Closed Covered Calls Position in Fifth Third Bancorp

At the July17th options expiration last Friday, the Covered Calls position in Fifth Third Bancorp expired with the stock price below the $19.00 strike price. This morning, very soon after the market opened, the 500 shares of Fifth Third Bancorp in the Covered Calls Advisor Portfolio were sold with a market order than executed at $18.67 per share.

As detailed below, the return-on-investment result for this Fifth Third Bancorp Covered Calls position was +2.2% absolute return in 32 days (equivalent to a +24.6% annualized return-on-investment).  This result is a good example of the advantage that can accrue from selling in-the-money Covered Calls.  Despite the stock declining by 14.8% (from $21.92 purchase price to $18.67 sale price), a net profit was still achieved from this position.

Fifth Third Bancorp (FITB) -- Covered Calls Position Closed

The transactions were as follows:
06/18/2020 Bought 500 shares of Fifth Third Bancorp @ $21.92 per share 
06/18/2020 Sold 5 Fifth Third Bancorp July 17th, 2020 $19.00 Call options @ $3.38 per share
06/29/2020 Ex-dividend of $.27 per share
07/17/2020 5 FITB Calls expired out-of-the-money
Note: the price of FITB shares was $18.76 at options expiration on 7/17
07/20/2020 Closed position by selling 500 FITB shares at $18.67

The overall performance result (including commissions) was as follows:
Covered Calls Cost Basis: $9,273.35
= ($21.92 - $3.38) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,690.00
= ($3.38 * 500 shares)
(b) Dividend Income: +$135.00
= $.27 per share x 500 shares 
(c) Capital Appreciation (Fifth Third Bancorp stock sold at $18.67 per share): -$1,625.00
= ($18.67 -$21.92) * 500 shares

Total Net Profit: +$200.00
= (+$1,690.00 options income +$135.00 dividend income -$1,625.00 capital appreciation)

Absolute Return: +2.2%
= +$200.00/$9,273.35
Equivalent Annualized Return: +24.6%
= (+$200.00/$9,273.35)*(365/32 days)