May 21st, 2021 Monthly Options Expiration Results

The Covered Calls Advisor Portfolio had nine positions since last month's (April 16th, 2021) monthly options expiration date.  During this past month, the Covered Calls Advisor Portfolio closed out eight of these nine positions profitably.

The return-on-investment results achieved were as follows:   

• Two Covered Calls positions expired in-the-money yesterday (on the May 21st, 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:

1. Diamondback Energy Inc. (FANG) -- +1.7% absolute return in 15 days (equivalent to +41.8% annualized return-on-investment).
2. Truist Financial Corporation (TFC) -- +1.7% absolute return in 18 days (equivalent to +34.5% annualized return-on-investment).

 

• One 100% Cash-Secured Puts position expired out-of-the-money (stock price above the strike price) yesterday (on the May 21st, 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:

1. Uber Technologies Inc. (UBER) -- +1.2% absolute return in 16 days (equivalent to +28.4% annualized return-on-investment).

 

• Three Covered Calls positions expired in-the-money on their weekly options expiration dates.       The results of these three positions were:
  

1. Alibaba Group Holdings Ltd. (BABA) -- +1.3% absolute return in 11 days (equivalent to +42.7% annualized return-on-investment).
2. Applied Materials Inc. (AMAT) -- +1.5% absolute return in 12 days (equivalent to +45.0% annualized return-on-investment).
3. EOG Resources Inc. (EOG) -- +2.4% absolute return in 23 days (equivalent to +37.5% annualized return-on-investment).

• Two Covered Calls were closed out prior to their expiration dates (sold-to-close the stocks and simultaneously bought-to-close the Call options) based on decisions by the Covered Calls Advisor and with the following results:

1. Applied Materials Inc. (AMAT) -- +2.0% absolute return in 8 days (equivalent to +90.9% annualized return-on-investment).
   
2. Oscar Health Inc. (OSCR) -- +3.6% absolute return in 20 days (equivalent to +65.7% annualized return-on-investment).

 

One of the nine positions this month (Covered Calls in KB Home Inc.) expired out-of-the-money on the May 21st 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) all 131 positions were closed out at a profit.  The average annualized return-on-investment was +42.4% and their average holding period was 20.4 days.

Warning: these results have been exceptional because of the persistent bull market during the past year, so the results of the Covered Calls Advisor Portfolio 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 during more normal market conditions is to be profitable on two-thirds (67%) or more of positions.  

As shown in the right sidebar, there are currently eight 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
Covered Calls Advisor
partlow@cox.net