The post when this Citigroup Inc. Covered Calls position was originally established is here. As detailed below, the return-on-investment result for this Citigroup Covered Calls position was +1.1% absolute
return in 9 days (equivalent to a +42.6% annualized
return-on-investment).
Citigroup Inc. (C) -- Covered Calls Position Closed by Early Assignment
The transactions were:
10/25/2023 Bought 500 Citigroup shares @ $38.55
10/25/2023 Sold 5 Citigroup 11/10/2023 $37.50 Call options @ $1.44 per share.
Note: the Implied Volatility of these Call options was 27.1 when this position was established.
11/3/2023 Citigroup Call options owner exercised their five Call options, so the Covered Calls position was closed out early. The five Citigroup Call options expired worthless and the 500 shares were sold at the $37.50 strike price.
The overall performance results (including commissions) for this Citigroup Covered Calls position are as follows:
Covered Calls Net Investment: $18,558.35
= ($38.55 - $1.44) * 500 shares + $3.35 commission
Net Profit Components:
(a) Options Income: +$720.00
= ($1.44 * 500 shares)
(b) Dividend Income (Five Call options exercised early on the business day prior to the ex-div date): +$0.00
(c) Capital Appreciation (Citi shares assigned early on the last trading day prior to the ex-div date): -$525.00
+($37.50- $38.55) * 500 shares
