During this past month, the Covered Calls Advisor Portfolio closed a total of six positions. In addition, there were eleven Covered Calls positions with monthly expiration dates yesterday. All of these eleven positions expired out-of-the-money on yesterday's April 19th options expiration date (so those shares currently remain in the Covered Calls Advisor Portfolio).
The specific results for each closed position are summarized as follows:
- Five Covered Calls positions were closed out in-the-money on their weekly options expiration date during the past month as follows:
- KraneShares CSI China Internet ETF -- +2.3% absolute return-on-investment in 21 days (equivalent to a +40.5% annualized return-on-investment).
- Match Group Inc. -- +2.9% absolute return-on-investment in 29 days (equivalent to a +36.6% annualized return-on-investment).
- Merck & Company Inc. -- +1.3% absolute return-on-investment in 15 days (equivalent to a +31.0% annualized return-on-investment).
- Microsoft Corporation -- +1.3% absolute return-on-investment in 17 days (equivalent to a +27.9% annualized return-on-investment).
- Novo-Nordisk Global -- +2.3% absolute return-on-investment in 17 days (equivalent to a +49.5% annualized return-on-investment).
- One Covered Calls position was closed out by early assignment on the day prior to its ex-dividend date as follows: U.S. Bancorp -- +0.8% absolute return-on-investment in 8 days (equivalent to a +32.5% annualized return-on-investment).
- As mentioned above, all eleven Covered Calls positions closed out yesterday on their April 19th, 2024 monthly options expiration date with their stock price below the strike price, so the shares now remain in the Covered Calls Advisor Portfolio. Despite selling in-the-money Covered Calls positions that provide some downside protection, these 11 positions were not immune to the sharp 5.2% market decline so far in April, so their price declines took their prices below their respective strike prices. These positions are: 200 shares of Amdocs Ltd., 200 shares of Aptiv Corporation, 200 Euronet Worldwide Inc., 200 Globe Life Inc., 400 Halozyme Therapeutics Inc., 400 JD.com Inc., 300 Mondelez International Inc., 200 Netease Inc. ADR, 200 Oracle Corporation, 300 Schlumberger Ltd., and 500 Yum China Holdings Inc. 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. Since most of these companies have first quarter earnings reports upcoming in the next couple of weeks (and since I prefer to avoid holding positions through earnings report price volatility), I will likely be selling several of these companies and realizing losses in them. 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) 113 of 126 positions (89.7%) 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 +16.9% during the past year and the average holding period for these 126 closed positions was 20.0 days. In comparison, the benchmark S&P 500 has returned +19.5% 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
