The return-on-investment results achieved were as follows:
- One Covered Calls position expired in-the-money yesterday (on the June 18th, 2021 monthly options expiration date), so the options expired and the stocks were sold in Applied Materials Inc. (AMAT) with this result -- +1.7%
absolute return in 29 days (equivalent to +21.0% annualized
return-on-investment).
- One 100% Cash-Secured Put position expired out-of-the-money (stock price above the strike price) yesterday (on the June 18th, 2021 monthly options expiration date), so the Put option expired and
the cash received when this Put was originally sold was retained as profit in the Covered Calls Advisor Portfolio. The return-on-investment
results were: Regeneron Pharmaceuticals Inc. (REGN) -- +1.4% absolute return in 25 days (equivalent to +21.0% annualized return-on-investment).
- Four Covered Calls positions were closed by early assignment on the last business day prior to their ex-dividend dates and the results of these positions were:
- Bank of America Corp. (BAC) -- +1.1% absolute return in 15 days (equivalent to +27.1% annualized return-on-investment).
- Devon Energy (DVN) -- +2.6% absolute return in 14 days (equivalent to +66.8% annualized return-on-investment).
- HP Inc. (HPQ) -- +0.9% absolute return in 11 days (equivalent to +31.1% annualized return-on-investment).
- Qualcomm Inc. (QCOM) -- +1.4% absolute return in 16 days (equivalent to +31.1% annualized return-on-investment).
- One Covered Calls position in KBHome Inc. (KBH) was closed out early based on the decision by the Covered Calls Advisor and with the following result: -3.2% absolute return in 24 days (equivalent to -48.3% annualized return-on-investment).
- Five Covered Call positions (Alibaba Group Holdings Ltd., Hologic Inc., LyondellBasel Industries Inc., ViacomCBS, and Winnebago Industries Inc.) closed out-of-the-money. These shares now remain in the Covered Calls Advisor Portfolio (shown in the right sidebar of this blog) and decisions will be made early next week to either sell these shares or to continue with the Covered Calls positions by selling future Call options against the shares currently held.
During the past year (last 12 months) 124 of 125 positions were closed out at a profit. The average annualized return-on-investment was +40.3% and their average holding period was 19.9 days.
Note: these results have been exceptional because of the persistent bull market during the past year, so these results should certainly not be considered as the norm for Covered Calls investing. A 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 and to outperform the S&P 500 benchmark by approximately 3% to 5% on an annualized return-on-investment basis.
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
