Positions Closed in Lowes Corp. and SPDR S&P 500 ETF

Today, two short Put positions in Lowes Corp.(LOW) and SPDR S&P 500 ETF (SPY) were closed by buying-to-close these April 17th 100% cash-secured Puts. Details for each of these positions are provided below.

The Covered Calls Advisor continues to plot daily new cases of coronavirus in the United States:
 

This chart shows that new cases appeared to be stabilizing in the 20,000 daily new cases area for three days, but unfortunately the upward trend has resumed for the past two days which in combination with substantially higher weekly unemployment claims reported tomorrow morning is most likely to result in a continuation in April of the historic stock market decline just experienced in March.

After liquidating these two positions, the Covered Calls Advisor Portfolio is now only 25% invested and is 75% in cash/money markets. As shown in the right sidebar of this blog, the current investments are primarily in-the-money Covered Calls at the April 17th, 2020 monthly options expiration date.  

1.  Lowes Corp. (LOW) -- Position Closed
The transactions were as follows:
03/30/2020 Sold 3 Lowes April 17, 2020 $80.00 100% Cash-Secured Put options @ $3.40 per share 
Note: The Open Interest in these Puts was 2,547 contracts
04/01/2020 Bought-to-Close 3 Lowes April 17, 2020 $80.00 Puts @ $3.65 per share
Note: the price of Lowes stock was $83.00 when these Puts were purchased to close the position.

The performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $24,002.01
= $80.00 per share * 300 shares + $2.01 commissions

Net Profit Components:
(a) Options Income: -$77.01
= ($3.40 - $3.65) per share * 300 shares) - $2.01 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$0.00

Total Net Profit: -$77.01
= (-$77.01 options income +$0.00 dividend income + $0.00 capital appreciation)

Absolute Return: -0.3%
= -$77.01/$24,002.01
Equivalent Annualized Return: -58.6%
= (-$77.01/$24,002.01) * (365/2 days)



2.  SPDR S&P 500 ETF (SPY) -- Position Closed

The transactions were as follows:
03/26/2020 Sold 2 April 17, 2020 $235.00 100% Cash-Secured Put options @ $8.85 per share 
Note: The Open Interest in these Puts was 123,399 contracts
04/01/2020 Bought-to-Close 2 SPY April 17, 2020 $235.00 Puts @ $5.98 per share
Note: the price of the SPY ETF was $250.70 when these Puts were purchased to close the position.

The performance result (including commissions) was as follows:
100% Cash-Secured Cost Basis: $47,006.29
= $235.00 per share * 200 shares +$6.29 commissions

Net Profit Components:
(a) Options Income: +$574.00
= ($8.85 - $5.98) * 200 shares
(b) Dividend Income: +$0.00
(c) Capital Appreciation: +$0.00

Total Net Profit: +$574.00
= (+$574.00 options income +$0.00 dividend income + $0.00 capital appreciation)

Absolute Return: +1.2%
= +$574.00/$47,006.29
Equivalent Annualized Return: +74.3%
= (+$574.00/$47,006.29)*(365/6 days)