During this past month, the Covered Calls Advisor Portfolio held a total of twelve positions. Six positions were closed out at a profit and six positions had their options expire out-of-the-money and these stocks currently remain in the Covered Calls Advisor Portfolio at an unrealized loss.
The specific results for each position are summarized as follows:
- Three Covered Calls positions expired in-the-money (stock price above the strike price) on their December 16th, 2022 monthly options expiration date and were therefore assigned with the following results:
- Mosaic Company -- +3.2% absolute return-on-investment in 29 days (equivalent to a +40.4% annualized return-on-investment).
- Tapestry Inc. -- +2.3% absolute return-on-investment in 17 days (equivalent to a +48.6% annualized return-on-investment).
- United Rentals Inc. -- +2.3% absolute return-on-investment in 29 days (equivalent to a +28.7% annualized return-on-investment).
- Two Covered Calls positions expired in-the-money on their respective Weekly options expiration dates during the past month as follows:
- Exxon Mobil Corp. -- +1.9% absolute return-on-investment in 22 days (equivalent to a +32.0% annualized return-on-investment).
- Discover Financial Services -- +2.2% absolute return-on-investment in 18 days (equivalent to a +45.2% annualized return-on-investment).
- One Covered Call position in Qualcomm Inc. was closed out early based on my decision at the time with a +1.0% absolute return-on-investment in 19 days (equivalent to a +18.8% annualized return-on-investment).
- Six positions (five Covered Calls positions and one Cash-Secured Puts positions) had December 16th options expirations close below their strike prices, so the options expired and the stocks now remain in the Covered Calls Advisor Portfolio. These positions are: (1) 500 shares in Bank of America Corp.; (2) 300 shares in Devon Energy Corporation; (3) 300 shares in Global Payments Inc.; (4) 400 shares in Kohl's Corporation; (5) 400 shares in Suncor Energy Inc.; and (6) 200 shares in Tyson Foods Inc. Early next week, decisions will
be made for each of these six positions to
either sell the shares or
to continue
the Covered Calls positions by selling future Call options
against
the shares currently held. As always, the details of all transactions will be posted on this blog site on the same day the transactions occur.
During the past year (last 12 months) 109 of 118 positions (92.4%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit and 9 positions were closed out at a loss. The Covered Calls Advisor Portfolio weighted average annualized-return-on-investment (aroi) was +19.2% during the past year and the average holding period for these 118 closed positions was 22.7 days. In comparison, the benchmark S&P 500 returned -15.8% during the same prior one-year period.
As demonstrated by these past year's results, the Covered Calls strategy can be extraordinarily beneficial during Bearish markets such as we have experienced during the past year, and especially by selling moderately in-the-money strike prices to provide added downside protection in bearish markets. However, be advised that these return-on-investment results by the Covered Calls Advisor Portfolio above that of the benchmark S&P 500 (i.e. +19.2% versus -15.8%) substantially exceeds that which would normally be expected over a period of several years using the Covered Calls investing strategy.
This Covered Calls Advisor blog (see here) is available to all who are interested in learning the benefits of the Covered Calls investing strategy. As always, I encourage you to email me at partlow@cox.net any time you would like my feedback on your comments or questions related to Covered Calls.
Best Wishes and Happy Holidays,
Jeff Partlow
Covered Calls Advisor
partlow@cox.net
