Early Assignment of Mondelez International Inc. and U.S. Bancorp Covered Calls Positions

Early this morning, I was notified via email from my broker (Schwab) that my Covered Calls positions in Mondelez International Inc. (MDLZ) and U.S. Bancorp (USB) were closed out by early assignment yesterday which is the day before today's ex-dividend date for both companies.  There was less than $.05 per share time value remaining in the Call options for both companies, so the Call owners decided to exercise their Calls early to buy the stocks and also capture today's ex-dividend.  So, the Calls expired worthless and the stocks were sold at their respective strike prices with the following results:

1. Mondelez International Inc. (MDLZ) -- I had owned 300 MDLZ shares and sold three July 5th, 2024 $65.00 Calls and today's ex-dividend amount is $.425 per share.  The stock price closed in-the-money yesterday at $66.47.  This position achieved +0.7% absolute return (equivalent to +23.9% annualized return-on-investment) for the 10 days of this investment.  

2. U.S. Bancorp (USB) -- I had owned 400 USB shares and sold four July 12th, 2024 $38.00 Call options and today's ex-dividend amount is $.49 per share.  The stock price closed in-the-money yesterday at $39.47.  This position achieved +1.2% absolute return (equivalent to +46.8% annualized return-on-investment) for the 9 days of this investment.  

The original blog post details when both positions were established is here.

I welcome your questions or feedback at the email address below on anything related to the Covered Calls investing strategy.  

Best Wishes and Godspeed,

Jeff Partlow
The Covered Calls Advisor
partlow@cox.net