June 19th, 2020 Options Expiration Results

The Covered Calls Advisor Portfolio had thirteen positions with June 19th, 2020 options expirations. Twelve of the positions closed in-the-money and one closed out-of-the-money.  For the twelve closed positions, the maximum potential return-on-investment results were achieved as follows:

• Alphabet Inc. (GOOGL) -- +1.9% absolute return (equivalent to +29.3% annualized) for the 24 days of this investment  
• American International Group Inc. (AIG) Position #1 -- +3.9% absolute return (equivalent to +67.2% annualized) for the 23 days of this investment
• American International Group Inc. (AIG) Position #2 -- +2.5% absolute return (equivalent to +103.2% annualized) for the 9 days of this investment  
• Borg Warner Inc. (BWA) -- +3.0% absolute return (equivalent to +38.0% annualized) for the 29 days of this investment
• Discover Financial Services (DFS) -- +5.8% absolute return (equivalent to +65.9% annualized) for the 32 days of this investment
• Exelon Corporation (EXC) -- +3.8% absolute return (equivalent to +34.3% annualized) for the 40 days of this investment  
• Goldman Sachs Group (GS) -- +4.6% absolute return (equivalent to +58.3% annualized) for the 29 days of this investment  
• International Paper Inc. (IP) -- +2.7% absolute return (equivalent to +34.4% annualized) for the 29 days of this investment
• Micron Technology Inc. (MU) Position #1 -- +3.4% absolute return (equivalent to +33.1% annualized) for the 38 days of this investment  
• Micron Technology Inc. (MU) Position #2 -- +2.2% absolute return (equivalent to +45.0% annualized) for the 18 days of this investment
• Tyson Foods Inc. (TSN) -- +2.3% absolute return (equivalent to +27.4% annualized) for the 30 days of this investment
• ViacomCBS Inc. (VIAC) -- +3.3% absolute return (equivalent to +69.9% annualized) for the 17 days of this investment

The cash now available will be retained until new Covered Calls and/or 100% Cash-Secured Puts positions are established.  Given the Covered Calls Advisor's Overall Market Meter outlook of  'Bearish', new positions will be hedged by establishing Covered Calls at moderately in-the-money strike prices with good downside protection, that being normally at deltas greater than 70.

The ConocoPhillips Covered Calls position at the $44.00 strike price closed out-of-the-money at $43.70 at options expiration.  So, the 3 June 19th Call options expired and the 300 COP shares remain in the Covered Calls Advisor Portfolio.  A decision will be made very soon (probably this Monday) to either sell the shares or to continue with Covered Calls positions by selling Call options against the shares currently held.  Right now, selling the shares is most likely since the stock was purchased at $46.50 and closed yesterday at $43.70 (6.0% below the purchase price) while over the same time period the price of WTI crude oil increased slightly from $38.73 to $39.43.  More importantly, Conoco's CEO recently stated that any significant production increases are likely a few more months away and only if the oil price continues to rebound.  As always, transactions in the Covered Calls Advisor Portfolio will be posted on this blog on the same day they occur. 

As always, please email me at partlow@cox.net with any questions or comments related specifically to this post or to anything else related to Covered Calls investing.

Best Wishes and Godspeed,
Jeff Partlow