The Covered Calls Advisor Portfolio had ten positions since last month's (October 16th, 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:
- Four positions expired on the November 20th, 2020 monthly options expiration date with the following results:
- One Constellation Brands Inc. (STZ) Covered Call closed in-the-money,
so
the 100 shares were assigned (sold) at the $170.00 strike price and
achieved +2.0% absolute return in 30 days (equivalent to +24.6%
annualized return-on-investment).
- Two Intel Corp. (INTC) Covered Calls closed in-the-money,
so
the 200 shares were assigned (sold) at the $42.50 strike price and
achieved +2.7% absolute return in 24 days (equivalent to +41.2%
annualized return-on-investment).
- Three KB Home (KBH) Covered Calls closed in-the-money,
so
the 300 shares were assigned (sold) at the $35.00 strike price and
achieved +4.2% absolute return in 30 days (equivalent to +50.8%
annualized return-on-investment).
- Four Pfizer Inc. (PFE) Covered Calls closed in-the-money,
so
the 400 shares were assigned (sold) at the $34.00 strike price and
achieved +2.8% absolute return in 24 days (equivalent to +42.3%
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:
- Citigroup Inc. (C) -- Three $40.00 Covered Calls -- +1.9% absolute return in 11 days (equivalent to +63.4% annualized return-on-investment).
- IBM Corp. (IBM) -- Two $110.00 Covered Calls -- +1.6% absolute
return in 18 days (equivalent to +33.0% annualized return-on-investment).
- Johnson & Johnson (JNJ) -- Two $142.00 Covered Calls -- +0.3% absolute
return in 4 days (equivalent to +25.8% annualized return-on-investment).
- Morgan Stanley (MS) -- Two $49.00 Covered Calls -- +2.3% absolute
return in 19 days (equivalent to +43.4% annualized return-on-investment).
- Truist Financial Corporation (TFC) -- Two $40.00 Covered Calls -- +1.3% absolute
return in 8 days (equivalent to +60.1% annualized return-on-investment).
Although nine of ten positions were closed out at a profit this month, one Covered Calls position (GoHealth Inc.) closed out-of-the-money (stock price below the strike price) at the
November 20th, 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 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.
