- Four Covered Calls positions expired in-the-money (stock price above the strike price) on the October 15th monthly options expiration date, so the options expired and the stocks were sold at their respective strike prices with the following results:
- Abercrombie & Fitch Co. (ANF) -- +1.3% absolute return in 10 days (equivalent to +48.6% annualized return-on-investment).
- Best Buy Inc. (BBY) -- -2.4% absolute return in 43 days (equivalent to -20.2% annualized return-on-investment).
- iShares China Large-Cap ETF (FXI) -- +1.6% absolute return in 31 days (equivalent to +18.4% annualized return-on-investment).
- Polaris Industries Inc. (PII) -- +4.9% absolute return in 50 days (equivalent to +35.7% annualized return-on-investment).
- One Cash-Secured Puts position in Cleveland-Cliffs Inc. expired out-of-the-money (stock price above the strike price) on the October 15th monthly
options expiration date with the following
result -- +8.6% absolute return in 26 days (equivalent to +120.7% annualized return-on-investment).
- Five
Covered Calls positions expired in-the-money on their Weekly
options expiration dates that occurred after the prior Monthly options expiration date (on September 17th) but prior to yesterday's (October 15th, 2021) Monthly options expiration date. So, their options expired
and their stocks were sold at their respective strike prices with the following results:
- Boeing Co. (BA) -- +3.5% absolute return in 35 days (equivalent to +36.9% annualized return-on-investment).
- Micron Technology Inc. (MU) -- +1.3% absolute return in 15 days (equivalent to +32.8% annualized return-on-investment).
- Nucor Corporation (NUE) -- +0.9% absolute return in 10 days (equivalent to +32.1% annualized return-on-investment).
- Seagate Technology Holdings PLC (STX) -- +2.2% absolute return in 18 days (equivalent to +45.3% annualized return-on-investment).
- Wynn Resorts Ltd. (WYNN) -- +1.9% absolute return in 11 days (equivalent to +64.6% annualized return-on-investment).
- Four positions were closed out prior to their options expiration dates based on decisions made by the Covered Calls Advisor to unwind these positions prior to their options expiration dates with the following results:
- Cigna Corp. (CI) Cash-Secured Puts -- +1.4% absolute return in 2 days (equivalent to +249.4% annualized return-on-investment).
- JPMorgan Chase & Co. (JPM) Covered Calls -- +0.9% absolute return in 5 days (equivalent to +66.5% annualized return-on-investment).
- Energy Select Sector SPDR ETF (XLE) Covered Calls -- +0.3% absolute return in 5 days (equivalent to +21.7% annualized return-on-investment).
- Tyson Foods Inc. (TSN) Covered Calls -- -0.9% absolute return in 27 days (equivalent to -12.7% annualized return-on-investment).
- Two Covered Calls positions were closed by early assignment on the day prior to their ex-dividend dates with the following results:
- Fifth Third Bank (FITB) -- +1.1% absolute return in 9 days (equivalent to +45.6% annualized return-on-investment).
- Pioneer Natural Resources Co. (PXD) -- +2.3% absolute return in 7 days (equivalent to +117.7% annualized return-on-investment).
- One Covered Calls position in Cardinal Health Inc. expired out-of-the-money on the October 15th, 2021 options expiration date, so the 300 shares now remain in the Covered Calls Advisor Portfolio (shown in the right sidebar of this blog) and decisions will be made soon to either sell these shares or to continue with this Covered Calls positions by selling future Call options against the shares currently held.
During the past year
(last 12 months) 122 of 128 positions (95.3%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit. The Covered Calls Advisor's objective is that at least two-thirds (66.7%) of positions be closed profitably. The bullish market during the past year aided the CCAP to exceed this objective by a wide margin. The
CCAP average annualized return-on-investment was +38.3% during the past year and the average
holding period of the 128 positions was 21.8 days. In comparison, the benchmark S&P 500 index returned +28.3% during the same prior one-year period.
Given that only the first week of 3rd quarter earnings reports is now completed and most of the companies reporting were in the Financials sector, the Covered Calls Advisor will continue to monitor companies' upcoming earnings reports (including their future guidance) for the next few weeks. Special caution will be undertaken to establish new positions only after earnings reports in companies and/or other similar companies in their industries have been reported.
My preference is to identify opportunities to utilize my Dividend Capture Strategy (with ex-dividend dates prior to the options expiration dates) for relatively low-growth dividend-paying companies within these lower-growth Sectors -- Consumer Staples, Energy, Financials, Industrials, Materials, Real Estate, and Utilities. Higher growth companies in Sectors with fewer dividend-paying companies includes the Communication Services, Consumer Discretionary, Healthcare, and Information Technology Sectors. There is a much greater likelihood that Covered Calls or Cash-Secured Puts positions in these higher-growth Sectors will be established without utilizing the Dividend Capture Strategy (i.e. without ex-dividend dates prior to their options expiration dates).
As shown in the right sidebar, there are currently only two open positions in the Covered Calls Advisor Portfolio. Future transactions and return-on-investment results for these positions and the details of all other newly established positions will be posted on this blog site on the same day the transactions occur.
This Covered Calls Advisor blog is a free service available to anyone interested in becoming a more effective Covered Calls investor. As always, I
welcome your emails whenever you have any comments or
questions related to this post or anything related to Covered Calls
investing.
Best Wishes and Godspeed,
Jeff Partlow
Covered Calls Advisor
partlow@cox.net
