Continuation of Covered Calls Positions in Aptiv PLC, Netease Inc. ADR, Oracle Corporation, and Schlumberger Ltd.

The Covered Calls positions in Aptiv PLC (ticker APTV), Netease Inc. ADR (NTES), Oracle Corporation (ORCL), and Schlumberger Ltd. (SLB) closed out-of-the-money at last Friday's monthly options expiration date.  So, the Calls expired and the shares remained in the Covered Calls Advisor Portfolio.  Today I decided to continue these four Covered Calls positions by selling Call options to roll out to the May 3rd, 2024 options expiration date for the Oracle, Netease, and SLB positions and to the May 17th, 2024 expiration for the Aptiv position. The transactions-to-date for these positions as well as the potential return-on-investment results if these positions are in-the-money and therefore assigned on their respective expiration dates are as follows:

1. Aptiv PLC (APTV) -- Continuation of Covered Calls Position

The buy/write transaction was:
3/14/2024 Bought 200 Aptiv PLC shares @ $77.04
3/14/2024 Sold 2 APTV 4/19/2024 $75.00 Call options @ $4.40 per share.  The Implied Volatility of these Calls was 31.0 when this position was estalished.
4/19/2024 200 Aptiv PLC shares closed out-of-the-money so 2 Calls expired and 200 Aptiv shares remain in the Covered Calls Advisor Portfolio.

4/23/2024 Continued Covered Calls position by selling 2 APTV 5/17/2024 Call options at the $72.50 strike price for $2.40 per share when the stock price was $70.65.

A possible overall performance result (including commissions) for this Aptiv Covered Calls position is as follows:
Aptiv Covered Calls Net Investment: $14,529.34
= ($77.04 - $4.40) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,357.32
= ($4.40 + $2.40) * 200 shares - $2.68 commissions
(b) Dividend Income: +$0.00
= ($0.00 dividends per share x 200 shares)
(c) Capital Appreciation (If APTV shares assigned at $72.50 strike price at expiration): -$908.00
+($72.50 - $77.04) * 200 shares

Total Net Profit (If options exercised on the 5/17/2024 options expiration date): +$449.32

= (+$1,357.32 options income +$0.00 dividend income -$908.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.1%

= +$449.32/$14,529.34

Potential Annualized Return-on-Investment (If 200 Aptiv PLC shares assigned at $72.50 at the 5/17/2024 options expiration): +17.6%

= (+$449.32/$14,529.34) * (365/64 days)

2. Netease Inc. ADR (NTES) -- Continuation of Covered Calls Position 

The Buy/Write transaction was as follows:
3/28/2024 Bought 200 shares of Netease Inc. @ $103.50 per share.  
3/28/2024 Sold 2 NTES April 19th, 2024 $100.00 Call options @ $5.78 per share.  The Implied Volatility of these Call options was 35.6 today when this transaction was executed and its Beta (1-year) is 1.02. 
4/19/2024 200 Netease shares closed out-of-the-money so 2 Calls expired and 200 NTES shares remain in the Covered Calls Advisor Portfolio.

4/23/2024 Continued Covered Calls position by selling 2 NTES 5/3/2024 Call options at the $97.00 strike price for $1.10 per share when the stock price was $93.53.

A possible overall performance result (including commissions) for this Netease Inc. ADR Covered Calls position is as follows:
Covered Calls Net Investment: $19,545.34
= ($103.50 - $5.78) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,373.32
= ($5.78 + $1.10) * 200 shares - $2.68 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 200 Netease Inc. shares assigned at $97.00 strike price at the May 3rd, 2024 options expiration date): -$1,300.00
+($97.00 strike price - $103.50 stock purchase price) * 200 shares

Total Net Profit Potential (If 200 Netease Inc. shares assigned at the $97.00 strike price at the 5/3/2024 options expiration date): +$73.32
= (+$1,373.32 options income +$0.00 dividend income -$1,300.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.4%
= +$73.32/$19,545.34
Potential Annualized Return-on-Investment: +2.9%
= (+$73.32/$19,545.34) * (365/47 days)

3. Oracle Corporation (ORCL) -- Continuation of Covered Calls Position

The buy/write transaction was:
4/2/2024 Bought 200 Oracle Corporation shares @ $124.00.
4/2/2024 Sold 2 ORCL 4/19/2024 $121.00 Call options @ $4.02 per share.
Note: the Implied Volatility of the Call options was 17.7 when this buy/write transaction was executed, which (as preferred) is above the 15.2 for VIX.
4/9/2024 Upcoming quarterly ex-dividend of $.40 per share
4/19/2024 200 Oracle Corp. shares closed out-of-the-money so 2 Calls expired and 200 Oracle shares remain in the Covered Calls Advisor Portfolio.
4/23/2024 Continued Covered Calls position by selling 2 Oracle Corp. 5/3/2024 Call options at the $117.00 strike price for $1.17 per share when the stock price was $115.16.

A possible overall performance result (including commissions) for this Covered Calls position are as follows:
Covered Calls Net Investment: $23,997.34
= ($124.00 - $4.02) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,035.32
= ($4.02 + $1.17) * 200 shares - $2.68 commissions
(b) Dividend Income: $80.00
= ($.40 dividend per share x 200 shares)
(c) Capital Appreciation (If shares assigned at $117.00 strike price at the 5/3/2024 options expiration date): -$1,400.00
+($117.00 - $124.00) * 200 shares

Total Net Loss: -$284.68

= (+$1,035.32 options income +$80.00 dividend income -$1,400.00 capital appreciation)

Potential Absolute Return-on-Investment (If ORCL shares assigned at $117.00 at the 5/3/2024 options expiration date): -1.2%

= -$284.68/$23,997.34

Potential Annualized Return-on-Investment: -14.0%

= (-$284.68/$23,997.34) * (365/31 days)

4. Schlumberger Ltd. (SLB) -- Continuation of Covered Calls Position

The net debit buy/write limit order was executed as follows:

3/26/2024 Bought 300 shares of SLB stock @ $54.08 per share.  
3/26/2024 Sold 3 SLB April 19th, 2024 $52.50 Call options @ $2.48 per share.  Note: the Implied Volatility of the Calls was 26.3 when this position was established.  
4/19/2024 300 SLB shares closed out-of-the-money so 3 Calls expired and 300 SLB shares remain in the Covered Calls Advisor Portfolio.
4/23/2024 Continued Covered Calls position by selling 3 SLB 5/3/2024 Call options at the $50.00 strike price for $.76 per share when the stock price was $49.65.

A possible overall performance result (including commissions) for this position if it is in-the-money on the options expiration date is as follows:
Covered Calls Net Investment: $15,482.01
= ($54.08 - $2.48) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$967.98
= ($2.48 + $.76) * 300 shares - $4.02 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If SLB stock is above the $50.00 strike price at the May 3rd options expiration date): -$1,224.00
= ($50.00 strike price - $54.08 stock purchase price) * 300 shares

Potential Total Net Loss (If SLB is in-the-money and therefore assigned at expiration): -$256.02
= (+$967.98 options income + $0.00 dividend income - $1,224.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 5/3/2024 options expiration date): -1.7% = -$256.02/$15,482.01

Potential Equivalent Annualized-Return-on-Investment: -15.9%
= (-$256.02/$15,482.01) * (365/38 days)

Jeff Partlow (The Covered Calls Advisor)

partlow@cox.net