Early Assignment of Bank of America Corporation and McDonald's Corporation Covered Calls Positions

Early this morning, I was notified via email from my broker (Schwab) that my Covered Calls positions in Bank of America Corporation (ticker BAC) and McDonald's Corporation (ticker MCD) were closed out by early assignment yesterday which is the day before today's ex-dividend date for both companies.   There was very little time value remaining in the Call options for both companies, so with eight days remaining until the September 8th options expiration date for both positions, the Call owners decided to exercise their Calls early to capture today's ex-dividend.  So the Calls expired worthless and the stocks were sold at their respective strike prices with the following results:

1. Bank of America Corporation (BAC) -- I had owned 500 BAC shares and sold five September 8th, 2023 $28.00 Calls and today's ex-dividend amount is $.24 per share.  This position achieved +1.0% absolute return (equivalent to +36.0% annualized return-on-investment) for the 10 days of this investment.  

2. McDonald's Corporation (MCD) -- I had owned 100 MCD shares and sold one September 8th, 2023 $275.00 Call option and today's ex-dividend amount is $1.52 per share.  This position achieved +0.7% absolute return (equivalent to +26.9% annualized return-on-investment) for the 10 days of this investment.  

The original blog post details when both positions were established is here.

I welcome your questions or feedback at the email address below on anything related to the Covered Calls investing strategy.  

Best Wishes and Godspeed,

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net