October 16th, 2020 Monthly Options Expiration Results

The Covered Calls Advisor Portfolio had ten positions since last month's (September 18th, 2020) monthly options expiration date.  The Covered Calls Advisor is pleased that nine of these ten positions have been closed out profitably.  The results of these ten positions were:

• Three positions expired on the October 16th, 2020 monthly options expiration date with the following results:

1. Two Cigna Corp. (CI) $155.00 Cash-Secured-Put options expired -- +1.0% absolute return in 15 days (equivalent to +24.3% annualized return-on-investment).
2. Four KB Home (KBH) $34.00 Covered Calls -- +3.2% absolute return in 22 days (equivalent to +52.3% annualized return-on-investment).
3. Three Micron Technology Inc. (MU) $45.00 Covered Calls -- +3.3% absolute return in 22 days (equivalent to +54.1% annualized return-on-investment).

• Four 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. General Dynamics Corp. (GD) -- One $135.00 Covered Call -- +1.4% absolute return in 8 days (equivalent to +65.1% annualized return-on-investment).
2. JPMorgan Chase & Co. (JPM) -- Two $90.00 Covered Calls -- +1.6% absolute return in 12 days (equivalent to +48.1% annualized return-on-investment).
   
3. Lennar Corp. (LEN) -- One $75.00 Covered Call -- +1.1% absolute return in 9 days (equivalent to +42.6% annualized return-on-investment).
   
4. Lincoln National Corp. (LNC) -- Three $27.50 Calls -- +2.3% absolute return in 14 days (equivalent to +60.1% annualized return-on-investment).

• One Covered Call position in Medtronic PLC (MDT) were in-the-money at the October 2nd expiration date so the options expired and the shares sold at the $100.00 strike price.  There was a +1.2% absolute return in 12 days (equivalent to +36.7% annualized return-on-investment).

• One Covered Call position in Goldman Sachs Group Inc. (GS) at the $90.00 strike price was out-of-the-money on the September 18th, 2020 options expiration date and the position was closed out during the September 28th, 2020 trading day.  The result was a +1.1% absolute return in 41 days (equivalent to +9.8% annualized return-on-investment).

Although nine of ten positions were closed out at a profit this month, four Covered Calls in GoHealth Inc. closed out-of-the-money (stock price below the strike price) at the October 16th, 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 GoHealth shares or continue with this Covered Calls position by selling November Call options against the 400 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.