf-P2AU9ZKw4Z4Fxh1YpWga2npzZGZeTOvjJOKlmt0P/s200/MTCH%20logo.png" width="200" /></a></div>The buy/write transaction was:<br />2/28/2024 Bought 600 Match Group Inc. shares @ $36.49.<br />2/28/2024 Sold 6 MTCH 3/15/2024 $35.00 Call options @ $2.19 per share<b>.</b><br /><br />A possible overall performance result (including commissions) for this Match Group Covered Calls position is as follows: <br />Match Group Covered Calls Net Investment: $20,584.02<br />
= ($36.49 - $2.19) * 600 shares + $4.02 commission<br />
<br />
Net Profit:<br />
(a) Options Income: +$1,309.98<br />
= ($2.19 * 600 shares) - $4.02 commission <br />
(b) Dividend Income: +$0.00 <br />
= ($0.00 dividends per share x 600 shares)<br />(c) Capital Appreciation (If MTCH shares assigned at $35.00 strike price at expiration): -$894.00<br />
+($35.00 strike price - $36.49 stock purchase price) * 600 shares<p></p>
<div style="border: medium none;">Total Net Profit (If options exercised on the 3/15/2024 options expiration date): +$415.98</div>
<div style="border: medium none;">
= (+$1,309.98 options income +$0.00 dividend income -$894.00 capital appreciation)</div><div style="border: medium none;"><br /></div><div style="border: medium none;">
<div style="border: medium none;">Potential Absolute Return-on-Investment (If the Match Group Inc. shares are assigned at the $35.00 strike price at the March 15th, 2024 options expiration date): +2.0%</div>
<div style="border: medium none;">
= +$415.98/$20,584.02</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If 600 Match Group shares assigned at $35.00 at the 3/15/2024 options expiration date): +46.1%</div>
<div style="border: medium none;">
= (+$415.98/$20,584.02) * (365/16 days)</div>
</div>
<br /><br />
<p></p><p></p></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-13956180742623546122024-02-28T11:43:00.001-05:002024-02-28T11:43:24.987-05:00Established Covered Calls in Newmont CorporationA buy/write limit order was entered in Newmont Corporation (ticker NEM) to buy 600 shares and simultaneously sell 6 Call options at the March 15th, 2024 monthly options expiration date and at the $28.50 strike price. The net debit limit price for my order was $28.23 and this order was executed at 10:38am when 600 shares were purchased at $29.65 and 6 March 15th, 2024 Call options were sold for $1.42 per share. Therefore, a maximum potential time value profit of $.27 per share = [$1.42 options premium - ($29.65 stock price - $28.50 strike price)] is available for this position. <br /><br /><div>This position uses the Covered Calls Advisor's Dividend Capture Strategy since Newmont has an upcoming quarterly ex-dividend of $.25 per share on March 4th which is prior to the March 15th options expiration date. This is equivalent to an absolute annual dividend yield of 3.4% and an equivalent annualized dividend yield of 19.2% = [($.25/$29.65) x (365/16 days to expiration)]. This dividend is included in the detailed return-on-investment calculations below. Either an early assignment this Friday (the last trading day prior to next Monday's ex-dividend date) or on the March 15th options expiration date would be desirable to the Covered Calls Advisor given the potential annualized return on investments for either outcome. Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on April 25th, 2024 is after the 3/15/2024 options expiration date.<p>As shown on the table at the bottom of this post, eight of the nine criteria of the Dividend Capture Strategy are met with this position. Even if Newmont's stock price declines somewhat during the next 16 days until the options expiration date, if the stock closes above the $28.50 strike price, then a very satisfactory annualized-return-on-investment of +41.5% will be achieved. The Delta for these Call options was approximately 73.5 when this position was established which approximates the probability of 73.5% that the position will be in-the-money at market close on the options expiration date. </p><p>Newmont is the world's largest gold miner. Its stock price was greatly oversold on a very short-term basis with an RSI(2)=7.5 when this position was established. I was also encouraged by the +58.9% stock price upside of the 22 Analysts' current average target price of $47.10. <br />
<br />
<b>As detailed below, two potential return-on-investment results are:</b><b> </b><br />
</p><ul>
<li><b> +0.9% absolute return (equivalent to +68.</b><b>1% annualized
return-on-investment for the next 5 days) if the stock is assigned early (on the last business day
prior to the March 4th ex-dividend date); or </b></li>
</ul>
<ul>
<li><b>+1.8% absolute return (equivalent to +41.5% annualized return-on-investment over the next 16 days) if the stock is assigned on the March 15th, 2024 options expiration date. </b></li>
</ul>
<br />
<div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir-2MS9FtBE0bXvsB0xWulpjikbu0ieIK5tp-XOvWMgNkzu1wpKAP5s2ArGPqBZzWEZqZAUtEepT-wDz6YCsvQw9KPzEpoYGGQH1EYBXQNY4dhI3iAkZjTFe2UfwlLqXZmLUwWoNj5R2G8B49N36uQLaukLA43u5vH2M6W8AR8wLxVWic9-eQh2byjWNA/s301/NEM%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="167" data-original-width="301" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir-2MS9FtBE0bXvsB0xWulpjikbu0ieIK5tp-XOvWMgNkzu1wpKAP5s2ArGPqBZzWEZqZAUtEepT-wDz6YCsvQw9KPzEpoYGGQH1EYBXQNY4dhI3iAkZjTFe2UfwlLqXZmLUwWoNj5R2G8B49N36uQLaukLA43u5vH2M6W8AR8wLxVWic9-eQh2byjWNA/s200/NEM%20logo.png" width="200" /></a></div>
<b>Newmont Corporation </b><b style="font-weight: bold;">(NEM) -- </b><b style="font-weight: bold;">New Covered Calls Position</b><br />
The buy/write transaction was:<br />2/28/2024 Bought 600 Newmont shares @ $29.65.<br />2/28/2024 Sold 6 NEM 3/15/2024 $28.50 Call options @ $1.42 per share.<br />
Note: Implied Volatility (IV) of the Call options was at 28.7 when this position was transacted which, as I prefer, is above the current VIX of 13.5. <br />3/4/2024 Upcoming quarterly ex-dividend of $.25 per share.<br />
<br />
Two possible overall performance results (including commissions) for this Newmont Corporation Covered Calls position are as follows: <br />
Covered Calls Net Investment: $16,933.98<br />
= ($29.65 - $1.42) * 600 shares + $4.02 commission <br />
<br />
Net Profit Components:<br />
(a) Options Income: +$847.98<br />
= ($1.42 * 600 shares) - $4.02 commission <br />
(b) Dividend Income (If Newmont Call options exercised early on March 1st, 2024, the last business day prior to the March 4th ex-div date): +$0.00; or<br />
(b) Dividend Income (If Newmont stock assigned at the March 15th, 2024 options expiration): +$150.00<br />
= ($.25 dividend per share x 600 shares)<br />
<div style="border: medium none;"><div class="separator" style="clear: both;">(c) Capital Appreciation (If Newmont's Call options assigned early on March 1st): -$690.00</div>
+($28.50 strike price - $29.65) * 600 shares; or<br />
(c) Capital Appreciation (If shares assigned at $28.50 strike price at the 3/15/2024 options expiration): -$690.00 <br />
+($28.50 - $29.65) * 600 shares </div>
<div style="border: medium none;">
<br /></div>
<div style="border: medium none;">
1. Total Net Profit [If option exercised early (business day prior to the March 4th ex-dividend date)]: +$157.98</div>
<div style="border: medium none;">
= (+$847.98 options income +$0.00 dividend income -$690.00 capital appreciation); or</div>
<div style="border: medium none;">
2. Total Net Profit (If 600 Newmont shares assigned at the $28.50 strike price at the March 15th, 2024 expiration): +$307.98</div>
<div style="border: medium none;">
= (+$847.98 +$150.00 -$690.00)<br />
<br />
<div style="border: medium none;">
1. Potential Absolute Return-on-Investment [If option exercised on business day prior to next Monday's ex-dividend date]: +0.9%</div>
<div style="border: medium none;">
= +$157.98/$16,933.98</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If option exercised early): +68.1%</div>
<div style="border: medium none;">
= (+$157.98/$16,933.98) * (365/5 days); or</div>
<div style="border: medium none;">
2. Potential Absolute Return-on-Investment (If Newmont's shares assigned on the March 15th options expiration date): +1.8% </div>
<div style="border: medium none;">
= +$307.98/$16,933.98</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If 600 Newmont shares assigned at $28.50 at the March 15th, 2024 expiration): +41.5%</div>
<div style="border: medium none;">
= (+$307.98/$16,933.98) * (365/16 days)</div>
</div>
<br /><br />
At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown below, all nine criteria are achieved for this Newmont Corporation Covered Calls position.<b><b><br />
<br />
<div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir3stVnR_wmChz5CTy-sUUtfXV3y8a18IYD7R2Ubu9mC6K7ltGNogorWm3Kl23_TNzyqZ5F7Yimrt3YR4S7FKa2nP7C95ZcPm58nxYxn7L8UGooDNW93wX7MV-48aLATGiv2kCxD29HY3lzU2bB9v3QFOoMhvRsS9NvqqyzYuv9pt1F6NOmj_BFsShYGM/s840/NEM%20div%20capt.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="713" data-original-width="840" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir3stVnR_wmChz5CTy-sUUtfXV3y8a18IYD7R2Ubu9mC6K7ltGNogorWm3Kl23_TNzyqZ5F7Yimrt3YR4S7FKa2nP7C95ZcPm58nxYxn7L8UGooDNW93wX7MV-48aLATGiv2kCxD29HY3lzU2bB9v3QFOoMhvRsS9NvqqyzYuv9pt1F6NOmj_BFsShYGM/s600/NEM%20div%20capt.png" width="600" /></a></div>
<br />
<br /></b></b></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-60352882390618841052024-02-26T13:20:00.002-05:002024-02-26T14:30:07.562-05:00Established Covered Calls Position in Yum China Holdings Inc.This morning my buy/write limit order was executed in Yum China Holdings Inc. (ticker YUMC) to buy 500 shares and simultaneously sell 5 Call options at the March 15th, 2024 monthly options expiration date and at the $40.00 strike price. The net debit limit price for my order was $39.58 which was executed when 500 shares were purchased at $42.01 and 5 March 15th, 2024 Call options were sold for $2.43 per share. Therefore, a maximum potential time value profit of $.42 per share = [$2.43 options premium - ($42.01 stock price - $40.00 strike price)] is available for this position. <br /><br /><div>This position uses the Covered Calls Advisor's Dividend Capture Strategy since Yum China has an upcoming quarterly ex-dividend of $.16 per share (a 1.5% annual dividend yield) on Monday March 4th which is prior to the March 15th options expiration date. This is equivalent to an annualized dividend yield of 7.7% = [($.16/$42.01) x (365/18 days to expiration)]. I am encouraged by the increase in their quarterly dividend from $.13 last year to $.16 now (a 23% increase). This dividend is included in the detailed return-on-investment calculations below. Either an early assignment this Friday, March 1st (the last trading day prior to next Monday's March 4th ex-dividend date) or on the March 15th options expiration date would be desirable to the Covered Calls Advisor given the potential annualized return on investments for either outcome. Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on April 30th, 2024 is after the March 15th options expiration date.<br /><br />As shown on the table at the bottom of this post, eight of the nine criteria of the Dividend Capture Strategy are met with this position. Even if this Yum China stock price declines somewhat during the next 18 days until the options expiration date, if the stock closes above the $40.00 strike price, then a satisfactory annualized-return-on-investment of +29.4% will be achieved. The Delta for these Call options was approximately 75.7 when this position was established which approximates the probability of 75.7% that the position will be in-the-money at market close on the options expiration date. I also have a positive impression since like many of the quick service restaurant companies, Yum China has a relatively low Beta (3-year) of 0.77. </div><p>According to LSEG (Refinitiv), there are 27 Wall Street analysts covering Yum China and their average Target Price is $57.80 which is +37.6% above today's purchase price. Another reason for establishing this position was that Yum China is highly ranked in my Quality +Value +Growth stock screener since 17 of the 18 filters in that screener are currently achieved (see chart below). I am not overly concerned about the -2.9% current quarter eps growth estimate given the very positive trailing twelve months eps results as well as analysts' forecasts for an average next year eps growth estimate is at +13.6%. </p><p></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCUOzwwmPZTM6Jd78KXguvinNrjBRtkZCOe5g9o0p9t7jopptJF1vMMIZkkRAKv-tRYJoE9LpJ7CUffGfX2Cmhb3RiG7CHx8HgBSJPg6x3lleJcTSzNuGzEDgwlF_6YA7hFFhTSmz0JgzQTsbU1yYc3Ix9t0Nwdj6XSVFQxMuDV70D6wzitsZ-ZWm5hyQ/s739/YUMC%20Stock%20Rover.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="739" data-original-width="520" height="600" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCUOzwwmPZTM6Jd78KXguvinNrjBRtkZCOe5g9o0p9t7jopptJF1vMMIZkkRAKv-tRYJoE9LpJ7CUffGfX2Cmhb3RiG7CHx8HgBSJPg6x3lleJcTSzNuGzEDgwlF_6YA7hFFhTSmz0JgzQTsbU1yYc3Ix9t0Nwdj6XSVFQxMuDV70D6wzitsZ-ZWm5hyQ/s600/YUMC%20Stock%20Rover.png" /></a></div><br /> <br />
<b>As detailed below, two potential return-on-investment results are:</b><b> </b><br />
<p></p><ul>
<li><b> +1.0% absolute return-on-investment (equivalent to +54.4% annualized
return-on-investment for the next 7 days) if the stock is assigned early (on the last business day
prior to the March 4th ex-dividend date); or </b><b><br /></b></li>
</ul>
<ul>
<li><b>+1.4% absolute return-on-investment (equivalent to +29.4% annualized return-on-investment over the next 18 days) if the stock is assigned on the March 15th, 2024 options expiration date. </b></li>
</ul>
<br /><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRvkqPMiMynoNQvJf4i5BXlajEb3m-t06DmIfo3PP0QJqZmQkviIQUl66Vj1Txy0Rnxs7mppedG1xCnQ9K8yvp-TZ1hTuDaqzlCDr_KE3U3Icd8Y3W0PcTeDtlFdUltVdPyBpD10Ef9QByGAYv4iPXgIR2UE1S9L4fwXylgj0Jvzo1erj0y08B97_gTDQ/s599/YUMC%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="399" data-original-width="599" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRvkqPMiMynoNQvJf4i5BXlajEb3m-t06DmIfo3PP0QJqZmQkviIQUl66Vj1Txy0Rnxs7mppedG1xCnQ9K8yvp-TZ1hTuDaqzlCDr_KE3U3Icd8Y3W0PcTeDtlFdUltVdPyBpD10Ef9QByGAYv4iPXgIR2UE1S9L4fwXylgj0Jvzo1erj0y08B97_gTDQ/s200/YUMC%20logo.png" width="200" /></a></div>
<b>Yum China Holdings Inc. </b><b style="font-weight: bold;">(YUMC) -- </b><b style="font-weight: bold;">New Covered Calls Position</b><br />
The buy/write transaction was:<br />2/26/2024 Bought 500 Yum China shares @ $42.01.<br />2/26/2024 Sold 5 Yum China 3/15/2024 $40.00 Call options @ $2.43 per share. The Implied Volatility of these Calls was 26.2 when this position was established which, as I prefer, is well above the current 13.8 of the S&P 500 Volatility Index (i.e. VIX).<br />3/4/2024 Upcoming quarterly ex-dividend of $.16 per share.<br />
<br />
Two possible overall performance results (including commissions) for this Yum China Holdings Inc. Covered Calls position are as follows: <br />
Covered Calls Net Investment: $19,793.35<br />
= ($42.01 - $2.43) * 500 shares + $3.35 commission <br />
<br />
Net Profit Components:<br />
(a) Options Income: +$1,211.65<br />
= ($2.43 * 500 shares) - $3.35 commission <br />
(b) Dividend Income (If Yum China Call options exercised early on March 1st, 2024, the last business day prior to the March 4th ex-div date): +$0.00; or<br />
(b) Dividend Income (If YUMC stock assigned at the March 15th, 2024 options expiration date): +$80.00<br />
= ($.16 dividend per share x 500 shares)<br />
<div style="border: medium none;"><div class="separator" style="clear: both;">(c) Capital Appreciation (If YUMC's Call options assigned early on March 1st): -$1,005.00</div>
+($40.00 strike price - $42.01 stock purchase price) * 500 shares; or<br />
(c) Capital Appreciation (If shares assigned at $40.00 strike price at the March 15th options expiration): -$1,005.00<br />
+($40.00 - $42.01) * 500 shares </div>
<div style="border: medium none;">
<br /></div>
<div style="border: medium none;">
1. Total Net Profit [If option exercised early (business day prior to the March 4th ex-dividend date)]: +$206.65</div>
<div style="border: medium none;">
= (+$1,211.65 options income +$0.00 dividend income -$1,005.00 capital appreciation); or</div>
<div style="border: medium none;">
2. Total Net Profit (If YUMC's shares assigned at $40.00 at the March 15th, 2024 expiration): +$286.65</div>
<div style="border: medium none;">
= (+$1,211.65 options income +$80.00 dividend income -$1,005.00 capital appreciation)<br />
<br />
<div style="border: medium none;">
1. Potential Absolute Return-on-Investment [If option exercised on business day prior to the 3/4/2024 ex-dividend date]: +1.0%</div>
<div style="border: medium none;">
= +$206.65/$19,793.35</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If option exercised early): +54.4%</div>
<div style="border: medium none;">
= (+$206.65/$19,793.35) * (365/7 days); or</div>
<div style="border: medium none;">
2. Potential Absolute Return-on-Investment (If Yum China's shares assigned on the March 15th options expiration date): +1.4% </div>
<div style="border: medium none;">
= +$286.65/$19,793.35</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If shares are assigned at $40.00 at the March 15th, 2024 options expiration date): +29.4%</div>
<div style="border: medium none;">
= (+$286.65/$19,793.35) * (365/18 days)</div>
</div>
<br />At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown below, eight of the nine criteria are achieved for this Yum China Holdings Inc. Covered Calls position.
<div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZyR74PkancwTgVzzX8X0rmyhyphenhyphenTVW6o9npwYpLRzoRnS0MmQDdyEjDKKic9zzwhrrqvXLTAqf-RZJF2Ocikw962TPtP4pDJpsJ-3Bh3YV9Zh9iI_MXiA4ui7kAUMusQ_w5GCf0KUGXJ4apavL5tlFBABSvkKGYzVbMmAzjPGVjWmvcMw3VKDb70hOKTUY/s840/yumc%20div%20capt.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="713" data-original-width="840" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZyR74PkancwTgVzzX8X0rmyhyphenhyphenTVW6o9npwYpLRzoRnS0MmQDdyEjDKKic9zzwhrrqvXLTAqf-RZJF2Ocikw962TPtP4pDJpsJ-3Bh3YV9Zh9iI_MXiA4ui7kAUMusQ_w5GCf0KUGXJ4apavL5tlFBABSvkKGYzVbMmAzjPGVjWmvcMw3VKDb70hOKTUY/s600/yumc%20div%20capt.png" width="600" /></a></div>
<br />
<br />JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-50943659324438301052024-02-23T11:00:00.000-05:002024-02-23T11:00:13.753-05:00Covered Call Established in FedEx CorporationAt 9:53am ET this morning, a Covered Call position was established in FedEx Corporation (ticker symbol FDX) when the Covered Calls Advisor's buy/write limit order was executed. One hundred shares were purchased at $243.00 and 1 March 15th, 2024 monthly Call option was sold at $8.10 at the $237.50 strike price--so, the corresponding potential time value profit is $2.60 per share [$8.10 Call option premium - ($243.00 stock purchase price -
$237.50 strike price)]. Given the Covered Calls Advisor's current "Neutral" Overall Market Meter outlook, a slightly in-the-money Covered Call position was
established -- the Delta was 67.2 which closely approximates the probability
that the Call options will be
in-the-money on the options expiration date. In addition, the Implied Volatility of the Calls was 21.0 which (as I prefer) is significantly higher than the current 14.1 of the S&P 500 volatility index (i.e. VIX). There is an upcoming ex-dividend on March 8th of $1.26 per share (2.1% annual dividend yield), which is included in the potential return-on-investment results shown below. <p>FedEx stock price has declined by 13.2% since its last quarterly eps result was below analysts' average expectation. However, year-over-year eps results are expected to resume an increase above their prior year results beginning with the current quarter report upcoming on March 21st. As I prefer, this report will be after the March 15th options expiration date for this FedEx Covered Call position. In addition the Wall Street analysts' current average target price being +22.3% above today's purchase price, I was also impressed when reviewing the Refinitiv Stocks Reports current Average Score for FedEx garnered its highest rating of 10 (on their scale of 1 to 10).</p><b>As detailed below, two potential return-on-investment results for this FedEx Corporation Covered Call position are: (a) +1.1% absolute return (equivalent to +28.8% annualized
return-on-investment for the next 14 days) if the stock is assigned early [on the last trading day prior to the ex-dividend date]; OR (b) +1.6%
absolute return (equivalent to +28.5% annualized return over the next 21 days) if the stock is assigned on the March 15th, 2024 options expiration date. </b><br />
<br />
<p></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEih2Kc86q2hiXKDMF3YxyT5FduSKTiPuBqYLWmfBZhFdpr_468TGLFO_Fg4TsLNhXe7iACjTIRrEAFjtNloFb0A0m1z2mqTvXahQWH783uYJbb6OlnSsnTdsEJI1N-kBfE6y2puKfDKZlecX3_hT1kXhnZbfWZnM5hkj4Kbn_1lPvsS8TeWBN655cnF=s281" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="179" data-original-width="281" src="https://blogger.googleusercontent.com/img/a/AVvXsEih2Kc86q2hiXKDMF3YxyT5FduSKTiPuBqYLWmfBZhFdpr_468TGLFO_Fg4TsLNhXe7iACjTIRrEAFjtNloFb0A0m1z2mqTvXahQWH783uYJbb6OlnSsnTdsEJI1N-kBfE6y2puKfDKZlecX3_hT1kXhnZbfWZnM5hkj4Kbn_1lPvsS8TeWBN655cnF=s200" width="200" /></a></div><b><b>FedEx Corporation </b></b><b>(FDX) -- </b><b>New Covered Call Position</b>
<br />
The buy/write transaction was:<br />
2/23/2024 Bought 100 FedEx shares @ $243.00.<br />2/23/2024 Sold 1 FedEx 3/15/2024 $237.50 Call option @ $8.10 per share.<br />3/8/2024 Upcoming quarterly ex-dividend of $1.26 per share<br />
<br />
Two possible overall performance results (including commissions) for this FedEx Covered Call position are as follows: <br />
Covered Call Net Investment: $23,490.67<br />
= ($243.00 - $8.10) * 100 shares + $.67 commission<br />
<br />
Net Profit Components:<br />
(a) Options Income: +$809.33<br />
= ($8.10 * 100 shares) - $.67 commission<br />
(b) Dividend Income (If option exercised early on the business day prior to the ex-div date): +$0.00; <b>or</b><br />
(b) Dividend Income (If FedEx shares assigned at the March 15th, 2024 options expiration): +$126.00 <br />
= ($1.26 dividend per share x 100 shares)<br />
(c) Capital Appreciation (If FedEx shares assigned early): -$550.00<br />
+($237.50 strike price -$243.00 stock purchase cost) * 100 shares; <b>or</b><br />
(c) Capital Appreciation (If FedEx shares assigned at $237.50 strike price at options expiration): -$550.00<br />
+($237.50 - $243.00) * 100 shares<p></p>
<br />
<div style="border: medium none;">
1. Total Net Profit [If option exercised on March 7th, 2024 (last business day prior to the March 8th ex-dividend date)]: +$259.33</div>
<div style="border: medium none;">
= (+$809.33 option income +$0.00 dividend income -$550.00 capital appreciation); <b>or</b></div>
<div style="border: medium none;">
2. Total Net Profit (If FedEx shares assigned at $237.50 at the March 15th, 2024 options expiration): +$385.33 </div>
<div style="border: medium none;">
= (+$809.33 option income +$126.00 dividend income -$550.00 capital appreciation)<br />
<br />
<div style="border: medium none;">
1. Absolute Return-on-Investment (If FedEx option exercised early on the business day prior to the expiration date): +1.1%</div>
<div style="border: medium none;">
= +$259.33/$23,490.67</div>
<div style="border: medium none;">
Annualized Return-on-Investment (If option exercised early): +28.8%</div>
<div style="border: medium none;">
= (+$259.33/$23,490.67) * (365/14 days); <b>or</b></div>
<div style="border: medium none;">
2. Absolute Return-on-Investment (If FedEx shares assigned at the $237.50 strike price at the March 15th, 2024 options expiration date): +1.6% </div>
<div style="border: medium none;">
= +$385.33/$23,490.67</div>
<div style="border: medium none;">
Annualized Return-on-Investment (If FedEx stock assigned at the $237.50 strike price at the March 15th expiration date): +28.5%</div>
<div style="border: medium none;">
= (+$385.33/$23,490.67) * (365/21 days)</div>
</div>
<br />
Either
outcome would provide a satisfactory return-on-investment result. These returns will be achieved as long as the stock is
above the $237.50 strike price at assignment. If the stock declines
below the strike price, the breakeven price of $233.64 ($243.00 -$8.10 -$1.26)
provides 3.9% downside protection below today's purchase
price.<br /><br />
At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown in the chart below, all nine criteria are achieved for this FedEx Covered Call position.<br />
<br />
<div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0N2r5ejhnRVWEkXwRpY2hD72OMD51QIRjrlYJcXr3E9HYpE0GxkoHUkUAsmz6UaBhShUM-jhp1ZZJyQBmXYkUo3YL693ymvHHhbKBbicIDl-Nb4xumOSpOjz2W8PzNJILp5Ji11WnFXQ6pLtraCgZ22oSjsLa2UMswYSJUkDyoqxjzZL4cUj3-sgygDg/s840/FDX%20div%20capt.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="713" data-original-width="840" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0N2r5ejhnRVWEkXwRpY2hD72OMD51QIRjrlYJcXr3E9HYpE0GxkoHUkUAsmz6UaBhShUM-jhp1ZZJyQBmXYkUo3YL693ymvHHhbKBbicIDl-Nb4xumOSpOjz2W8PzNJILp5Ji11WnFXQ6pLtraCgZ22oSjsLa2UMswYSJUkDyoqxjzZL4cUj3-sgygDg/s600/FDX%20div%20capt.png" width="600" /></a></div>
<br /><p>As always, I encourage your email questions related to Covered Calls at any time. My email address is partlow@cox.net. <br /></p><p>Best Wishes,</p>Jeff Partlow (The Covered Calls Advisor)<br />
<br />
JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-42896337698501701062024-02-21T16:27:00.001-05:002024-02-21T16:30:53.561-05:00Established Covered Calls Position in Genuine Parts CompanyThis afternoon at 3:16pm ET, my buy/write limit order was executed in the Genuine Parts Company (ticker GPC) to buy 200 shares and simultaneously sell 2 Call options at the March 15th, 2024 monthly options expiration date and at the $140.00 strike price. The net debit limit price for my order was $138.76 which was executed when 200 shares were purchased at $143.41 and 2 March 15th, 2024 Call options were sold for $4.65 per share. Therefore, a maximum potential time value profit of $1.24 per share = [$4.65 options premium - ($143.41 stock price - $140.00 strike price)] is available for this position. <br /><br /><div>This position uses the Covered Calls Advisor's Dividend Capture Strategy (see <a href="https://coveredcallsadvisor.blogspot.com/2023/01/the-covered-calls-advisors-dividend.html">here</a>) since Genuine Parts has an upcoming quarterly ex-dividend of $1.00 per share (a 2.8% annual dividend yield) on February 29th which is prior to the March 15th options expiration date. This is equivalent to an annualized dividend yield of 11.1% = [($1.00/$143.41) x (365/23 days to expiration)]. This dividend is included in the detailed return-on-investment calculations below. Either an early assignment on the last trading day prior to the ex-dividend date or on the March 15th options expiration date would be desirable to the Covered Calls Advisor given the potential annualized return on investments for either outcome. Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on April 18th, 2024 is after the March 15th options expiration date.</div><div><br /></div><div>The Genuine Parts Company is based in Atlanta and is a distributor of automotive replacement parts under the NAPA brand (about 60% of sales) and also an industrial parts distributor (about 40% of sales). It has about 6,600 stores in North America and also has a growing presence internationally with an additional 3,000 locations in Europe and Asia that services maintenance, repair, and original equipment manufacturers. Some potential catalysts for the company include: (1) consistent quarterly EPS beat and at a rate faster than the typical mid-single digits revenue growth; (2) plans to continue increasing operating margins; (3) continued global expansion; and (4) confidence of management as demonstrated by the recent 5.3% quarterly dividend increase. Their stock valuation is also attractive with a 2023 actual P/E ratio of 15.3 compared to their prior 5-year average forward P/E of 18.8. <p>As shown on the table at the bottom of this post, all nine criteria of the Dividend Capture Strategy are met with this position. Even if the Genuine Parts stock price declines somewhat during the next 23 days until the options expiration date, if the stock closes above the $140.00 strike price, then a satisfactory annualized-return-on-investment of +25.5% will be achieved. The Delta for these Call options was approximately 68.5 when this position was established which approximates the probability of 68.5% that the position will be in-the-money at market close on the options expiration date. </p><p>There are 10 Wall Street analysts covering the Genuine Parts Company and their average Target Price is $158.90 which is +10.8% above today's purchase price. Another reason for establishing this position was that Genuine Parts was highly ranked in my Quality +Value +Growth stock screener since all 18 filters in that screener are currently achieved (see chart below): </p><p></p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrn1ev82NZ9mYwzNkFVYlifcJTWkqEd5O7ZSmrgLbx1XeBn2ZNTbVDsMdWgH4pUeE0MW3p_NS506NNgv7HBnozeuQajnaBN2DdxO-NuyUtNCWoSnwAtbfI2wSiFiNRDQykjZ07dCdvRTU2zr8VZ0ax_G9zdab8kxcqwUAnObya_0rI0B9ywgHwBN524fo/s687/GPC%20Q+V+G.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="687" data-original-width="476" height="600" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrn1ev82NZ9mYwzNkFVYlifcJTWkqEd5O7ZSmrgLbx1XeBn2ZNTbVDsMdWgH4pUeE0MW3p_NS506NNgv7HBnozeuQajnaBN2DdxO-NuyUtNCWoSnwAtbfI2wSiFiNRDQykjZ07dCdvRTU2zr8VZ0ax_G9zdab8kxcqwUAnObya_0rI0B9ywgHwBN524fo/s600/GPC%20Q+V+G.png" /></a></div><br /> <br />
<br />
<b>As detailed below, two potential return-on-investment results are:</b><b> </b><br />
<p></p><ul>
<li><b> +0.9% absolute return-on-investment (equivalent to +40.5% annualized
return-on-investment for the next 8 days) if the stock is assigned early (on the last business day
prior to the February 29th ex-dividend date); or </b><b><br /></b></li>
</ul>
<ul>
<li><b>+1.6% absolute return-on-investment (equivalent to +25.5% annualized return-on-investment over the next 23 days) if the stock is assigned on the March 15th, 2024 options expiration date. </b></li>
</ul>
<br /><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7fF7gdMRHnwCf60uWrT-bY4wfJdoeqZzU8dV-HFxszPorv0hiOfuvRcqgorjAC2ihoT-Hci5RxpKiS95myLwGMKnXeIPROX06oTVMkSA0onydNd2xclw9YKFpnNKPLz9-PhJ_g0hrheD_2Td1-cjrhkINlk6KVEYwGM2Mjg4Dg7uIgywTahjdsFDJZ6Y/s249/GPC%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="203" data-original-width="249" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7fF7gdMRHnwCf60uWrT-bY4wfJdoeqZzU8dV-HFxszPorv0hiOfuvRcqgorjAC2ihoT-Hci5RxpKiS95myLwGMKnXeIPROX06oTVMkSA0onydNd2xclw9YKFpnNKPLz9-PhJ_g0hrheD_2Td1-cjrhkINlk6KVEYwGM2Mjg4Dg7uIgywTahjdsFDJZ6Y/s200/GPC%20logo.png" width="200" /></a></div>
<b>Genuine Parts Company </b><b style="font-weight: bold;">(GPC) -- </b><b style="font-weight: bold;">New Covered Calls Position</b><br />
The buy/write transaction was:<br />2/21/2024 Bought 200 Genuine Parts Company shares @ $143.41.<br />2/21/2024 Sold 2 GPC 3/15/2024 $140.00 Call options @ $4.65 per share.<br />2/29/2024 Upcoming quarterly ex-dividend of $1.00 per share.<br />
<br />
Two possible overall performance results (including commissions) for this Genuine Parts Company Covered Calls position are as follows: <br />
Covered Calls Net Investment: $27,753.34<br />
= ($143.41 - $4.65) * 200 shares + $1.34 commission <br />
<br />
Net Profit Components:<br />
(a) Options Income: +$928.66<br />
= ($4.65 * 200 shares) - $1.34 commission <br />
(b) Dividend Income (If Genuine Parts Call options exercised early on February 28th, 2024, the last business day prior to the Feb. 29th ex-div date): +$0.00; or<br />
(b) Dividend Income (If GPC stock assigned at the March 15th, 2024 options expiration date): +$200.00<br />
= ($1.00 dividend per share x 200 shares)<br />
<div style="border: medium none;"><div class="separator" style="clear: both;">(c) Capital Appreciation (If GPC's Call options assigned early on Feb. 28th): -$682.00</div>
+($140.00 - $143.41) * 200 shares; or<br />
(c) Capital Appreciation (If shares assigned at $140.00 strike price at the March 15th options expiration): -$682.00 <br />
+($140.00 - $143.41) * 200 shares </div>
<div style="border: medium none;">
<br /></div>
<div style="border: medium none;">
1. Total Net Profit [If option exercised early (business day prior to the Feb. 29th ex-dividend date)]: +$246.66</div>
<div style="border: medium none;">
= (+$928.66 options income +$0.00 dividend income -$682.00 capital appreciation); or</div>
<div style="border: medium none;">
2. Total Net Profit (If GPC's shares assigned at $140.00 at the March 15th, 2024 expiration): +$446.66</div>
<div style="border: medium none;">
= (+$928.66 options income +$200.00 dividend income -$682.00 capital appreciation)<br />
<br />
<div style="border: medium none;">
1. Potential Absolute Return-on-Investment [If option exercised on business day prior to ex-dividend date]: +0.9%</div>
<div style="border: medium none;">
= +$246.66/$27,753.34</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If option exercised early): +40.5%</div>
<div style="border: medium none;">
= (+$246.66/$27,753.34) * (365/8 days); or</div>
<div style="border: medium none;">
2. Potential Absolute Return-on-Investment (If Genuine Parts' shares assigned on March 15th options expiration date): +1.6% </div>
<div style="border: medium none;">
= +$446.66/$27,753.34</div>
<div style="border: medium none;">Potential Annualized Return-on-Investment (If shares are assigned at $140.00 at the March 15th, 2024 expiration): +25.5%</div>
<div style="border: medium none;">
= (+$446.66/$27,753.34) * (365/23 days)</div>
</div>
<br />At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown below, all nine criteria are achieved for this Genuine Parts Company Covered Calls position.
<div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiD4FG4ZMV3qrCjWjUlY43A5wuXFi9C65r2dakJrzQ9McSj9jkqJVqwcvpYjrSc5EbrfD9sPTIc_9eCu1rUvuVz1KStX4F1TkZ7C4sbpejc1SRXlKkLYsR4yGUa544aKOMTTQYpl5TherIN-isY-z1Nm07ioo_LQTEUmV407eBsbjouyHTwRugXCIB-KKA/s840/GPC%20div%20capt.png" style="display: block; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="713" data-original-width="840" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiD4FG4ZMV3qrCjWjUlY43A5wuXFi9C65r2dakJrzQ9McSj9jkqJVqwcvpYjrSc5EbrfD9sPTIc_9eCu1rUvuVz1KStX4F1TkZ7C4sbpejc1SRXlKkLYsR4yGUa544aKOMTTQYpl5TherIN-isY-z1Nm07ioo_LQTEUmV407eBsbjouyHTwRugXCIB-KKA/s600/GPC%20div%20capt.png" width="600" /></a></div>
<br />
<br /></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-83296313098170660032024-02-21T14:12:00.003-05:002024-02-21T14:12:54.943-05:00Covered Calls Position Closed for Oshkosh CorporationLast Friday, the Covered Calls position in Oshkosh Corporation (ticker OSK) expired out-of-the-money since the closing stock price Friday of $108.65 was below the $110.00 strike price. Oshkosh's stock price increased in early trading today and I decided to close out the position by selling the 200 Oshkosh shares at $109.08. The resulting return-on-investment results are detailed below. These results show that despite the stock declining from its original $112.80 purchase price to $109.08 when it was closed out today, a small but positive return-on-investment profit can still be achieved. This outcome demonstrates the advantage of hedging a long stock position by selling Call options against the stock (i.e. our Covered Calls strategy) which provides good downside breakeven protection below the original purchase price. Using my Dividend Capture Strategy also added to the downside protection for this position.<div><br /></div><div>
<div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBoDSIbLD3P1n13piQoE-CwWWMb9LRVPIKKtX2u4NvavNtPErZ5uBYLiakV8IkozVa5MsoTmXQ0HjTyEPop5nyvVfCH0C5Ev019QZtX55My23H3YKvWogvtfbEjnuywmp8zdT-_cnaMClbCOVpVf2UUxEJ5mPcfX-Zx4-dG1uJqdMbKFuFYHeSAUmCxes/s388/OSK%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="130" data-original-width="388" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBoDSIbLD3P1n13piQoE-CwWWMb9LRVPIKKtX2u4NvavNtPErZ5uBYLiakV8IkozVa5MsoTmXQ0HjTyEPop5nyvVfCH0C5Ev019QZtX55My23H3YKvWogvtfbEjnuywmp8zdT-_cnaMClbCOVpVf2UUxEJ5mPcfX-Zx4-dG1uJqdMbKFuFYHeSAUmCxes/s200/OSK%20logo.png" width="200" /></a></div>
<b>Oshkosh Corporation </b><b style="font-weight: bold;">(OSK) -- </b><b style="font-weight: bold;">Covered Calls Position Closed Out by Decision</b><br />
The buy/write transaction was:<br />2/8/2024 Bought 200 Oshkosh Corporation shares @ $112.80.<br />2/8/2024 Sold 2 OSK 2/16/2024 $110.00 Call options @ $3.40 per share.<br />
Note: Implied Volatility (IV) of the Call options was at 22.6 when this position was transacted which, as preferred, is above the current VIX of 12.9. <br />2/14/2024 Ex-dividend of $.46 per share. The Delta of these Calls was 72.3.<br />
2/16/2024 Two OSK Calls closed below the $110.00 strike price @ $108.65 per share, so the 2 Oshkosh Call options expired and 200 Oshkosh Corp. shares remained in the Covered Calls Advisor Portfolio.<br />2/21/2024 Closed out this Oshkosh Covered Calls position by selling 200 shares @ $109.08 per share.</div><div><br />
The overall performance results (including commissions) for this Oshkosh Covered Calls position are as follows: <br />
Covered Calls Net Investment: $21,881.34<br />
= ($112.80 - $3.40) * 200 shares + $1.34 commission <br />
<br />
Net Profit Components:<br />
(a) Options Income: +$678.66<br />
= ($3.40 * 200 shares) - $1.34 commission <br />(b) Dividend Income: +$92.00<br />
= ($.46 dividend per share x 200 shares)<br />
<div style="border: medium none;"><div class="separator" style="clear: both;">(c) Capital Appreciation: -$744.00</div>
+($109.08 stock selling price per share - $112.80 stock purchase price) * 200 shares </div>
<div style="border: medium none;">
<br /></div>
<div style="border: medium none;">Total Net Profit: +$26.66</div>
<div style="border: medium none;">
= (+$678.66 options income +$92.00 dividend income -$744.00 capital appreciation)<br />
<br />
<div style="border: medium none;">Absolute Return-on-Investment: +0.1%</div>
<div style="border: medium none;">
= +$26.66/$21,881.34</div>
<div style="border: medium none;">Annualized Return-on-Investment: +0.3%</div>
<div style="border: medium none;">
= (+$210.66/$21,881.34) * (365/13 days)</div></div><br /></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-82823530627634781962024-02-21T09:47:00.004-05:002024-02-21T09:47:46.244-05:00Continuation of Covered Calls Position in KraneShares CSI China Internet ETF The Covered Calls Advisor Portfolio has a Covered Calls position in the KraneShares CSI China Internet ETF (ticker KWEB) which expired out-of-the-money last Friday on its February 16th, 2024 options expiration date.
Today this position was continued by rolling out to the March 1st, 2024 weekly options expiration at the same $25.50 strike price by selling-to-open ten Calls at $0.75 per share. The Implied Volatility of the Call options was 40.9 when this transaction was executed and the stock price was $25.59, which is slightly in-the-money compared with the $25.50 strike price. <br /><p><b>As detailed below, a potential outcome for this KraneShares CSI China Internet ETF is +6.4% absolute return-on-investment over 57 days (equivalent to +41.1</b><b style="font-weight: bold;">% annualized-return-on-investment)<b>. </b></b>The transactions history of this KWEB Covered Calls position so far along with a potential return-on-investment result if the stock is assigned on the 3/1/2024 options expiration date is as follows:</p><p></p> <br /><b><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCYsK_J0bL03oD7j6Ap0UgRHPh2UsnPHGVqA5tJ_65aQhnjyiWrTZbH5QO1PdFQC5UHwdwVIr7i_mG5Y06XgIG2p1W8xH6iJ-eayl_F6mr5NcYqZaf2hOcnKGXgynZM07-_wqsF79gMWj9Ewoc1SKAoMat_ch2HabIsZeYZA8GIu7yrx6Gs75u5RQpTbA/s900/KWEB%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="506" data-original-width="900" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCYsK_J0bL03oD7j6Ap0UgRHPh2UsnPHGVqA5tJ_65aQhnjyiWrTZbH5QO1PdFQC5UHwdwVIr7i_mG5Y06XgIG2p1W8xH6iJ-eayl_F6mr5NcYqZaf2hOcnKGXgynZM07-_wqsF79gMWj9Ewoc1SKAoMat_ch2HabIsZeYZA8GIu7yrx6Gs75u5RQpTbA/s200/KWEB%20logo.png" width="200" /></a></div>KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position</b> <br />The Buy/Write transaction was as follows:<br />1/4/2024 Bought 1,000 shares of CSI China Internet ETF @ $26.22 per share. <br />1/4/2024 Sold 10 KWEB Jan. 19th, 2024 $25.50 Call options @ $1.14 per share. <br />1/19/2024 KWEB price closed below the $25.50 strike price so the ten Call options expired and 1,000 KWEB shares remain in the Covered Calls Advisor Portfolio.<div>2/6/2024 Continued this KWEB Covered Calls position by selling 10 KWEB February 16th, 2024 $25.50 Call options @ $.46 per share.<br />2/16/2024 KWEB price closed below the $25.50 strike price so the ten Call options expired and 1,000 KWEB shares remain in the Covered Calls Advisor Portfolio.<br />2/21/2024 Continued this KWEB Covered Calls position by selling 10 KWEB March 1st, 2024 $25.50 Call options @ $.75 per share. </div><p>A possible overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows: <br />KWEB Covered Calls Net Investment: $25,086.70<br />
= ($26.22 - $1.14) * 1,000 shares + $6.70 commission<br />
<br />
Net Profit:<br />
(a) Options Income: +$2,329.90<br />
= ($1.14 + $.46 + $.75) * 1,000 shares - $20.10 commissions<br />(b) Dividend Income: +$0.00<br />
(c) Capital Appreciation (If 1,000 CSI China Internet ETF shares assigned at $25.50 strike price at the 3/1/2024 options expiration): -$720.00 <br />
+($25.50 - $26.22) * 1,000 shares<br /><br />
Total Net Profit Potential (If 1,000 CSI China Internet ETF shares assigned at $25.50 strike price on the 3/1/2024 options expiration date): +$1,609.90<br />
= (+$2,329.90 options income +$0.00 dividend income -$720.00 capital appreciation)</p><p>Potential Absolute Return-on-Investment: +6.4%<br />
= +$1,609.90/$25,086.70<br />Potential Annualized Return-on-Investment: +41.1%<br />
= (+$1,609.90/$25,086.70) * (365/57 days)</p><p></p>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-69658332830986651472024-02-20T10:30:00.004-05:002024-02-20T10:32:29.912-05:00Continuation of Covered Calls Position in Schlumberger LtdThe Covered Calls Advisor Portfolio has a Covered Calls position in Schlumberger Ltd. (now SLB) which expired out-of-the-money at last Friday's options expiration.
Today this position was continued by rolling out to the March 1st, 2024 weekly options expiration at the $50.00 strike price by selling-to-open three Calls at $.56 per share when the
price of SLB stock was $48.87. <br /><p><b>As detailed below, a potential outcome for this SLB investment if the stock is in-the-money and therefore assigned on the options expiration date is +1.0% absolute return-on-investment over 32 days (equivalent to +10.9</b><b><b>% annualized-return-on-investment) </b>if the stock closes above the $50.00 strike price on the March 1st, 2024 options expiration date<b>. </b></b>The transactions history of this SLB Covered Calls position so far along with a potential return-on-investment result if the stock is assigned on the March 1st, 2024 options expiration date is as follows:</p><div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRN7rZo8NnHrdebjrCP2URlJvOMTSUS_2KNeYHwxFrwqhn6HDFs8Phzch11epDHEK_PewASZhlakIy6kRzM3kqzzD2Dudtu8CSMKYbXOX1-E-mwLXQwgUtXLdgR4JRCn9ceuLad0uWUswTIeO4cLqauqTpOf36bYVNNKFGluafaoFzM-cpz2LdFVUYhU0/s275/SLB%20logo.png" style="clear: right; display: block; float: right; padding: 1em 0px; text-align: center;"><img alt="" border="0" data-original-height="183" data-original-width="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRN7rZo8NnHrdebjrCP2URlJvOMTSUS_2KNeYHwxFrwqhn6HDFs8Phzch11epDHEK_PewASZhlakIy6kRzM3kqzzD2Dudtu8CSMKYbXOX1-E-mwLXQwgUtXLdgR4JRCn9ceuLad0uWUswTIeO4cLqauqTpOf36bYVNNKFGluafaoFzM-cpz2LdFVUYhU0/s200/SLB%20logo.png" width="200" /></a></div><p></p><p></p><br />
<b><b>Schlumberger Ltd. </b></b><b>(SLB) -- Continuation of C</b><b>overed Calls Position</b><br />
The buy/write transaction was:<br />
01/29/2024 Bought 300 Schlumberger shares @ $52.43<br />
01/29/2024 Sold 3 Schlumberger 2/16/2024 $51.00 Call options @ $2.09<br />
Note: the Time Value (aka Extrinsic Value) in the Call options was $.66 per share = [$2.09 Call options premium - ($52.43 stock price - $51.00 strike price)]<br />
02/06/2024 Quarterly ex-dividend of $.275 per share<br />2/16/2024 SLB stock price was below the $51.00 strike price, so the Calls expired and the 300 SLB shares remained in the Covered Calls Advisor Portfolio. <div>2/20/2024 Continued this SLB Covered Calls position by selling three March 1st, 2024 $50.00 Call options @ $.56 per share when the stock was trading at $48.87. The Delta for these Calls was 33.8 when this transaction was executed.</div><div><br />A possible overall performance result (including commissions) for this SLB Covered Calls position if assigned on the March 1st expiration date is as follows: <br />
Covered Calls Net Investment: $15,104.01<br />
= ($52.43 - $2.09) * 300 shares + $2.01 commission <br />
<br />
Net Profit Components:<br />
(a) Options Income: +$790.98<br />
= ($2.09 + $.56) * 300 shares - $4.02 commissions<br />(b) Dividend Income: +$82.50 <br />
= ($.275 dividend per share x 300 shares)<br />
<div style="border: medium none;">(c) Capital Appreciation (If SLB shares assigned at $50.00 strike price at the March 1st options expiration): -$729.00 <br />
+($50.00 strike price - $52.43 stock purchase price) * 300 shares </div>
<div style="border: medium none;">
<br /></div>
<div style="border: medium none;">Total Net Profit (If SLB shares assigned at $50.00 strike price at the March 1st, 2024 expiration): +$144.48</div>
<div style="border: medium none;">
= (+$790.98 options income +$82.50 dividend income -$729.00 capital appreciation)<br />
<br />
<div style="border: medium none;">Potential Absolute Return-on-Investment (If SLB shares assigned at $50.00 at the March 1st, 2024 options expiration): +1.0%</div>
<div style="border: medium none;">
= +$144.48/$15,104.01 </div>
<div style="border: medium none;">Potential Annualized Return-on-Investment: +10.9%</div>
<div style="border: medium none;">
= (+$144.48/$15,104.01) * (365/32 days)</div>
</div>
<br /></div>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.comtag:blogger.com,1999:blog-4963540653553139724.post-74758260563131728312024-02-17T09:41:00.002-05:002024-02-17T10:06:16.972-05:00Monthly Options Expiration Results through February 16th, 2024Each month after the monthly options expiration date, this summary report provides the results on all positions that have been closed out during the past month (i.e. since the prior month's options expiration date). So this post covers the period from the day after last month's January 19th, 2024 options expiration through yesterday's February 16th, 2024 monthly options expiration date. <p></p><p>During this past month, the Covered Calls Advisor Portfolio closed a total of fourteen positions. Twelve positions were closed out at a profit and two positions were closed out at a loss. In addition, three Covered Calls expired out-of-the-money on yesterday's monthly options expiration date (so those shares currently remain in the Covered Calls Advisor Portfolio). </p><p>The specific results for each position are summarized as follows: </p><ul><li>Five Covered Calls positions were closed out when their Call options expired in-the-money (stock price above the strike price) on yesterday's February 16th, 2024 monthly options expiration date as follows:</li></ul><ol style="text-align: left;"><li>Halozyme Therapeutics Inc. -- +7.0% absolute return-on-investment in 44 days (equivalent to a +57.7% annualized return-on-investment). </li><li>United Therapeutics Corporation -- +1.4% absolute return-on-investment in 21 days (equivalent to a +24.6% annualized return-on-investment). </li><li>Match Group Inc. -- +1.7% absolute return-on-investment in 16 days (equivalent to a +37.8% annualized return-on-investment).</li><li>Wells Fargo Bank N.A. -- +2.1% absolute return-on-investment in 21 days (equivalent to a +36.6% annualized return-on-investment).</li><li>Lamb Weston Holdings Inc. -- +1.4% absolute return-on-investment in 21 days (equivalent to a +24.6% annualized return-on-investment).</li></ol><div><br /></div><p></p><p></p><p></p><ul style="text-align: left;"><li>Five Covered Calls positions were closed out by early decision as follows:</li></ul><ol style="text-align: left;"><li>Aptiv Corporation -- +3.3% absolute return-on-investment in 18 days (equivalent to a +66.7% annualized return-on-investment).</li><li>Freeport McMoRan Copper and Gold Inc. -- -1.6% absolute return-on-investment in 19 days (equivalent to a -31.3% annualized return-on-investment).</li><li>APA Corporation -- +0.0% absolute return-on-investment in 21 days (equivalent to a +0.7% annualized return-on-investment).</li><li>CVS Health Corporation -- -4.8% absolute return-on-investment in 15 days (equivalent to a -117.7% annualized return-on-investment).</li><li>Las Vegas Sands Corporation -- +1.3% absolute return-on-investment in 11 days (equivalent to a +41.8% annualized return-on-investment).</li></ol><div><br /></div><p></p><ul style="text-align: left;"><li>Three Covered Calls positions were closed out early when the Call owners decided to exercise their right to close out their options prior to these companies' ex-dividend date. So, the three Covered Calls positions were closed out. The Calls expired and the shares were sold at their respective strike prices with the following results: </li></ul><ol style="text-align: left;"><li>D.R. Horton Inc. -- +0.8% absolute return-on-investment in 7 days (equivalent to a +40.6% annualized return-on-investment).</li><li>TJX Companies Inc. -- +0.7% absolute return-on-investment in 9 days (equivalent to a +29.3% annualized return-on-investment).</li><li>Aflac Inc. -- +0.6% absolute return-on-investment in 6 days (equivalent to a +34.9% annualized return-on-investment).</li></ol><div><br /></div><ul style="text-align: left;"></ul><ul style="text-align: left;"></ul><ul style="text-align: left;"><li>One Covered Calls position was closed out in-the-money on its weekly options expiration date during the past month as follows: EOG Resources Inc. -- +1.7% absolute return-on-investment in 17 days (equivalent to a +37.3% annualized return-on-investment).</li></ul><div><br /></div><ul style="text-align: left;"><li>Three Covered Calls positions closed out-of-the-money yesterday on their February 16th, 2024 monthly options expiration date, so the Call options expired and the shares now remain in the Covered Calls Advisor Portfolio. Three hundred shares of Schlumberger Ltd. closed at $48.57 per share which was below its $51.00 strike price. Two hundred shares of Oshkosh Corporation closed at $108.65 which was below its $110.00 strike price. One thousand shares of KraneShares CSI China Internet ETF shares closed at $25.41 which was below its $25.50 strike price. Next week, decisions will be made to either close out the positions by selling the shares or to continue the Covered Calls positions by selling future Call options against the shares currently held. As always, the details of all transactions-to-date will be posted on this blog site on the same day the transactions occur.</li></ul><div><br /></div><p></p><p></p><p></p><p></p><p></p><p></p><p></p><p>During the past year
(last 12 months) 114 of 127 positions (89.8%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit. <b>The Covered Calls Advisor Portfolio weighted average annualized-return-on-investment (aroi) was +14.3</b><b>% during the past year and the average holding period for these 127 closed positions was 19.9 days. In comparison, the benchmark S&P 500 has returned +20.7% during the same prior one-year period. </b></p><p></p><p>This Covered Calls Advisor blog is available to anyone interested in learning about implementing a successful Covered Calls investing strategy. As always, I also encourage you to email me at partlow@cox.net any time you would like my feedback on your Covered Call position ideas or your questions on anything related to the Covered Calls investing strategy.</p><p> </p><p></p><p>Best Wishes,</p><p>Jeff Partlow<br />Covered Calls Advisor<br />partlow@cox.net</p>JEFF PARTLOW: THE COVERED CALLS ADVISORhttp://www.blogger.com/profile/08557852106022595430noreply@blogger.com