Monthly Options Expiration Results through November 19th, 2021

The Covered Calls Advisor Portfolio had twelve positions since last month's (October 15th, 2021) monthly options expiration date.  During this past month, the Covered Calls Advisor Portfolio closed out ten of these twelve positions.   Nine positions were closed out at a profit, one was closed at a loss, and two were Covered Calls positions that expired out-of-the-money on yesterday's options expiration date.  A summary of results (for all twelve positions) since the last monthly options expiration date on Oct. 15th, 2021 through yesterday's monthly options expiration date of November 19th are summarized below:

• Four Covered Calls positions expired in-the-money (stock price above the strike price) on the November 19th monthly options expiration date, so the options expired and the stocks were sold at their respective strike prices with the following results: 

1. Abercrombie & Fitch Co. (ANF) -- +4.5% absolute return in 31 days (equivalent to +53.1% annualized return-on-investment).  
2. Alcoa Corporation (AA) -- +3.8% absolute return in 22 days (equivalent to +62.8% annualized return-on-investment). 
3. Cleveland-Cliffs Inc. (CLF) -- +5.0% absolute return in 32 days (equivalent to +57.1% annualized return-on-investment).  
4. Discovery Inc. (DISCA) -- +2.2% absolute return in 15 days (equivalent to +53.0% annualized return-on-investment).

 

• One Cash-Secured Puts position in Bristol-Myers Squibb Co. expired out-of-the-money (stock price above the strike price) on the Nov. 19th monthly options expiration date with the following result -- +1.3% absolute return in 24 days (equivalent to +19.4% annualized return-on-investment). 
  

 

• Three 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:
  

1. Cardinal Health Corp. (CI) Covered Calls -- -1.9% absolute return in 27 days (equivalent to -25.3% annualized return-on-investment).
2. Facebook Inc. (FB) Covered Calls -- +2.6% absolute return in 10 days (equivalent to +94.2% annualized return-on-investment).
3. Signet Jewelers Ltd. (SIG) Covered Calls -- +4.6% absolute return in 28 days (equivalent to +59.6% 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:

1. Citigroup Inc. (C) -- +0.8% absolute return in 7 days (equivalent to +41.1% annualized return-on-investment).
2. Capital One Financial (COF) -- +1.3% absolute return in 14 days (equivalent to +32.6% annualized return-on-investment).

 

• Two Covered Calls positions expired out-of-the-money on yesterday's November 19th, 2021 options expiration date.  Two hundred shares of Diamondback Energy Inc. and and six hundred shares of Goodyear Tire & Rubber Co. now remain in the Covered Calls Advisor Portfolio (shown in the right sidebar of this blog).  Decisions will be made soon to either sell these shares or to continue with their Covered Calls positions by selling future Call options against the shares currently held.

 

During the past year (last 12 months) 121 of 128 positions (94.5%) 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 +38.5% during the past year and the average holding period of the 128 positions was 22.3 days.  In comparison, the benchmark S&P 500 index returned +32.1% during the same prior one-year period.

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 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).  

My current sentiment regarding each of the 11 sectors is:         

•  Bullish -- Consumer Discretionary, Financials, Healthcare, and Information Technology; 
•  Neutral -- Communication Services, Energy, and Materials; and 
•  Bearish -- Consumer Staples, Industrials, Real Estate, and Utilities    
  

As shown in the right sidebar, there are currently six 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