May 17th, 2019 Options Expiration Results

The Covered Calls Advisor Portfolio had five Covered Call positions since the April 18th, 2019 monthly options expiration date.  Four Covered Calls positions were closed out at a profit prior to the May 17th expiration.  The detailed results for each position were provided on this blog on the same day they were closed:

• Bristol-Myers Squibb Co. (BMY) -- See link
• Baidu Inc. (BIDU) -- link
• UnitedHealth Group Inc. (UNH) -- link
• Alibaba Group Holding Ltd. (BABA) -- link 

• One Covered Call position (Alphabet Inc.) closed in-the-money on the May 17th options expiration date yesterday, so those shares were assigned (sold) at the $1,160.00 strike price.  The return-on-investment result for this position was +12.5% absolute return (equivalent to +33.3% annualized) for the 137 days of this investment.  Details are shown below.     

All 30 positions that have been closed out so far in 2019 achieved a profit.  The weighted average annualized return on investment for these 30 positions is +44.0%.  As shown in the right sidebar, there are now no open positions in the Covered Calls Advisor Portfolio.  The cash (held in money market account at 2.3% yield) now available in the Covered Calls Advisor Portfolio from the closing of these position will be retained until new Covered Calls and/or 100% Cash-Secured Puts positions are established.  All future transactions will continue to be posted on this site on the same day they occur.  As always, please email me at the address shown in the right sidebar with any questions or comments related to this Covered Calls Advisor blog.

Alphabet Inc. Class A (GOOGL) -- Covered Call Position Closed

The transactions were as follows:
01/01/2019 100 GOOGL shares owned at $1,044.96 per share
01/01/2019 1 Jan 18th, 2019 $1,085.00 short Call option valued at $19.80 per share
01/18/2019  Bought-to-Close 1 Jan 18th $1,085.00 Call option @ $19.25
01/18/2019 Sold-to-Open 1 Feb 15th, 2019 $1,095.00 Call @ $41.70
Note: the price of GOOGL stock was $1,104.73 when this roll out and up transaction occurred.
02/15/2019 Bought-to-Close 1 Feb 15th $1,095.00 Call @ $22.40
02/15/2019 Sold-to-Open 1 Mar 15th, 2019 $1,090.00 Call @ $44.50
Note: the price of GOOGL stock was $1,117.25 when this roll out and down transaction occurred.
03/15/2019 Bought-to-Close 1 Mar 15th $1,090.00 Call @ $98.82
03/15/2019 Sold-to-Open 1 April 18th, 2019 $1,130.00 Call @ $69.72
Note: the price of GOOGL stock was $1,188.50 when this roll out and up transaction occurred.
04/18/2019 Bought-to-Close 1 Apr 18th $1,130.00 Calls @ $111.40
04/18/2019 Sold-to-Open 1 May 17th, 2019 $1,160.00 Calls @ $91.90
05/17/2019 One Alphabet Inc. May 17th, 2019 $1,160.00 Call option expired in-the-money, so 100 shares of GOOGL stock sold at $1,160.00 strike price
Note: the price of GOOGL stock was $1,168.78 at the May 17th options expiration

The overall performance result (including commissions) of this in-the-money position was as follows:
Cost Basis: $104,496.00
= $1,044.96 per share value at end of December, 2018 * 100 shares

Net Profit Components:
(a) Options Income: +$1,550.46
= (+$19.80 - $19.25 + $41.70 - $22.40 + $44.50 -$98.82 +$69.72 - $111.40 + $91.90) * 100 shares - $24.54 commissions
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (GOOGL stock closed above $1,160.00 strike price at May 17th expiration): +$11,499.05
= ($1,160.00 -$1,044.96) * 100 shares - $4.95 commission

Total Net Profit: +$13,049.51
= (+$1,550.46 options income +$0.00 dividend income +$11,499.05 capital appreciation)

Absolute Return: +12.5%
= +$13,049.51/$104,496.00
Equivalent Annualized Return: +33.3%
= (+$13,049.51/$104,496.00)*(365/137 days)