The Covered Calls Advisor Portfolio had fourteen positions (ten Covered Calls and four Cash-Secured Puts) since last month's (August 21st, 2020) monthly options expiration date. The Covered Calls Advisor is pleased that twelve of the fourteen positions have been closed out profitably. A summary of the results to-date for each of these fourteen positions is shown on the table below.
As shown in the bottom line of the table, the weighted average absolute return-on-investment of +1.5% (equivalent to +33.7% annualized roi) of the Covered Calls Advisor Portfolio beat the S&P 500 benchmark index performance of -2.6% (equivalent to -32.7% annualized roi) for the past month by a wide margin. The two primary factors responsible for this substantial outperformance are: (1) good individual stock selection (Job #1 for us Covered Calls investors); and (2) selling options with strike prices moderately below the stock price when the position was established. These results (remaining profitable during a period when the overall market is declining) provide a good example of the relative advantage Covered Calls investing can have during Neutral and especially during more Bearish time periods.
You can reach me at partlow@cox.net if you have any questions related to this post or to anything else related to Covered Calls investing.
Best Wishes and Godspeed,
Jeff Partlow
