As detailed below, the return-on-investment results for this Ally Financial Inc. position is: +3.8% absolute return in 34 days (equivalent to a +40.6% annualized return-on-investment). This return includes Ally's $.30 per share ex-dividend of April 29th, 2022.
Ally Financial Inc. (ALLY) -- Closed Out this Covered Calls Position
The transactions were:
4/22/2022 Bought 500 Ally Financial shares @ $42.07
4/22/2022 Sold 5 ALLY 5/20/2022 $40.00 Call options @ $2.81
4/29/2022 Quarterly ex-dividend of $.30 per share
5/20/2022 Call options expired out-of-the-money. The stock price was $38.67 at options expiration last Friday.
05/23/2022 Sold 5 ALLY 6/17/2022 $40.00 Call options @ $1.70 when the stock price was $39.57.
05/26/2022 Closed out this Ally Financial Covered Calls position with a simultaneous unwind transaction by selling-to-close the 500 ALLY shares @ $41.43 and buying-to-close 5 ALLY 6/17/2022 $40.00 Calls @ $2.67 per share.
The overall performance results (including commissions) for this Ally Financial Covered Calls position was as follows:
Stock Purchase Cost Basis: $19,633.35
= ($42.07 - $2.81) * 500 shares + $3.35 commission
Net Profit:
(a) Options Income: +$913.30
= ($2.81 + $1.70 - $2.67) * 500 shares - $6.70 commissions
(b) Dividend Income (Ex-dividend captured on April 29th, 2022): +$150.00
= ($.30 dividend per share x 500 shares)
(c) Capital Appreciation (Ally Covered Calls position closed out): -$320.00
+($41.43 - $42.07) * 500 shares
