The buy/write transaction was:
5/7/2024 Bought 200 Target Corporation shares @ $160.06.
5/7/2024 Sold 2 TGT 5/24/2024 $150.00 Call options @ $11.99 per share.
5/14/2024 Ex-dividend of $1.10 per share.
5/24/2024 Continued this Target Corporation Covered Calls position with a rollout transaction by simultaneously buying-to-close 2 Target 5/24/2024 $150.00 Calls at $.01 per share and selling-to-open 2 6/21/2024 $148.00 Calls at $2.17 per share when the stock price was $145.48.
6/21/2024 2 TGT Calls expired out-of-the-money and the 200 Target shares remain in the Covered Calls Advisor Portfolio.
6/24/2024 Closed out this Covered Calls position by selling the 200 Target shares at $149.89 per share.
The overall performance result (including commission) for this Covered Calls position is as follows:
Covered Calls Net Investment: $29,615.34
= ($160.06 - $11.99) * 200 shares + $1.34 commission
Net Profit Components:
(a) Options Income: +$2,827.32
= ($11.99 -$.01 + $2.17) * 200 shares - $2.68 commissions
(b) Dividend Income: $220.00
= ($1.10 per share x 200 shares)
(c) Capital Appreciation (200 Target shares sold at $149.89 per share on 6/24/2024): -$2,034.00
+($149.89 stock sold price - $160.06 stock purchase price) * 200 shares
(c) Capital Appreciation (200 Target shares sold at $149.89 per share on 6/24/2024): -$2,034.00
+($149.89 stock sold price - $160.06 stock purchase price) * 200 shares
Total Net Profit: +$1,013.32
= (+$2,827.32 options income +$220.00 dividend income -$2,034.00 capital appreciation)
Absolute Return-on-Investment: +3.4%
= +$1,013.32/$29,615.34
Annualized Return-on-Investment: +26.0%
= (+$635.32/$29,615.34) * (365/48 days)
Jeff Partlow (The Covered Calls Advisor)
partlow@cox.net
