Closed Out Covered Calls Position in Halliburton Company

The Covered Calls position in Halliburton Company (ticker HAL) had Call options which were scheduled to expire at market close today.  Halliburton stock closed yesterday at $35.78 which was slightly below today's $36.00 strike price.  The stock moved slightly above the $36.00 strike price in this morning's early trading at which time I decided to attempt to lock in an attractive profit if the remaining time value in the Covered Calls declined to only $.10 per share.  So, I placed a Covered Calls unwind limit price order at $35.90.  After about 15 minutes, this order was executed at a simultaneous $36.16 stock sell-to-close price and at a $.26 buy-to-close Call options price (i.e. a net credit of $35.90 per share). 

As detailed below, the results for this Halliburton Company Covered Calls position were +4.8% absolute return-on-investment over 37 days (equivalent to +47.7% annualized-return-on-investment).  

Halliburton Company (HAL) -- Closed Out Covered Calls Position by Decision

The original buy/write transaction was:

11/29/2023 Bought 500 Halliburton Co. shares @ $37.19.
11/29/2023 Sold 5 HAL 12/15/2023 $36.00 Call options @ $1.64.
12/6/2023 Quarterly ex-dividend of $.16 per share
12/15/2023 5 HAL $36.00 Call options expired out-of-the-money and 500 Halliburton shares remain in the Covered Calls Advisor Portfolio

12/18/2023 Continued this HAL Covered Calls position by selling 5 January 5th, 2024 $36.00 Call options at $1.23 per share.

1/5/2024 Unwound this HAL Covered Calls position by a simultaneous selling of 500 HAL shares at $36.16 per share and buying eight 1/5/2024 $36.00 Calls at $.26 per share -- a net credit of $35.90 per share.

The overall performance result (including commissions) for this Halliburton Co. Covered Calls position is as follows:
Covered Calls Net Investment: $17,778.35
= ($37.19 - $1.64) * 500 shares + $3.35 commissions

Net Profit Components:

(a) Options Income: +$1,294.95
= ($1.64 + $1.23 - $.26) * 500 shares - $10.05 commissions
(b) Dividend Income (12/6/2023 ex-dividend): +$80.00
= ($.16 dividend per share x 500 shares)
(c) Capital Appreciation (HAL shares originally bought at $37.19 per share and closed out by selling on 1/5/2024 at $36.16): -$515.00
+($36.16 -$37.19) * 500 shares

Total Net Profit: +$859.95

= (+$1,294.95 options income + $80.00 dividend income - $515.00 capital appreciation)

Absolute Return-on-Investment: +4.8%

= +$859.95/$17,778.35

Annualized Return-on-Investment: +47.7%

= (+$859.95/$17,778.35) * (365/37 days)