Continuation of Covered Calls Positions in Match Group Inc. and U.S. Bancorp

The Covered Calls positions in Match Group Inc. (ticker MTCH) and U.S. Bancorp (ticker USB) closed out-of-the-money, so the Calls expired and shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue both of these Covered Calls positions by selling Call options to roll out to the October 20th, 2023 options expiration dates. Both positions are currently held at a loss and these rollout transactions are an attempt to repair them back toward breakeven. The transactions-to-date for these positions as well as the potential return-on-investment results if these positions are assigned on their 10/20/2023 expiration date are as follows:

1. Match Group Inc. (MTCH) -- Continuation of Covered Calls Position

The buy/write transaction was:
9/18/2023 Bought 400 Match Group Inc. shares @ $42.78
9/18/2023 Sold 4 MTCH 9/29/2023 $41.00 Call options @ $2.26 per share.
9/29/2023 400 Match Group shares closed out-of-the-money so 4 Calls expired and 400 MTCH shares remain in the Covered Calls Advisor Portfolio.

10/9/2023 Continued Covered Calls position by selling 4 Match Group 10/20/2023 Call options at the $38.50 strike price for $.64 per share when the stock price was $37.20.

A possible overall performance result (including commissions) for this Match Group Covered Calls position is:
Match Group Covered Calls Net Investment: $16,210.68
= ($42.78 - $2.26) * 400 shares + $2.68 commission

Net Profit:
(a) Options Income: +$1,153.30
= ($2.26 + $.64) * 400 shares - $6.70 commissions
(b) Dividend Income: +$0.00
= ($0.00 dividends per share x 400 shares)
(c) Capital Appreciation (If MTCH shares assigned at $38.50 strike price at expiration): -$1,712.00
+($38.50 - $42.78) * 400 shares

Total Net Profit (If options exercised on the 10/20/2023 options expiration date): -$558.70

= (+$1,153.30 options income +$0.00 dividend income -$1,712.00 capital appreciation)

Potential Absolute Return-on-Investment (If the Match Group Inc. shares are assigned at the $38.50 strike price at the Oct. 20th, 2023 options expiration date): -3.4%

= -$558.70/$16,210.68

Potential Annualized Return-on-Investment (If 400 Match Group shares assigned at $38.50 at the 10/20/2023 options expiration): -39.3%

= (-$558.70/$16,210.68) * (365/32 days)

2. U.S. Bancorp (USB) -- Continuation of Covered Calls Position

The buy/write transaction was:
9/15/2023 Bought 500 U.S. Bancorp shares @ $35.23
9/15/2023 Sold 5 USB 10/6/2023 $34.00 Call options @ $1.65 per share.
9/28/2023 Ex-dividend of $.48 per share.

10/6/2023 500 U.S. Bancorp shares closed out-of-the-money so 5 USB Calls expired and 500 shares remain in the Covered Calls Advisor Portfolio.

10/9/2023 Continuation of Covered Calls position by selling 5 USB 10/20/2023 Call options at the $33.00 strike price for $.65 per share when the stock price was $31.97.

A possible overall performance result (including commissions) for this U.S. Bancorp Covered Calls position is:

U.S. Bancorp Covered Calls Net Investment: $16,793.35
= ($35.23 - $1.65) * 500 shares + $3.35 commission

Net Profit:
(a) Options Income: +$1,143.30
= ($1.65 + $.65) * 500 shares - $6.70 commissions
(b) Dividend Income: +$240.00
= ($0.48 dividends per share x 500 shares)
(c) Capital Appreciation (If USB shares assigned at $33.00 strike price at expiration): -$1,115.00
+($33.00 - $35.23) * 500 shares

Total Net Profit (If options exercised on the 10/20/2023 options expiration date): +$268.30

= (+$1,143.30 options income +$240.00 dividend income -$1,115.00 capital appreciation)

Potential Absolute Return-on-Investment (If the U.S. Bancorp shares are assigned at the $33.00 strike price at the Oct. 20th, 2023 options expiration date): +1.6%

= +$268.30/$16,793.35

Potential Annualized Return-on-Investment (If 500 USB shares assigned at $33.00 at the 10/20/2023 options expiration): +16.7%

= (+$268.30/$16,793.35) * (365/35 days)

Jeff Partlow (The Covered Calls Advisor)

partlow@cox.net