Closed Position in Goldman Sachs Group Inc.

On August 18th, 2020, a Covered Call position was initiated in Goldman Sachs Group Inc. (ticker symbol GS) at the Sept 4th, 2020 $197.50 strike price.  When Goldman Sachs shares had increased beyond $207.00 per share on August 28th, a decision was made to roll-up-and-out the short Call to the $205.00 strike price at the September 18th expiration date. Subsequently, Goldman Sachs stock declined and on the September 18th, 2020 options expiration date, the Covered Call position in Goldman Sachs expired with the stock price at $194.86, well below the $205.00 strike price. This morning, when the price of Goldman Sachs stock moved higher along with the overall stock market, the Covered Calls Advisor sold the 100 shares at $199.57 to close out this Goldman Sachs position in the Covered Calls Advisor Portfolio. 

As detailed below, the return-on-investment result for this Goldman Sachs Group Inc. Covered Call position was +1.1% absolute return in 41 days (equivalent to a +9.8% annualized return-on-investment).  Thus, this Covered Calls position that was at a small net loss as of the September 18th options expiration date was repaired so that an overall small profit was achieved when it was closed out today.

Goldman Sachs Group Inc. (GS) -- Covered Call Position Closed Out

The buy/write transaction was as follows:
08/18/2020 Bought 100 shares of Goldman Sachs stock @ $201.36 per share 
08/18/2020 Sold 1 Sept 4th, 2020 $197.50 Call option @ $6.68 per share
Note: The Implied Volatility of the Call option was 24.8.
08/28/2020 Bought-to-Close 1 GS 9/04/2020 $197.50 Call option @ $11.68 per share
08/28/2020  Sold-to-Open 1 GS 9/18/2020 $205.00 Call option @ $7.73 per share
Note: this was a simultaneous roll-up-and-out transaction
08/31/2020 Quarterly ex-dividend of $1.25 per share
09/18/2020 GS Call option expired with stock price at $194.86, well below the $205.00 strike price. So the 100 GS shares were retained in the Covered Calls Advisor Portfolio.
09/28/2020 Sold 100 shares of GS stock at $199.57 per share.

The overall performance result (including commissions) for this Goldman Sachs Covered Call position was as follows:
Covered Call Cost Basis: $19,468.67
= ($201.36 - $6.68) * 100 shares + $0.67 commission

Net Profit Components:
(a) Options Income: +$268.31
= ($6.68 - $11.68 + $7.73) * 100 shares - $4.69 commissions
(b) Dividend Income: +$125.00
= ($1.25 dividend per share x 100 shares)

(c) Capital Appreciation: -$179.00
+($199.57 - $201.36) * 100 shares

Total Net Profit: +$214.31

= (+$268.31 options income +$125.00 dividend income -$179.00 capital appreciation)

Absolute Return: +1.1%

= +$214.31/$19,468.67

Annualized Return: +9.8%

= (+214.31/$19,468.67)*(365/41 days)