Monthly Options Expiration Results through December 17th, 2021

The Covered Calls Advisor Portfolio had fourteen positions since last month's (November 19th, 2021) monthly options expiration date.  During this past month, the Covered Calls Advisor Portfolio closed out eleven of these fourteen positions.   All eleven positions were closed out at a profit and three were Covered Calls positions that expired out-of-the-money on yesterday's options expiration date.  A summary of results (for all fourteen positions) since the last monthly options expiration date on Nov. 19th, 2021 through yesterday's monthly options expiration date of December 17th are summarized below:

• Eight Covered Calls positions expired in-the-money (stock price above the strike price) on the December 17th monthly options expiration date, so the options expired and the stocks were sold at their respective strike prices with the following results: 

1. Alcoa Corporation (AA) -- +2.6% absolute return in 22 days (equivalent to +43.5% annualized return-on-investment).  
2. Boeing Company (BA) -- +2.9% absolute return in 22 days (equivalent to +47.8% annualized return-on-investment). 
3. Cigna Corporation (CI) -- +1.7% absolute return in 25 days (equivalent to +24.2% annualized return-on-investment).  
4. Cleveland-Cliffs Inc. (CLF) -- +2.4% absolute return in 17 days (equivalent to +51.7% annualized return-on-investment).
5. Discover Financial Services (DFS) -- +2.6% absolute return in 32 days (equivalent to +29.2% annualized return-on-investment).  
6. Pioneer Natural Resources Company (PXD) -- +3.5% absolute return in 38 days (equivalent to +34.0% annualized return-on-investment). 
7. Uber Technologies Inc. (UBER) -- +1.2% absolute return in 16 days (equivalent to +28.4% annualized return-on-investment).  
8. Zimmer Integrated Shipping Services Ltd. (ZIM) -- +7.7% absolute return in 17 days (equivalent to +165.6% annualized return-on-investment).

 

• Three Covered Calls 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. Diamondback Energy Inc. (FANG) -- +1.8% absolute return in 20 days (equivalent to +33.3% annualized return-on-investment).
2. Goodyear Tire & Rubber Co. (GT) -- +2.3% absolute return in 13 days (equivalent to +63.9% annualized return-on-investment).
3. EOG Resources Inc. (EOG) -- +2.0% absolute return in 12 days (equivalent to +62.1% annualized return-on-investment). 
   

 

• Three Covered Calls positions expired out-of-the-money on yesterday's November 19th, 2021 options expiration date.  Five hundred shares of American Eagle Outfitters Inc., five hundred shares of Bank of America Corp., and two hundred shares of Signet Jewelers Ltd. 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) 128 of 135 positions (94.8%) 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 +39.6% during the past year and the average holding period of the 135 positions was 22.2 days.  In comparison, the benchmark S&P 500 index (SPY) returned +27.6% during the same prior one-year period.  Cautionary note to readers: This twelve percentage points (39.6% minus 27.6%) outperformance during the past year by the Covered Calls Advisor Portfolio exceeds that which can normally be expected using the Covered Calls investing strategy.  As indicated in this post made earlier this year on this blog site (Link) -- by exploiting our Covered Calls investing "edges", we can expect to achieve (over a period of several years) an average annualized-return-on-investment above the S&P 500 benchmark index of approximately 3 to 5 percentage points annually.

As shown in the right sidebar, there are currently seven 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.  

Covered Calls investing has been very good to me, and therefore also for my family, over the past four decades.  So the information presented in this Covered Calls Advisor blog is available freely to anyone interested in learning to become a more effective Covered Calls investor.  As always, I also welcome your emails whenever you have any comments or questions related to anything related to Covered Calls investing.

Best Wishes and Happy Holidays,
Jeff Partlow
Covered Calls Advisor
partlow@cox.net