The return-on-investment results were as follows:
- Six Covered Calls positions expired in-the-money yesterday (on the April 19th, 2021 monthly options expiration date), so the Call options expired and the stocks were sold at their strike price. The return-on-investment results were as follows:
- Alibaba Group Holdings Ltd. (BABA) -- +3.2% absolute return in 61 days (equivalent to +19.2% annualized return-on-investment).
- BorgWarner Inc. (BWA) -- +1.5% absolute return in 10 days (equivalent to +54.3% annualized return-on-investment).
- Comcast Corporation (CMCSA) -- +1.1% absolute return in 17 days (equivalent to +22.6% annualized return-on-investment).
- Qualcomm Inc. (QCOM) -- +4.0% absolute return in 26 days (equivalent to +55.9% annualized return-on-investment).
- Quest Diagnostics Inc. (DGX) -- +1.6%
absolute return in 18 days (equivalent to +33.1% annualized
return-on-investment); and
- RIO Tinto PLC (RIO) -- +1.7%
absolute return in 25 days (equivalent to +24.9% annualized
return-on-investment).
- Two 100% Cash-Secured Puts positions expired out-of-the-money (stock price above the strike price) yesterday (on the April 19th, 2021 monthly options expiration date), so the Put options expired and the cash received when these Puts were originally sold was retained as profit in the Covered Calls Advisor Portfolio. The return-on-investment results were as follows:
- Herbalife Nutrition Ltd. (HLF) -- +1.5% absolute return in 18 days (equivalent to +31.2% annualized return-on-investment).
- Regeneron Pharmaceuticals Inc. (REGN) -- +0.7% absolute return in 12 days (equivalent to +20.1% annualized return-on-investment).
- Two Covered Calls positions expired in-the-money on their weekly options expiration dates. One Covered Call position in the S&P 500 ETF (SPY) expired in-the-money on its quarterly options expiration date). The results of these three positions were:
- Financial Select Sector SPDR Fund (XLF) -- +1.1% absolute return in 17 days (equivalent to +23.0% annualized return-on-investment).
- iShares MSCI Emerging Markets ETF (EEM) -- +0.5% absolute return in 8 days (equivalent to +23.7% annualized return-on-investment).
- SPDR S&P 500 ETF (SPY) -- +0.7% absolute return in 17 days (equivalent to +15.3% annualized return-on-investment).
- Two Covered Calls were closed on the day prior to the ex-dividend date by Early Assignment. The stocks were assigned (i.e. sold) at their strike prices with the following results:
- Abbvie Inc. (ABBV) -- +0.8%
absolute return in 8 days (equivalent to +34.5% annualized
return-on-investment).
- Bristol-Myers Squibb Company (BMY) -- +1.2% absolute return in 12 days (equivalent to +36.4% annualized return-on-investment).
One of the fourteen positions this month (Covered Calls in Oscar Health Inc.) expired out-of-the-money (stock price was $24.44 and strike price was $25.00) on the April 19th expiration date, so the 300 shares now remain in the Covered Calls Advisor Portfolio. A decision will be made early next week to either sell these shares or to continue with the Covered Calls position by selling three future Call options against the shares currently held.
During the past year (last 12 months) 125 of 127 positions have been closed out profitably. Only one position was closed out at a loss and one position in Oscar Health currently remains open in the Covered Calls Advisor Portfolio. Warning: these results have been exceptional and are certainly not to be considered as the norm for Covered Calls investing. A more reasonable expectation for a well-informed and disciplined Covered Calls investment portfolio is to be profitable on two-thirds (67%) or more of positions.
As shown in the right sidebar, there are currently two open positions in
the Covered Calls Advisor Portfolio. All future transactions and
return-on-investment results for these positions will be posted on
this blog site on the same day the transactions occur. As always, I welcome receiving your emails whenever you have any comments or questions related to this post or anything related to Covered Calls investing.
Best Wishes,
Jeff
partlow@cox.net
