The post when this Hershey Company Covered Calls position was originally established is here. As detailed below, the return-on-investment result for this Hershey Company Covered Calls position was +0.4% absolute
return in 7 days (equivalent to a +23.3% annualized
return-on-investment).
The Hershey Company (HSY) -- Covered Calls Position Closed by Early AssignmentThe simultaneous buy/write transaction was:
11/9/2023 Bought 200 The Hershey Company shares @ $188.39
11/9/2023 Sold 2 HSY November 24th, 2023 $182.50 Call options @ $6.69 per share
11/16/2023 The Hershey Company Call options owner exercised their two Call options, so the Covered Calls position was closed out early. The two HSY Call options expired worthless and the 200 Hershey shares were sold at the $182.50 strike price.
11/9/2023 Bought 200 The Hershey Company shares @ $188.39
11/9/2023 Sold 2 HSY November 24th, 2023 $182.50 Call options @ $6.69 per share
11/16/2023 The Hershey Company Call options owner exercised their two Call options, so the Covered Calls position was closed out early. The two HSY Call options expired worthless and the 200 Hershey shares were sold at the $182.50 strike price.
The overall performance results (including commissions) for this Hershey Company Covered Calls position are as follows:
Covered Calls Net Investment: $36,341.34
= ($188.39 - $6.69) * 200 shares + $1.34 commission
Net Profit:
(a) Options Income: +$1,366.66
= ($6.69 * 200 shares) - $1.34 commission
(b) Dividend Income (Two Call options exercised early on Nov. 15th, the last business day prior to the November 16th ex-div date): +$0.00
(c) Capital Appreciation (Hershey's stock assigned early): -$1,178.00
+($182.50 -$188.39) * 200 shares
+($182.50 -$188.39) * 200 shares
Total Net Profit (Two Hershey Call options exercised early): +$188.66
= (+$1,366.66 options income +$0.00 dividend income -$1,178.00 capital appreciation)
Absolute Return-on-Investment: +$0.4%
= +$162.66/$36,341.34
Annualized Return-on-Investment: +23.3%
= (+$162.66/$36,341.34) * (365/7 days)