Continuation of Covered Calls Position in KraneShares CSI China Internet ETF

The Covered Calls Advisor Portfolio has a Covered Calls position in the KraneShares CSI China Internet ETF (ticker KWEB) which expired out-of-the-money on its January 19th, 2024 options expiration date.  Today this position was continued by rolling out to the February 16th, 2024 monthly options expiration at the same $25.50 strike price by selling-to-open ten Calls at $0.46 per share.  The Implied Volatility of the Call options was 43.0 when this transaction was executed and the stock price was $24.80, which is slightly out-of-the-money compared with the $25.50 strike price.  

As detailed below, a potential outcome for this KraneShares CSI China Internet ETF is +3.5% absolute return-on-investment over 43 days (equivalent to +29.3% annualized-return-on-investment).  The transactions history of this KWEB Covered Calls position so far along with a potential return-on-investment result if the stock is assigned on the 2/16/2024 options expiration date is as follows:

 

KraneShares CSI China Internet ETF (KWEB) -- New Covered Calls Position 
The Buy/Write transaction was as follows:
1/4/2024 Bought 1,000 shares of CSI China Internet ETF @ $26.22 per share.  
1/4/2024 Sold 10 KWEB Jan. 19th, 2024 $25.50 Call options @ $1.14 per share. 
1/19/2024 KWEB price closed below the $25.50 strike price so the ten Call options expired and 1,000 KWEB shares remain in the Covered Calls Advisor Portfolio.

2/6/2024 Continued this KWEB Covered Calls position by selling 10 KWEB February 16th, 2024 $25.50 Call options @ $.46 per share. 

A possible overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position is as follows:
KWEB Covered Calls Net Investment: $25,086.70
= ($26.22 - $1.14) * 1,000 shares + $6.70 commission

Net Profit:
(a) Options Income: +$1,586.60
= ($1.14 + $.46) * 1,000 shares - $13.40 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 1,000 CSI China Internet ETF shares assigned at $25.50 strike price at expiration): -$720.00
+($25.50 - $26.22) * 1,000 shares

Total Net Profit Potential (If 1,000 CSI China Internet ETF shares assigned at $25.50 strike price at the 2/16/2024 options expiration date): +$866.60
= (+$1,586.60 options income +$0.00 dividend income -$720.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.5%
= +$866.60/$25,086.70
Potential Annualized Return-on-Investment: +29.3%
= (+$866.60/$25,086.70) * (365/43 days)