UnitedHealth Group Inc. (UNH) -- Covered Calls Position Assigned (i.e. Closed Out) at the May 3rd, 2019 Options Expiration
The transactions were as follows:03/27/2019 Bought 100 shares UnitedHealth Group @ $239.44
03/27/2019 Sold 1 UNH April 18, 2019 $230.00 Call option @ $13.39
Note: this was a simultaneous Buy/Write transaction.
04/18/2019 One UNH April 18th $230.00 Call option expired with the UNH stock price at $221.75 (below the $230.00 strike price)
04/22/2019 Sold 1 UnitedHealth Group May 3rd, 2019 $230.00 Call option @ $3.25
Note: the price of UnitedHealth Group stock was $225.30 when this Call was sold and its Implied Volatility was 30.4
05/03/2019 One UNH May 3rd, 2019 $230.00 Call option expired in-the-money, so 100 shares of UNH stock sold at the $230.00 strike price
Note: the price of UNH stock was $231.95 upon the May 3rd options expiration
The overall performance result (including commissions) was as follows:
Covered Call Cost Basis: $22,610.62
= ($239.44 - $13.39) * 100 shares + $5.62 commission
Net Profit:
(a) Option Income: +$1,658.38
= ($13.39 +$3.25) * 100 shares - $5.62 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (100 UnitedHealth Group Inc. shares assigned at $230.00 strike price at May 3rd options expiration): -$948.95
= ($230.00-$239.44) * 100 shares - $4.95 commission
Total Net Profit: $709.43
= +$1,658.38 option income + $0.00 dividend income - $948.95 capital appreciation
Absolute Return: +3.1%
= +$709.43/$22,610.62
Annualized Return: +30.1%
= (+$709.43/$22,610.62)*(365/38 days)
