Continuation of Covered Calls Position in Delta Air Lines Inc.

Last Friday, the October 6th, 2023 $41.00 Covered Calls position in Delta Air Lines Inc. (ticker DAL) closed out-of-the-money, so the Calls expired and 500 DAL shares remained in the Covered Calls Advisor Portfolio.  The price of all airlines (including Delta) have declined sharply as the price of jet fuel has increased along with the spike in crude oil.  Despite Delta's next quarterly earnings report being later this week, I decided to continue this Covered Calls position by rolling down and out to the October 20th, 2023 $37.50 strike price at $.68 per share this morning when Delta's stock price was $36.38.  

As detailed below, a potential return-on-investment result is -11.8% absolute return-on-investment (equivalent to -49.0% annualized return-on-investment for the 88 days holding period) if the stock price is in-the-money (i.e. above the current $37.50 strike price) and therefore assigned on the October 20th, 2023 options expiration date.  

Delta Air Lines Inc. (DAL) -- Covered Calls Position Continued

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.

9/1/2023 Five DAL 9/1/2023 $43.00 Calls expired out-of-the-money so the 500 shares remained in the Covered Calls Advisor Portfolio.

9/5/2023 Continued this Delta Air Lines Inc. Covered Calls position by selling 5 Delta September 15th, 2023 Call options at the $41.00 strike price for $.46 per share.  

9/15/2023 Five DAL 9/15/2023 $41.00 Calls expired out-of-the-money so the 500 shares remained in the Covered Calls Advisor Portfolio.

9/15/2023 Continued this Delta Air Lines Inc. Covered Calls position by selling 5 Delta October 6th, 2023 Call options at the $41.00 strike price for $.53 per share.  

10/6/2023 Five DAL 10/6/2023 $41.00 Calls expired out-of-the-money so the 500 shares remained in the Covered Calls Advisor Portfolio.

10/10/2023 Continued this Delta Air Lines Inc. Covered Calls position by selling 5 Delta October 20th, 2023 Call options at the $37.50 strike price for $.68 per share.  The stock price was $36.38 when these Call options 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: +$2,304.90
= ($1.93 + $.56 + $.49 + $.46 + $.53 + $.68) * 500 shares - $20.10 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 500 Delta Air Lines shares assigned at $37.50 strike price at the 10/20/2023 options expiration date): -$4,995.00
+($37.50 - $47.49) * 500 shares

Potential Total Net Profit (If 500 Delta Air Lines shares assigned at the $37.50 strike price upon options expiration): -$2,690.10
= (+$2,304.90 options income +$0.00 dividend income -$4,995.00 capital appreciation)

Absolute Return-on-Investment Potential: -11.8%
= -$2,690.10/$22,783.35
Annualized Return-on-Investment Potential: -49.0%
= (-$2,690.10/$22,783.35) * (365/88 days)