Closed Positions in LyondellBasel Industries N.V. and Ralph Lauren Corporation

At last Friday's (July 16th) options expiration, the Covered Calls positions in LyondellBasel Industries N.V. (ticker LYB) and Ralph Lauren Corporation (RL) expired with the stock price below their respective strike prices, so their shares remained in the Covered Calls Advisor Portfolio. This morning, the Covered Calls Advisor closed out both positions at a loss as detailed below.

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

The buy/write transaction was:
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

Total Net Profit: -$410.76

= (+$1,635.99 options income +$206.25 dividend income - $2,253.00 capital appreciation)
 

Absolute Return: -1.3%

= -$410.76/$32,462.01

Annualized Return-on-Investment: -16.5%

= (-$410.76/$32,462.01)*(365/28 days)