Continuation of Covered Calls Positions in Delta Air Lines Inc., Honeywell International Inc., and iShares China Large-Cap ETF

Last Friday, the August 18th, 2023 Covered Calls positions in Delta Air Lines Inc., Honeywell International Inc., and iShares China Large-Cap ETF closed out-of-the-money.  So the Calls expired and shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue all three of these Covered Calls positions by selling Call options to roll out to future options expiration dates.  The transactions-to-date for these positions as well as potential return-on-investment results are detailed below.

1.  Delta Air Lines Inc. (DAL) -- Continuation of Covered Calls Position

The Buy/Write transaction was as follows:
7/24/2023 Bought 500 shares of Delta Air Lines Inc. @ $47.49 per share 
7/24/2023 Sold 5 DAL August 4th, 2023 $46.00 Call options @ $1.93 per share
8/4/2023 Five DAL Calls expired out-of-the-money so the 500 shares remained in the Covered Calls Advisor Portfolio.
8/7/2023 Continued this Delta Air Lines Inc. Covered Calls position by selling 5 Delta August 18th, 2023 Call options at the $45.00 strike price for $.56 per share.  The FXI share price was $44.93 when these Calls were sold and their Implied Volatility was 39.6.

8/18/2023 Five DAL Calls expired out-of-the-money so the 500 shares remained in the Covered Calls Advisor Portfolio.
8/21/2023 Continued this Delta Air Lines Inc. Covered Calls position by selling 5 Delta September 1st, 2023 Call options at the $43.00 strike price for $.49 per share.  The Delta share price was $41.80 when these Calls were sold.

A possible overall performance result (including commissions) for this Delta Air Lines Inc. Covered Calls position if the stock is in-the-money at its options expiration date is as follows:
Delta Air Lines Covered Calls Net Investment: $22,783.35
= ($47.49 - $1.93) * 500 shares + $3.35 commission

Net Profit Potential:
(a) Options Income: +$1,674.95
= ($1.93 + $.95 + $.49) * 500 shares - $10.05 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 500 Delta Air Lines shares assigned at $43.00 strike price at the 9/1/2023 options expiration date): -$2,245.00
+($43.00 - $47.49) * 500 shares

Potential Total Net Profit (If 500 Delta Air Lines shares assigned at the $45.00 strike price upon options expiration): -$570.05
= (+$1,674.95 options income +$0.00 dividend income -$2,245.00 capital appreciation)

Absolute Return-on-Investment Potential: -2.5%
= -$570.05/$22,783.35
Annualized Return-on-Investment Potential: -23.4%
= (-$570.05/$22,783.35) * (365/39 days)

2.  Honeywell International Inc. (HON) -- Continuation of Covered Calls Position

The buy/write transaction was:
7/31/2023 Bought 200 Honeywell shares @ $193.51
7/31/2023 Sold 2 Honeywell 8/18/2023 $190.00 Call options @ $4.99
8/10/2023 Quarterly ex-dividend of $1.03 per share

8/18/2023 Two HON Calls expired out-of-the-money so the 200 shares remained in the Covered Calls Advisor Portfolio.
8/21/2023 Continued this Honeywell Covered Calls position by selling 2 Honeywell September 15th, 2023 Call options at the $190.00 strike price for $2.30 per share.  The Honeywell share price was $186.99 when these Calls were sold.

A possible overall performance results (including commissions) for this Honeywell Covered Calls position if the stock is in-the-money at its options expiration date is as follows:
Honeywell Covered Calls Net Investment: $37,705.34
= ($193.51 - $4.99) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,455.32
= ($4.99 + $2.30) * 200 shares - $2.68 commission
(b) Dividend Income: +$206.00
= ($1.03 dividend per share x 200 shares)

(c) Capital Appreciation (If HON shares assigned at $190.00 strike price at the 9/15/2023 options expiration date): -$702.00
+($190.00 - $193.51) * 200 shares

Total Net Profit (If Honeywell shares assigned at $190.00 on the Sept. 15th, 2023 options expiration date): +$959.32

= (+$1,455.32 +$206.00 -$702.00)

Absolute Return-on-Investment (If Honeywell shares assigned at $190.00 at the 9/15/2023 options expiration date): +2.5%

= +$959.32/$37,705.34

Annualized Return-on-Investment (If HON shares assigned at $190.00 at the Sept. 15th, 2023 expiration): +20.2%

= (+$959.32/$37,705.34) * (365/46 days)

3.  iShares China Large-Cap ETF (FXI) -- Continuation of Covered Calls Position 
The Buy/Write transaction was as follows:
8/2/2023 Bought 1,000 shares of iShares China Large-Cap ETF @ $28.77 per share.  
8/2/2023 Sold 10 FXI August 18th, 2023 $27.85 Call options @ $1.37 per share.
8/18/2023 Ten FXI Calls expired out-of-the-money so the 1,000 shares remained in the Covered Calls Advisor Portfolio.
8/21/2023 Continued this iShares China Large-Cap ETF Covered Calls position by selling 10 FXI Sept 1st, 2023 Call options at the  $27.50 strike price for $.18 per share.  The FXI share price was $26.06 when these Calls were sold.

A possible overall performance result (including commissions) for this iShares China Large-Cap ETF Covered Calls position if the stock is in-the-money at its options expiration date is as follows:

FXI Covered Calls Net Investment: $27,406.70
= ($28.77 - $1.37) * 1,000 shares + $6.70 commission

Net Profit Potential:
(a) Options Income: +$1,536.60
= ($1.37 + $.18) * 1,000 shares - $13.40 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 1,000 iShares China Large-Cap ETF shares assigned at $27.50 strike price at the Sept 1st options expiration date): -$1,270.00

+($27.50 - $28.77) * 1,000 shares

Potential Total Net Profit (If 1,000 iShares China Large-Cap ETF shares assigned at $27.50 strike price at the 9/1/2023 options expiration): +$266.60
= (+$1,536.60 options income +$0.00 dividend income -$1,270.00 capital appreciation)

Absolute Return-on-Investment Potential: +1.0%
= +$266.60/$27,406.70
Annualized Return-on-Investment Potential: +11.8%
= (+$266.60/$27,406.70) * (365/30 days)