Monthly Options Expiration Results through February 17th, 2023

Each month on the day after the monthly options expiration date, this summary report provides the results of 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 January 20th, 2023 options expiration through yesterday's February 17th, 2023 monthly options expiration date.  

During this past month, the Covered Calls Advisor Portfolio held a total of thirteen Covered Calls positions.  Twelve positions were closed out at a profit, no positions were closed out at a loss, and one position remains open since it was out-of-the-money at the market close yesterday (i.e. on the monthly options expiration date). 

The specific results for each position are summarized as follows: 

• Four Covered Calls positions expired in-the-money (stock price above the strike price) at yesterday's (February 17th, 2023) monthly options expiration date with the following results: 

1. Archer-Daniels-Midland (ADM) -- +1.4% absolute return in 18 days (equivalent to a +28.3% annualized return-on-investment). 
   
2. Fastenal Company (FAST) -- +2.0% absolute return in 24 days (equivalent to a +30.6% annualized return-on-investment).
   
3. Charles Schwab Corp. (SCHW) -- +1.3% absolute return in 16 days (equivalent to a +30.0% annualized return-on-investment). 
   
4. Uber Technologies Inc. (UBER) -- +4.6% absolute return in 11 days (equivalent to a +152.0% annualized return-on-investment).

• Three Covered Calls positions expired in-the-money during the past month on their weekly options expiration dates and were therefore assigned at their strike prices with the following results:

1. D.R. Horton Company (DHI) -- +1.1% absolute return in 10 days (equivalent to a +38.4% annualized return-on-investment).
2. iShares China Large-Cap ETF (FXI) -- +1.3% absolute return in 17 days (equivalent to a +27.8% annualized return-on-investment). 
3. Lowe's Companies Inc. (LOW) -- +1.5% absolute return in 18 days (equivalent to a +29.8% annualized return-on-investment).

• Three Covered Calls positions were closed out by early assignment on the last business day prior to their ex-dividend date with the following results:

1. Exxon Mobil Corporation (XOM) -- +1.1% absolute return in 7 days (equivalent to a +59.3% annualized return-on-investment).
   
2. Marathon Petroleum Corp. (MPC) -- +1.1% absolute return in 7 days (equivalent to a +57.0% annualized return-on-investment).
   
3. Morgan Stanley (MS) -- +1.1% absolute return in 8 days (equivalent to a +49.9% annualized return-on-investment).
   

• Two Covered Calls positions were closed early based on my decision at that time to close out (i.e. unwind) the positions with the following results:

1. CVS Health Corp. (CVS) -- +2.0% absolute return in 20 days (equivalent to a +37.0% annualized return-on-investment).
2. Murphy Oil Corp. (MUR) -- This Covered Calls position was out-of-the-money (i.e. below the $40.00 strike price) during yesterday's monthly options expiration date.  With about one hour remaining until market close yesterday, a decision was made to unwind (i.e. close out) this position at a net credit of $39.48 per share.  The modestly profitable result was +0.6% absolute return in 19 days (equivalent to a +12.1% annualized return-on-investment).

• One Covered Calls positions in iShares China Large-Cap ETF expired out-of-the-money on yesterday's February 17th, 2023 options expiration date.  FXI closed at $29.53 and the strike price was $30.00.  These 1,000 FXI shares remain in the Covered Calls Advisor Portfolio and are currently held at a small unrealized loss.  Early next week, a decision will be made to either sell these shares or , most likely, to continue this Covered Calls positions by selling future Call options against the shares currently held.

During the past year (last 12 months) 110 of 124 positions (88.7%) 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 +16.4% during the past year and the average holding period for these 124 closed positions was 22.3 days.  In comparison, the benchmark S&P 500 returned -5.2% during the same prior one-year period.   

This Covered Calls Advisor blog is freely available to anyone interested in learning about implementing a successful Covered Calls investing strategy.  As always, I also encourage you to email me at partlow@cox.net any time you would like my feedback on your comments or questions on anything related to the Covered Calls investing strategy. 

Best Wishes and Godspeed,

Jeff Partlow
Covered Calls Advisor
partlow@cox.net