The original Buy/Write transaction was as follows:9/1/2023 Bought 1,000 shares of iShares China Large-Cap ETF @ $27.99 per share.
9/1/2023 Sold 10 FXI Sept. 15th, 2023 $28.00 Call options @ $.63 per share.
9/15/2023 Ten FXI Call options closed out-of-the-money, so these options expired and 1,000 shares remain in the Covered Calls Advisor Portfolio.
9/22/2023 Continued this iShares China Large-Cap ETF Covered Calls position by selling 10 FXI October 13th, 2023 Call options at the $27.50 strike price for $.60 per share. The iShares China Large-Cap ETF share price was $27.21 when these Calls were sold and their Implied Volatility was 27.7.
A possible overall performance results (including commissions) for this iShares China Large-Cap ETF Covered Calls position if assigned on the 10/13/2023 options expiration date is as follows:
FXI Covered Calls Net Investment: $27,366.70
= ($27.99 - $.63) * 1,000 shares + $6.70 commission
Net Profit:
(a) Options Income: +$1,216.60
= ($.63 + $.60) * 1,000 shares - $13.40 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 1,000 iShares China Large-Cap ETF shares assigned at the $27.50 strike price at the 10/13/2023 expiration): -$490.00
+($27.50 - $27.99) * 1,000 shares
Total Net Profit Potential (If 1,000 iShares China Large-Cap ETF shares assigned at the $27.50 strike price at the options expiration date): +$726.60
= (+$1,216.60 options income +$0.00 dividend income -$490.00 capital appreciation)
Potential Absolute Return-on-Investment: +2.7%
= +$726.60/$27,366.70
Potential Annualized Return-on-Investment: +23.1%
= (+$726.60/$27,366.70) * (365/42 days)
