February 10th, 2023 Options Expiration Results

There was one Covered Calls position in the Covered Calls Advisor Portfolio with a February 10th, 2023 weekly options expiration date.  This position in D.R. Horton Company (ticker DHI) was closed out yesterday since its stock price of $98.59 at the market close yesterday was in-the-money, so the two $93.00 Call options expired worthless and the 200 shares owned were assigned (i.e. sold) at their $93.00 strike price. As detailed below, the result achieved was a +1.1% absolute return-on-investment (equivalent to a +38.4% annualized return-on-investment) for the 10 days holding period).  

D.R. Horton Company (DHI) -- Covered Calls Position Closed Out by Assignment on Its Options Expiration Date
The Buy/Write transaction was as follows:
2/1/2023 Bought 200 shares of D.R. Horton Co. stock @ $96.84 per share 
2/1/2023 Sold 2 D.R. Horton February 10th, 2023 $93.00 Call options @ $4.56 per share
2/6/2023 Ex-dividend of $.25 per share
2/10/2023 Two D.R. Horton $93.00 Calls expired in-the-money so the 200 DHI shares were sold at the $93.00 strike price to close out this Covered Calls position. 

The overall performance results (including commissions) were as follows:
Covered Calls Position Net Investment: $18,457.34
= ($96.84 - $4.56) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$912.00
= ($4.56 * 200 shares)
(b) Dividend Income (DHI stock assigned at the Feb. 10th, 2023 expiration): $50.00
= ($.25 dividend per share x 200 shares)
(c) Capital Appreciation (200 DHI shares assigned at $93.00 strike price at the Feb.10th options expiration date): -$768.00
+($93.00 - $96.84) * 200 shares

Total Net Profit: +$194.00

= (+$912.00 options income +$50.00 dividend income -$768.00 capital appreciation)
 

Absolute Return-on-Investment: +1.1%

= +$194.00/$18,457.34

Annualized Return-on-Investment: +38.4%

= (+$194.00/$18,457.34) * (365/10 days)