Today a Covered Calls position was established in Schlumberger (ticker symbol SLB) when the Covered Calls Advisor's buy/write limit order was executed -- 500 shares were purchased at $39.25 and 3 February 25th, 2022 Call options were sold at $2.74 at the $37.00 strike price. This position (as well as all other current positions in the Covered Calls Advisor Portfolio) is shown in the right sidebar on the homepage of this blog. Given the Covered Calls Advisor's current cautious Overall Market Meter outlook, a moderately in-the-money Covered Calls position was
established -- the Delta was 75.8, which closely approximates the probability
that the Call options will be
in-the-money on the options expiration date. There is no quarterly earnings report or ex-dividend date prior to the options expiration date.
Some key numbers for this position are:
Covered Calls Cost Basis: $18,258.35
Profit if Assigned at Expiration: $241.65
Absolute Return-on-Investment: +1.3%
Annualized Return-on-Investment: +40.3%
Instead of showing the detailed calculations for the numbers highlighted above, the Covered Calls Advisor will now often present this simplified presentation of the key numbers for newly established positions. Occasionally, I will still provide the detailed calculations that you have been used to seeing, but I hope you can appreciate my need to save some of the time required in typing these posts, which is more productively used in my investing reading and research activities.
As always, I do encourage your email questions related to Covered Calls which I try to reply to expeditiously.
Regards and Godspeed,
Jeff Partlow (The Covered Calls Advisor)
