Monthly Options Expiration Results through August 19th, 2022

Each month on the day after the monthly options expiration date, this summary report provides the results on all positions that have been closed out during the past month (i.e. since the prior month's options expiration date). So this post covers the period from the day after last month's July 15th, 2022 options expiration through yesterday's August 19th, 2022 monthly options expiration date.  

During this past month, the Covered Calls Advisor Portfolio held a total of seven positions.  All seven positions were closed out at a profit.  A summary of results for these seven positions is provided below:

• Four Covered Calls positions expired in-the-money (stock price above the strike price) on their August 19th, 2022 monthly options expiration date with the following results: 

1. Alcoa Corporation (AA) -- +3.1% absolute return in 19 days (equivalent to +59.4% annualized return-on-investment).  
2. Exxon Mobil Corporation (XOM) -- +2.1% absolute return in 16 days (equivalent to +48.1% annualized return-on-investment).
3. Pfizer Inc. (PFE) -- +0.9% absolute return in 9 days (equivalent to +36.9% annualized return-on-investment).
4. Valero Energy Corporation (VLO) -- +2.3% absolute return in 23 days (equivalent to +36.5% annualized return-on-investment).

 

• One deep-in-the-money Covered Calls position was closed by Early Assignment on the day prior to its ex-dividend dates with the following results:

1. Lowes Companies Inc. (LOW) -- +0.9% absolute return in 7 days (equivalent to +45.6% annualized return-on-investment).

• Two positions expired on their Weekly options expiration date with the following results:

1. Delta Air Lines Inc. (DAL) Covered Calls -- +2.9% absolute return in 17 days (equivalent to +61.6% annualized return-on-investment).
2. Wells Fargo Inc. (WFC) Covered Calls -- +1.3% absolute return in 12 days (equivalent to +40.3% annualized return-on-investment).
   

During the past year (last 12 months) 115 of 125 positions (92%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit.  The Covered Calls Advisor Portfolio weighted average annualized-return-on-investment (aroi) was +24.6% during the past year and the average holding period for these 125 closed positions was 22.1 days.  In comparison, the benchmark S&P 500 returned -4.8% during the same prior one-year period.  As demonstrated by these past year's results, the Covered Calls strategy can be exceptionally beneficial during Slightly Bearish time periods such as we have experienced during the past year.  However, my one caveat is that this exceptionally large outperformance by the Covered Calls Advisor Portfolio relative to the S&P 500 substantially exceeds that which would normally be expected over a period of several years using the Covered Calls investing strategy.  As indicated in this post made last 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 at least 3 to 5 percentage points on an annualized-return-on-investment basis".  Please consider carefully re-reading the article in the link shown above. 

This Covered Calls Advisor blog is a free service available to anyone interested in learning how to implement a successful Covered Calls investing strategy.  As always, I welcome your emails with any comments or questions related to this post or anything related to Covered Calls investing. 

Best Wishes and Godspeed,

Jeff Partlow
Covered Calls Advisor
partlow@cox.net