During this past month, the Covered Calls Advisor Portfolio held a total of eight positions. Seven positions were closed out at a profit and one position in iShares China Large-Cap ETF had its options expire out-of-the-money so the shares currently remain in the Covered Calls Advisor Portfolio.
The specific results for each position are summarized as follows:
- Four Covered Calls positions expired in-the-money (stock price above the strike price) on their May 19th, 2023 monthly options expiration date as follows:
- CF Industries Holdings Inc. -- +1.8% absolute return-on-investment in 12 days (equivalent to a +56.0% annualized return-on-investment).
- Charles Schwab Corporation -- +1.5% absolute return-on-investment in 12 days (equivalent to a +46.6% annualized return-on-investment).
- Uber Technologies Inc. -- +3.6% absolute return-on-investment in 11 days (equivalent to a +118.6% annualized return-on-investment).
- United Rentals Inc. -- +1.9% absolute return-on-investment in 22 days (equivalent to a +31.0% annualized return-on-investment).
- Two Covered Calls positions expired in-the-money on their respective Weekly options expiration dates during the past month as follows:
- CVS Health Corp. -- +1.6% absolute return-on-investment in 17 days (equivalent to a +34.3% annualized return-on-investment).
- Uber Technologies Inc. -- +1.1% absolute return-on-investment in 11 days (equivalent to a +35.2% annualized return-on-investment).
- One Covered Call position in Morgan Stanley was closed out by early assignment on the day prior to its quarterly ex-dividend date with a +0.5% absolute return-on-investment in 3 days (equivalent to a +56.6% annualized return-on-investment).
- One Covered Calls positions in iShares China Large-Cap ETF closed out-of-the-money on its monthly May 19th, 2023 options expiration date, so the options expired and the shares now remain in the Covered Calls Advisor Portfolio. Early next week, a decision will
be made to
either close out the position by selling the shares or to continue
the Covered Calls positions by selling future Call options
against
the shares currently held. As always, the details of all transactions will be posted on this blog site on the same day the transactions occur.
During the past year (last 12 months) 103 of 114 positions (90.4%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit and 11 positions were closed out at a loss. The Covered Calls Advisor Portfolio weighted average annualized-return-on-investment (aroi) was +20.6% during the past year and the average holding period for these 114 closed positions was 20.1 days. In comparison, the benchmark S&P 500 returned +5.5% during the same prior one-year period.
As demonstrated by these past year's results, the Covered Calls investing strategy can be extraordinarily beneficial when applied in an informed and disciplined manner. However, my caveat to you is that these return-on-investment results achieved by the Covered Calls Advisor Portfolio during the past year above that of the benchmark S&P 500 (i.e. +20.6% versus +5.5%) should not be your expectation over a period of several years. Instead, as indicated in this post made in 2021 on this blog site (see Link), "by exploiting our Covered Calls investing 'edges', we can expect to achieve (over a period of several years) an average annualized-return-on-investment above the S&P 500 benchmark index of at least 3 to 5 percentage points on an annualized-return-on-investment basis".
This Covered Calls Advisor blog (see homepage here) is available to all who are interested in learning about the Covered Calls investing strategy. As always, I encourage you to email me at partlow@cox.net any time you would like my feedback on your comments or questions related to Covered Calls.
Best Wishes to All,
Jeff Partlow
Covered Calls Advisor
partlow@cox.net
