iShares China Large-Cap ETF (FXI) -- Continuation of Covered Calls Position
The original Buy/Write transaction was as follows:
2/18/2022 Bought 600 shares of iShares China Large-Cap ETF shares @ $36.69 per share
2/18/2022 Sold 6 FXI March 4th, 2022 $35.00 Call options @ $2.02 per share.
3/04/2022 6 FXI Calls expired out-of-the-money so the 600 shares remained in the Covered Calls Advisor Portfolio.
3/22/2022 Continued this iShares China Large-Cap ETF Covered Calls position by selling 6 FXI April 1st, 2022 $35.00 Call options @ $.42 per share. The FXI share price was $33.415 when these Calls were sold.
4/01/2022 6 FXI Calls expired out-of-the-money so the 600 shares remained in the Covered Calls Advisor Portfolio.
04/04/2022 Continued this iShares China Large-Cap ETF Covered Calls position by selling 6 FXI April 14th, 2022 $35.00 Call options @ $.38 per share. The FXI share price was $34.06 when these Calls were sold and the Implied Volatility of these Calls was 30.7.
Two possible overall performance results (including commissions) for this iShares China Large-Cap ETF Covered Calls position are as follows:
Stock Purchase Cost: $20,806.02
= ($36.69 - $2.02) * 600 shares + $4.02 commission
Net Profit:
(a) Options Income: +$1,679.94
= ($2.02 + $.42 + $.38) * 600 shares - $12.06 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 600 iShares China Large-Cap ETF shares price unchanged at $34.06 at the 4/14/2022 options expiration): -$1,578.00
+($34.06 - $36.69) * 600 shares; OR
(c) Capital Appreciation (If 600 iShares China Large-Cap ETF shares assigned at $35.00 strike price at expiration): -$1,014.00
+($35.00 - $36.69) * 600 shares
1. Total Net Profit (If 600 iShares China Large-Cap ETF shares price unchanged at $34.06 at the April 14th, 2022 options expiration): +101.94
= (+$1,679.94 options income +$0.00 dividend income -$1,578.00 capital appreciation); OR
2. Total Net Profit (If 600 iShares China Large-Cap ETF shares assigned at $35.00 strike price at expiration): +$665.94
= (+$1,679.94 options income +$0.00 dividend income -$1,014.00 capital appreciation)
1. Absolute Return-on-Investment (If 600 iShares China Large-Cap ETF shares price unchanged at $34.06 at the April 14th, 2022 options expiration): +0.5%
= +$101.94/$20,806.02
Annualized Return-on-Investment: +3.1%
= (+$101.94/$20,806.02) * (365/57 days); OR
2. Absolute Return-on-Investment: (If 600 iShares China Large-Cap ETF shares assigned at $35.00 strike price at expiration) +3.2%
= +$665.94/$20,806.02
Annualized Return-on-Investment: +20.5%
= (+$665.94/$20,806.02) * (365/57 days)
