During this past month, the Covered Calls Advisor Portfolio held a total of nine Covered Calls positions. Seven positions were closed out at a profit, no positions were closed out at a loss, and two positions closed 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:
- Two Covered Calls positions expired in-the-money (stock price above the strike price) at yesterday's (March 17th, 2023) monthly options expiration date with the following results:
- Home Depot Inc. (HD) -- +1.4% absolute return in 17 days (equivalent to a +29.6% annualized return-on-investment).
- Uber Technologies Inc. (UBER) -- +1.8% absolute return in 18 days (equivalent to a +35.5% annualized return-on-investment).
- Four 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:
- Applied Materials Inc. (AMAT) -- +1.4% absolute return in 15 days (equivalent to a +34.7% annualized return-on-investment).
- Discover Financial Services (DFS) -- +1.5% absolute return in 16 days (equivalent to a +33.3% annualized return-on-investment).
- Uber Technologies Inc. (UBER) -- +1.8% absolute return in 18 days (equivalent to a +35.5% annualized return-on-investment).
- United Airlines Inc. (UAL) -- +1.6% absolute return in 10 days (equivalent to a +58.7% annualized return-on-investment).
- One Covered Calls position was closed out by early assignment on the last business day prior to its ex-dividend date with the following results:
- Union Pacific Corporation (UNP) -- +0.6% absolute return in 4 days (equivalent to a +51.5% annualized return-on-investment).
- Two Covered Calls positions expired out-of-the-money (stock prices below their respective strike prices) yesterday (March 17th, 2023) on the monthly options expiration date with the following results:
- The Cigna Group (CI) -- The stock closed yesterday at $269.45 and the strike price was $280.00 so the 100 Cigna shares currently remain in the Covered Calls Advisor Portfolio.
- iShares China Large-Cap ETF (FXI) -- The FXI shares closed yesterday at $27.61, well below the $30.00 strike price, so the 1,000 FXI shares currently remain in the Covered Calls Advisor Portfolio.
Early next week for both of these positions, decisions will be made to either sell these shares or to continue these Covered Calls positions by selling future Call options against the long shares currently held.
During the past year (last 12 months) 101 of 114 positions (88.6%) 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 +17.9% during the past year and the average holding period for these 114 closed positions was 21.7 days. In comparison, the benchmark S&P 500 returned -10.8% during the same prior one-year period.
This Covered Calls Advisor blog is 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
