Monthly Options Expiration Results through February 16th, 2024

Each month after the monthly options expiration date, this summary report provides the results on all positions that have been closed out during the past month (i.e. since the prior month's options expiration date). So this post covers the period from the day after last month's January 19th, 2024 options expiration through yesterday's February 16th, 2024 monthly options expiration date.  

During this past month, the Covered Calls Advisor Portfolio closed a total of fourteen positions.  Twelve positions were closed out at a profit and two positions were closed out at a loss.  In addition, three Covered Calls expired out-of-the-money on yesterday's monthly options expiration date (so those shares currently remain in the Covered Calls Advisor Portfolio).   

The specific results for each position are summarized as follows: 

• Five Covered Calls positions were closed out when their Call options expired in-the-money (stock price above the strike price) on yesterday's February 16th, 2024 monthly options expiration date as follows:

1. Halozyme Therapeutics Inc. -- +7.0% absolute return-on-investment in 44 days (equivalent to a +57.7% annualized return-on-investment). 
2. United Therapeutics Corporation -- +1.4% absolute return-on-investment in 21 days (equivalent to a +24.6% annualized return-on-investment). 
3. Match Group Inc. -- +1.7% absolute return-on-investment in 16 days (equivalent to a +37.8% annualized return-on-investment).
4. Wells Fargo Bank N.A. -- +2.1% absolute return-on-investment in 21 days (equivalent to a +36.6% annualized return-on-investment).
5. Lamb Weston Holdings Inc. -- +1.4% absolute return-on-investment in 21 days (equivalent to a +24.6% annualized return-on-investment).

• Five Covered Calls positions were closed out by early decision as follows:

1. Aptiv Corporation -- +3.3% absolute return-on-investment in 18 days (equivalent to a +66.7% annualized return-on-investment).
2. Freeport McMoRan Copper and Gold Inc. -- -1.6% absolute return-on-investment in 19 days (equivalent to a -31.3% annualized return-on-investment).
3. APA Corporation -- +0.0% absolute return-on-investment in 21 days (equivalent to a +0.7% annualized return-on-investment).
4. CVS Health Corporation -- -4.8% absolute return-on-investment in 15 days (equivalent to a -117.7% annualized return-on-investment).
5. Las Vegas Sands Corporation -- +1.3% absolute return-on-investment in 11 days (equivalent to a +41.8% annualized return-on-investment).

• Three Covered Calls positions were closed out early when the Call owners decided to exercise their right to close out their options prior to these companies' ex-dividend date.  So, the three Covered Calls positions were closed out. The Calls expired and the shares were sold at their respective strike prices with the following results: 

1. D.R. Horton Inc. -- +0.8% absolute return-on-investment in 7 days (equivalent to a +40.6% annualized return-on-investment).
2. TJX Companies Inc. -- +0.7% absolute return-on-investment in 9 days (equivalent to a +29.3% annualized return-on-investment).
3. Aflac Inc. -- +0.6% absolute return-on-investment in 6 days (equivalent to a +34.9% annualized return-on-investment).

• One Covered Calls position was closed out in-the-money on its weekly options expiration date during the past month as follows:  EOG Resources Inc. -- +1.7% absolute return-on-investment in 17 days (equivalent to a +37.3% annualized return-on-investment).

• Three Covered Calls positions closed out-of-the-money yesterday on their February 16th, 2024 monthly options expiration date, so the Call options expired and the shares now remain in the Covered Calls Advisor Portfolio.  Three hundred shares of Schlumberger Ltd. closed at $48.57 per share which was below its $51.00 strike price.  Two hundred shares of Oshkosh Corporation closed at $108.65 which was below its $110.00 strike price.  One thousand shares of KraneShares CSI China Internet ETF shares closed at $25.41 which was below its $25.50 strike price. Next week, decisions will be made to either close out the positions by selling the shares or to continue the Covered Calls positions by selling future Call options against the shares currently held.  As always, the details of all transactions-to-date will be posted on this blog site on the same day the transactions occur.

During the past year (last 12 months) 114 of 127 positions (89.8%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit.  The Covered Calls Advisor Portfolio weighted average annualized-return-on-investment (aroi) was +14.3% during the past year and the average holding period for these 127 closed positions was 19.9 days.  In comparison, the benchmark S&P 500 has returned +20.7% during the same prior one-year period. 

This Covered Calls Advisor blog is available to anyone interested in learning about implementing a successful Covered Calls investing strategy.  As always, I also encourage you to email me at partlow@cox.net any time you would like my feedback on your Covered Call position ideas or your questions on anything related to the Covered Calls investing strategy.

 

Best Wishes,

Jeff Partlow
Covered Calls Advisor
partlow@cox.net