January 13th, 2023 Options Expiration Results

There was one Covered Calls position in the Covered Calls Advisor Portfolio with a January 13th, 2023 weekly options expiration date.  This position in Alcoa Corporation (ticker AA) was closed out yesterday since its stock price of $54.61 at the market close yesterday was in-the-money, so the four $43.00 Call options expired worthless and the 400 shares owned were assigned (i.e. sold) at their $43.00 strike price. As detailed below, the result achieved was a +1.7% absolute return-on-investment (equivalent to a +42.4% annualized return-on-investment) for the 15 days holding period).  

Alcoa Corporation (AA) -- Covered Calls Position Closed Out by Assignment on the Options Expiration Date
The simultaneous buy/write transaction was:
12/30/2022 Bought 400 Alcoa Corporation shares @ $45.94
12/30/2022 Sold 4 AA 1/13/2023 $43.00 Call options @ $3.86 per share. Note: the Implied Volatility of these Calls was 55.8 when this transaction was executed.
1/13/2023 Four Alcoa $43.00 Calls expired in-the-money so the 400 Alcoa shares were sold at the $43.00 strike price to close out this Covered Calls position. 

The overall performance results (including commissions) for this Alcoa Covered Calls position were as follows:
Covered Calls Net Investment: $16,834.68
= ($45.94 - $3.86) * 400 shares + $2.68 commission

Net Profit:
(a) Options Income: +$1,469.32
= ($3.68 * 400 shares) - $2.68 commission
(b) Dividend Income (Alcoa shares assigned at the January 13th, 2023 options expiration): +$0.00
= ($0.00 dividend per share x 400 shares)
(c) Capital Appreciation (Alcoa shares assigned at $43.00 strike price at expiration): -$1,176.00
+($43.00 - $45.94) * 400 shares

Total Net Profit: +$293.32

= (+$1,469.32 options income +$0.00 dividend income -$1,176.00 capital appreciation)
 

Absolute Return-on-Investment: +1.7%

= +$293.32/$16,834.68

Annualized Return-on-Investment: +42.4%

= (+$293.32/$16,834.68) * (365/15 days)