The Covered Calls Advisor Portfolio had a Covered Calls position in D.R. Horton Inc. (ticker DHI) with a December 11th, 2020 options expiration. This position included 400 shares of DHI stock and 4 short Call options at the $70.00 strike price. DHI closed slightly out-of-the-money at $69.91 at market close on Friday, so the 4 Calls expired and the Covered Calls Advisor Portfolio now retains the 400 shares of stock. It is likely that the 400 shares will be sold early Monday and the detailed transactions and return-on-investment results for this position will be detailed in a blog post when that occurs.
The Covered Calls Advisor wanted to retain a position in D.H. Horton going forward. Since the DHI stock price was close to the strike price on Friday, there was considerable uncertainty whether or not the Covered Calls position would be assigned at Friday's options expiration at the market close. So, it was decided to established a new one-week position in D.R. Horton (see prior post today detailing the DHI Cash-Secured Puts position). The Covered Calls Advisor wanted to maintain a similar sized position going forward in D.R. Horton -- so both this new Cash-Secured Puts position and the just expired Covered Calls position were for 400 shares of stock.
