Rolled Out The Cigna Group Covered Call Position

The Covered Calls Advisor Portfolio has a Covered Call position in The Cigna Group (ticker CI)  that expired out-of-the-money last Friday at its April 21st, 2023 options expiration date.  Cigna shares closed at $252.12 then and the strike price was $270.00.  Since I remain bullish on Cigna's stock price and believe it has a good chance of reversing back to a positive trend, I decided to attempt to repair this current losing position back toward breakeven.  So, today I continued this Covered Call position by rolling down-and-out to the $265.00 strike price at the May 12th, 2023 expiration date by selling one Call option at $3.52 per share against the 100 Cigna shares owned.  The stock price had risen to $256.47 today when this Cigna Call option sale was transacted.   

As detailed below, two potential return-on-investment results are: (1) - 3.6% absolute return (equivalent to -17.8% annualized return-on-investment for the 73 days holding period) if Cigna's price is unchanged at today's $256.47 price on the May 12th, 2023 expiration date; and (2) -0.5% absolute return (equivalent to -2.5% annualized return-on-investment for the 73 days holding period) if it is in-the-money (i.e. above the $265.00 strike price) on the May 12th options expiration date.

Cigna's next quarterly earnings report before market open on May 5th is prior to the May 12th options expiration date.  Since I prefer not to hold positions in companies on their earnings reporting dates, I will make a decision whether or not to unwind (i.e. close out) this position prior to May 5th.   

The Cigna Corporation (CI) -- Covered Call Position Continued by Rollout
The original buy/write transaction was as follows:
3/1/2023 Bought 100 Cigna Corp. shares @ $289.40
3/1/2023 Sold 1 Cigna 3/17/2023 $280.00 Call option @ $11.70
3/7/2023 Quarterly ex-dividend of $1.23 per share
3/17/2023 One Cigna Call option expired out-of-the-money and 100 shares remain in the Covered Calls Advisor Portfolio
3/21/2023 Continued Cigna Covered Call position by selling one March 31st, 2023 $27.50 Call option @ $4.10 per share.  The stock price was $276.68 when this transaction was made.
3/31/2023 One Cigna Call option expired out-of-the-money and 100 shares remain in the Covered Calls Advisor Portfolio
4/3/2023 Continued Cigna Covered Call position by selling one April 21st, 2023 $270.00 Call option @ $2.50 per share.  The stock price was $262.30 when this transaction was made and the Delta for this Call option was 29.9.
4/24/2023 Continued Cigna Covered Call position by selling one May 12th, 2023 $265.00 Call option @ $3.52 per share.  The stock price was $256.47 when this transaction was made and the Delta for this Call option was 43.2.

Two possible overall performance results (including commissions) for this Cigna Covered Call position are as follows:
Covered Call Cost Basis: $27,770.67
= ($289.40 - $11.70) * 100 shares + $.67 commissions

Net Profit Components:
(a) Options Income: +$2,179.32
= ($11.70 + $4.10 + $2.50 + $3.52) * 100 shares - $2.68 commissions
(b) Dividend Income: +$123.00
= ($1.23 dividend per share x 100 shares)
(c) Capital Appreciation (If CI stock price unchanged at $256.47 on the May 12th options expiration date): -$3,293.00
+($256.47 - $289.40) * 100 shares; or
(c) Capital Appreciation (If Cigna shares assigned at $265.00 strike price at the 5/12/2023 options expiration): -$2,440.00
+($265.00 - $289.40) * 100 shares

1. Total Net Profit [If stock price unchanged at $256.47 and Covered Call position unwound (i.e.closed out) on the 5/12/2023 options expiration date): -$990.68

= (+$2,179.32 options income +$123.00 dividend income - $3,293.00 capital appreciation); or

2. Total Net Profit (If Cigna shares assigned at $265.00 strike price at the May 12th, 2023 expiration): -$137.68

= (+$2,179.32 + $123.00 - $2,440.00)

1. Absolute Return-on-Investment [If Cigna stock price unchanged at $256.47 on the 5/12/2023 options expiration date]: -3.6%

= -$990.68/$27,770.67

Annualized Return-on-Investment (If Cigna stock price unchanged at $256.47 on the 5/12/2023 options expiration date): -17.8%

= (-$990.68/$27,770.67) * (365/73 days); or

2. Absolute Return-on-Investment (If Cigna shares assigned at $265.00 strike price on the 5/12/2023  expiration): -0.5%

= -$137.68/$27,770.67

Annualized Return-on-Investment (If Cigna stock assigned at $265.00 at the 5/12/2023 expiration): -2.5%

= (-$137.68/$27,770.67) * (365/73 days)