Closed Out the Covered Calls Position in JPMorgan Chase & Co. Inc.

At last Friday's options expiration date, two April 8th, 2022 Covered Calls in JPMorgan Chase & Co. Inc. (JPM) expired with the stock price below the $135.00 strike price.  At market open this morning, I decided to close out the position by selling the 200 JPM shares at $133.12.  The primary motivation for selling out of this position was that JPM's Q1 2022 earnings will be reported before market open this Wednesday and I prefer to avoid the volatility that accompanies quarterly earnings reports for companies I am invested in. 

As detailed below, the return-on-investment results for this JPMorgan Chase & Co. Inc. position is: +0.1% absolute return in 14 days (equivalent to a +3.0% annualized return-on-investment).  This return includes JPM's $1.00 ex-dividend of April 5th.

 

JPMorgan Chase & Co. (JPM) -- Covered Calls Position Closed

The simultaneous buy/write transaction was:
3/28/2022 Bought 200 JPM shares @ $138.60
3/28/2021 Sold 2 JPM April 8th, 2022 $135.00 Call options @ $4.64 per share
4/05/2022 Quarterly ex-dividend at $1.00 per share
4/08/2022 Two JPM $135.00 Call options expired out-of-the-money since JPM stock closed below the strike price at $133.49. Therefore, 200 JPM shares remain in the Covered Calls Advisor Portfolio.
4/11/2022 JPM position closed out by selling 200 shares at the market open today at $133.12 per share.

The overall performance results (including commissions) for this JPM Covered Calls position was as follows:
Stock Purchase Cost: $26,793.34
= ($138.60 - $4.64) *200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$926.66
= ($4.64 *200 shares) - $1.34 commission
(b) Dividend Income (Ex-dividend captured on April 5th, 2022): +$200.00
= ($1.00 dividend per share x 200 shares)

(c) Capital Appreciation (JPM share sold on 4/11/2022 at $133.12 per share): -$1,096.00
+($133.12 - $138.60) * 200 shares

 

Total Net Profit (JPM Covered Calls position closed out): +$30.66

= (+$926.66 options income +$200.00 dividend income -$1,096.00 capital appreciation)
 

Absolute Return-on-Investment: +0.1%

= +$30.66/$26,793.34

Annualized Return-on-Investment: +3.0%

= (+$30.66/$26,793.34) * (365/14 days)