March 29th, 2019 Options Expiration Result -- Medtronic PLC Covered Calls Position Closed

The Covered Calls Advisor Portfolio (CCAP) contained one position (Medtronic PLC) with a March 29th, 2019 options expiration.  Today, with the stock price closing price of $91.09, the two $91.00 Call options expired in-the-money; so the 200 shares of MDT stock were assigned (i.e. sold) at the $91.00 strike price and the maximum potential return-on-investment (ROI) result of  +0.9% absolute return (equivalent to +32.0% annualized return for the 10 days holding period) was achieved. 

This position was a rare one for the Covered Calls Advisor since it was established with weekly options and for a very short (10 days total duration).  Almost all Covered Calls Advisor positions are with monthly expirations and with durations of between two and six weeks (with the average duration being one month).  As I described in the post when this Medtronic position was established, I viewed it as an "experiment" in order to gain experience with the pros and cons of weekly options (i.e. "weeklies") compared with monthlies.  The advantage of weeklies is the somewhat higher implied volatility of the weekly options, so they provide an opportunity for a somewhat higher annualized return-on-investment.  This advantage is partially offset by the greater trading costs caused by: (a) less desirable order fill prices because of fewer open contracts on weeklies and thus higher bid/ask spreads on their options; and (b) more frequent trading (four positions per month instead of one), which is very time consuming.  Also, unlike monthlies, weeklies do not allow either sufficient time to repair a position when the stock has a short-term price decline or allow adequate time for the stock price to mean revert.  So, going forward, I am likely to continue to use monthlies almost exclusively and only take weekly positions in special situations (like the dividend capture situation with this Medtronic position).  

Medtronic PLC (MDT) -- Covered Calls Position Closed

The transactions were was as follows:
03/20/2019  Bought 200 shares of MDT @ $92.08
03/20/2019 Sold 2 MDT March 29th, 2019 $91.00 Call options @ $1.40
Note: this was a simultaneous Buy/Write transaction.
03/21/2019 Ex-dividend of $.50 per share x 200 shares = $100.00
03/29/2019 The two MDT Mar 29th $91.00 Call options closed in-the-money (the $91.08 stock price above the $91.00 strike price), so 200 shares of Medtronic stock sold at $91.00 strike price

The overall performance result (including commissions) was as follows:
Covered Calls Cost Basis: $18,142.29
= ($92.08 - $1.40) * 200 shares + $6.29 commission

Net Profit:
(a) Options Income: +$280.00
= ($1.40 * 200 shares)
(b) Dividend Income: +$100.00
= $.50 per share * 200 shares
(c) Capital Appreciation (MDT shares are above $91.00 strike price at March 29th expiration): -$220.95
= ($91.00 - $92.08) * 200 shares - $4.95 commission

Total Net Profit: +$159.05
= (+$280.00 options income +$100.00 dividend income -$220.95 capital appreciation)

Absolute Return: +0.9%
= +$159.05/$18,142.29
Annualized Return: +32.0%
= (+$159.05/$18,142.29)*(365/10 days)