September 9th, 2022 Options Expiration Results

The Covered Calls Advisor Portfolio had three Covered Calls positions with September 9th, 2022 weekly options expiration dates.  Two positions (Bank of America Corporation and Fedex Corporation) were in-the-money and therefore assigned on their Sept 9th options expiration date.  The third position in Qualcomm Inc. was a Covered Calls position that closed out-of-the-money.  The results to-date for each position were as follows:

1. Bank of America Corporation (BAC) -- +1.7% absolute return (equivalent to +32.7% annualized return-on-investment) for the 19 days of this investment.  The original post for this position is here.  The five hundred shares were in-the-money since the closing price of $34.94 was above the $33.00 strike price. 

2. Fedex Corporation (FDX) -- +1.1% absolute return (equivalent to +37.8% annualized return-on-investment) for the 11 days of this investment.  The original post for this position is here.  The one hundred shares were in-the-money since the closing price of $209.07 was above the $205.00 strike price. 

The cash now available from the assignment (i.e. closing) of these Bank of America and Fedex Covered Calls positions will be retained until new Covered Calls and/or 100% Cash-Secured Puts positions are established.  Given the Covered Calls Advisor's currently Bearish Overall Market outlook, new positions will be hedged by continuing to establish Covered Calls at in-the-money strike prices with good downside protection. 

3. Qualcomm Inc. (QCOM) -- The six hundred shares closed out-of-the-money with the $132.05 stock price below the $134.00 strike price at expiration.  So, the Call options expired and the 600 QCOM shares remain in the Covered Calls Advisor Portfolio.  

A decision will be made early next week to either sell these Qualcomm shares or, more likely, to continue this Covered Calls position with a rollout transaction by selling future Qualcomm Call options against the 600 shares currently held.  When rolling an existing Covered Calls position, I often like to choose a future expiration date of about two weeks duration, which would be September 23rd for this Qualcomm position.  This approach is contingent on: (1) the bid/ask spread for the Calls being sufficiently tight; and (2) there is no intervening quarterly earnings report prior to the options expiration date.   

Email me at the address shown below with any questions you might have related to the Covered Calls investing strategy.

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net