Rolled Out the iShares China Large-Cap ETF Covered Calls Position

The Covered Calls Advisor Portfolio has a Covered Calls position in iShares China Large-Cap ETF (ticker FXI)  that expired out-of-the-money at its February 17th, 2023 options expiration date.  iShares China Large-Cap ETF closed at $29.53 then and the strike price was $30.00.  I decided to continue this Covered Calls position today by rolling-out to the same $30.00 strike price at the March 17th, 2023 expiration date by selling ten Call options at $.59 per share against the 1,000 FXI shares owned when the stock price today was $29.50.   

As detailed below, two potential return-on-investment results are: (1) +1.7% absolute return (equivalent to +14.2% annualized return for the 43 days holding period) if the iShares China Large-Cap ETF price is unchanged at today's $29.50 price on the March 17th, 2023 expiration date; and (2) +3.4% absolute return (equivalent to +28.6% annualized return for the 43 days holding period) if it is in-the-money (i.e. above the $30.00 strike price) on the March 17th expiration date.

iShares China Large-Cap ETF (FXI) -- Covered Calls Position Continued by Rollout

The Buy/Write transaction was as follows:
2/3/2023 Bought 1,000 shares of iShares China Large-Cap ETF @ $31.10 per share 
2/3/2023 Sold 10 FXI Feb 17th, 2023 $30.00 Call options @ $1.52 per share
2/17/2023 Ten FXI Call options expired out-of-the-money and 1,000 shares remain in the Covered Calls Advisor Portfolio
3/2/2023 Continued iShares China Large-Cap ETF Covered Calls position by selling ten March 17th, 2023 $30.00 Call options @ $.59 per share.  The stock price was $29.50 when this transaction was made.

Two possible overall performance results (including commissions) for this iShares China Large-Cap ETF Covered Calls position are as follows:
FXI Covered Calls Net Investment: $29,586.70
= ($31.10 - $1.52) * 1,000 shares + $6.70 commission

Net Profit:
(a) Options Income: +$2,096.60
= ($1.52 + $.59) * 1,000 shares - $13.40 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If the iShares China Large-Cap ETF price is unchanged at today's $29.50 price on the March 17th, 2023 expiration date): -$1,600.00
+($29.50 current stock price - $31.10 stock purchase price) * 1,000 shares; OR
(c) Capital Appreciation (If iShares China Large-Cap ETF shares are assigned at the $30.00 strike price at the 3/17/2023 options expiration date): -$1,100.00
+($30.00 options strike price - $31.10 stock purchase price) * 1,000 shares

1. Total Net Profit (If the iShares China Large-Cap ETF price is unchanged at today's $29.50 price on the March 17th, 2023 expiration date): +$496.60

= (+$2,096.60 options income +$0.00 dividend income -$1,600 capital appreciation); OR

2. Total Net Profit (If iShares China Large-Cap ETF shares are assigned at the $30.00 strike price at the 3/17/2023 options expiration date): +$996.60

= (+$2,096.60 options income +$0.00 dividend income -$1,100.00 capital appreciation)

 

1. Absolute Return-on-Investment (If the iShares China Large-Cap ETF price is unchanged at today's $29.50 price on the 3/17/2023 expiration date): +1.7%

= +$496.60/$29,586.70

Annualized Return-on-Investment (If stock price unchanged at $29.50 at expiration): +14.2%

= (+$496.60/$29,586.70) * (365/43 days); OR

2. Absolute Return-on-Investment (If iShares China Large-Cap ETF shares are assigned at the $30.00 strike price at the 3/17/2023 options expiration date): +3.4%

= +$996.60/$29,586.70

Annualized Return-on-Investment (If iShares China Large-Cap ETF shares are assigned at the $30.00 strike price at the March 17th options expiration date): +28.6%
= (+$996.60/$29,586.70) * (365/43 days)