1. LyondellBasell Industries N.V. (LYB) -- Covered Calls Position Closed
The buy/write transaction was as follows:
05/28/2021 Bought 200 shares of LyondellBasell stock @ $112.54 per share
05/28/2021 Sold 2 LyondellBasell June 18th, 2021 $110.00 Call options @ $3.82 per share
Note: the Implied Volatility of the Call options was 22.0.
06/04/2021 Upcoming ex-dividend of $1.13 per share
06/18/2021 Two LYB 6/18/2021 $110.00 Call options expired out-of-the-money and 200 long shares of LYB stock remain in the Covered Calls Advisor Portfolio
Note: the LYB stock price was $100.35 on the options expiration date.
07/01/2021 Sold 2 LYB 7/16/2021 $105.00 Call options @ $1.80 per share when the stock was trading at $104.01 to continue this Covered Calls position.
07/16/2021 LYB Covered Calls expired out-of-the-money, so 200 shares of
LYB shares retained in the Covered Calls Advisor Portfolio.
07/20/2021 Closed out LYB Covered Calls position by selling 200 LYB shares @ $94.42 per share.
The overall performance results (including commissions) was as follows:
Covered Calls Cost Basis: $21,745.34
= ($112.54 - $3.82) * 200 shares + $1.34 commission
Net Profit Components:
(a) Options Income: +$1,121.32
= ($3.82 + $1.80) * 200 shares - $2.68 commission
(b) Dividend Income: +$226.00
= $1.13 dividend per share x 200 shares
(c) Capital Appreciation: -$3,624.00
= ($94.42 - $112.54) * 200 shares
Total Net Profit: -$2,276.68
= (+$1,121.32 options income +$226.00 dividend income -$3,624.00 capital appreciation)
Absolute Return: -10.5%
= -$2,276.68/$21,745.34
Equivalent Annualized Return: -72.1%
= (-$2,276.68/$21,745.34) * (365/53 days)
2. Ralph Lauren Corporation (RL) -- Covered Calls Position Closed
06/22/2021 Bought 300 Ralph Lauren shares @ $113.66
06/22/2021 Sold 3 Ralph Lauren 07/16/2021 $110.00 Call options @ $5.46. As required by the Covered Calls Advisor for positions in individual stocks, the Implied Volatility of these Calls at 27.8 exceeded the current S&P 500 Volatility Index (VIX) of 17.2.
06/24/2021 Upcoming quarterly ex-dividend of $.6875 per share
07/16/2021 Ralph Lauren Covered Calls position expired out-of-the-money, so 300 shares of LYB shares retained in the Covered Calls Advisor Portfolio.
07/20/2021 Closed out RL Covered Calls position by selling 300 Ralph Lauren Corp. shares @ $106.15 per share.
The overall performance results (including commissions) was as follows:
Covered Calls Cost Basis: $32,462.01
= ($113.66 - $5.46) *300 shares + $2.01 commission
Net Profit:
(a) Options Income: +$1,635.99
= ($5.46 *300 shares) - $2.01 commission
(b) Dividend Income: +$206.25
= ($.6875 dividend per share x 300 shares)
(c) Capital Appreciation: -$2,253.00
+($106.15-$113.66) * 300 shares
