August 21st, 2020 Monthly Options Expiration Results

The Covered Calls Advisor Portfolio had eleven positions since last month's (July 17th, 2020) monthly options expiration date.  The Covered Calls Advisor is pleased that ten of these eleven positions have been closed out profitably.  The results of these ten positions were:

• Four positions expired on the August 21st, 2020 monthly options expiration date with the following results:

1. One Alphabet Inc. (GOOGL) $1,370.00 Cash-Secured-Put option expired since the stock price closed above the strike price on the options expiration date -- +1.5% absolute return in 29 days (equivalent to +18.7% annualized return-on-investment).
2. Two Cigna Corp. (CI) $162.50 Cash-Secured-Put options expired -- +1.6% absolute return in 22 days (equivalent to +26.3% annualized return-on-investment).
3. Two VMware Inc. (VMW) $137.00 Cash-Secured-Puts expired -- +1.3% absolute return in 11 days (equivalent to +41.5% annualized return-on-investment).
4. One D.R. Horton Inc. (DHI) Covered Calls position closed in-the-money, so the 200 shares were assigned (sold) at the $65.00 strike price and achieved +1.4% absolute return in 15 days (equivalent to +34.6% annualized return-on-investment).

• Five Covered Calls positions using the Dividend Capture strategy were assigned early (the day prior to the ex-dividend date in each case) with the following results:

1. Citigroup Inc. (C) -- Four $48.00 Calls -- +0.5% absolute return in 1 day (equivalent to +176.4% annualized return-on-investment).
2. CVS Health Corp. (CVS) -- Three $60.00 Calls -- +1.5% absolute return in 14 days (equivalent to +39.7% annualized return-on-investment).
   
3. IBM Corp. (IBM) -- Two $120.00 Calls -- +0.8% absolute return in 10 days (equivalent to +30.7% annualized return-on-investment).
   
4. Intel Corp. (INTC) -- Two $46.00 Calls -- +0.9% absolute return in 8 days (equivalent to +40.0% annualized return-on-investment).
   
5. Morgan Stanley (MS) -- Four $48.00 Calls -- +0.7% absolute return in 7 days (equivalent to +35.0% annualized return-on-investment).

• One Covered Calls position in Phillips 66 (PSX) at the $62.50 strike price was out-of-the-money on the August 21st, 2020 options expiration date and the position was closed out during the 8/21/2020 trading day.  The results were +0.9% absolute return in 9 days (equivalent to +36.2% annualized return-on-investment).

Although ten of eleven positions were closed out at a profit this month, one Covered Calls position (Micron Technology Inc.) closed out-of-the-money (stock price below the strike price) at the August 21st, 2020 options expiration, so these shares now remain in the Covered Calls Advisor Portfolio (as shown in the right sidebar).  A decision will be made soon to either sell the Micron shares or continue with this Covered Calls position by selling Call options against the shares currently held.  As always, the transactions and return-on-investment results for this position will be posted on this blog site on the same day the transactions occur.