Established Covered Calls in Nvidia Corporation

This morning a short-term Covered Calls position was established in Nvidia Corporation (ticker NVDA). Three hundred shares were purchased at $117.96 and three August 16th, 2024 Call options were sold at the $110.00 strike price at $11.12 per share--a buy/write net debit transaction of $106.84 per share which provides a $3.16 per share time value profit potential.  As I prefer, the next quarterly earnings report on August 28th is after the August 16th options expiration date.  The average target price of the Wall Street analysts following Nvidia is $135.53 which is +14.5% above today's stock purchase price.

As detailed below, a potential return-on-investment result is +3.0% absolute return-on-investment (equivalent to +46.8% annualized return-on-investment for the next 23 days) if the Nvidia share price is in-the-money (i.e. above the $110.00 strike price) and therefore assigned on its August 16th, 2024 options expiration date.

 
Nvidia Corporation (NVDA) -- New Covered Calls Position

The Buy/Write transaction was as follows:
7/24/2024 Bought 300 shares of Nvidia Corporation @ $117.96 per share.  
7/24/2024 Sold 3 NVDA  August 16th, 2024 $110.00 Call options @ $11.12 per share.  The Implied Volatility of these Call options was very high at 51.5 and the probability that the Calls will expire in-the-money on the options expiration date was 69.0% when this transaction was executed today. 

A possible overall performance result (including commissions) for this Nvidia Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $32,054.01
= ($117.96 - $11.12) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$3,333.99
= ($11.12 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Nvidia shares assigned at the $110.00 strike price at expiration): -$2,388.00
+($110.00 - $117.96) * 300 shares

Total Net Profit Potential (If 300 Nvidia shares assigned at $110.00 strike price at expiration): +$945.99
= (+$3,333.99 options income + $0.00 dividend income - $2,388.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.0%
= +$945.99/$32,054.01
Potential Annualized Return-on-Investment: +46.8%
= (+$945.99/$32,054.01) * (365/23 days)

Established Covered Calls in Delta Air Lines Inc.

This afternoon, a buy/write limit order was entered in Delta Air Lines Inc. (ticker DAL) to buy 400 shares and simultaneously sell 4 Call options at the August 9th, 2024 weekly options expiration date and at the $43.00 strike price. The net debit limit price for my order was $42.34 and this order was executed at 2:51PM ET when 400 shares were purchased at $44.15 and 4 August 9th, 2024 Call options were sold for $1.81 per share.  Therefore, a maximum potential time value profit of $.66 per share = [$1.81 options premium - ($44.15 stock price - $43.00 strike price)] is available for this position.  

This position uses the Covered Calls Advisor's Dividend Capture Strategy (see here) since Delta has an upcoming quarterly ex-dividend of $.15 per share (a 1.4% annual dividend yield) on July 30th which is prior to the August 9th options expiration date.  This dividend is included in the detailed return-on-investment calculations below.  Either an early assignment on the last trading day prior to the ex-dividend date or on the August 9th options expiration date would be desirable to the Covered Calls Advisor given the potential annualized return on investments for either outcome.  Importantly to the Covered Calls Advisor, there is no quarterly earnings report prior to the options expiration date since the next earnings report on October 10th, 2024 is after the August 9th, 2024 options expiration date.

As shown on the table at the bottom of this post, all nine criteria of the Dividend Capture Strategy are met with this position.  Even if the Delta Air Lines Inc. stock price declines somewhat during the next 18 days until the options expiration date, if the stock closes above the $43.00 strike price, then a satisfactory annualized-return-on-investment of +38.5% will be achieved.  

The average Target Price of the analysts covering Delta Air Lines is $60.31 which is +36.6% above today's purchase price; and all 19 analysts have a "Strong Buy" rating.  A primary reason for establishing this position was that Delta was highly ranked in my Stock Rover "Analysts Picks" stock screener since all 15 criteria in that screener are currently achieved by Delta (see chart below):  

 

As detailed below, two potential return-on-investment results are: 

•  +1.5% absolute return (equivalent to +70.4% annualized return-on-investment for the next 8 days) if the stock is assigned early (on the last business day prior to the July 30th, 2024 ex-dividend date); or  
  

• +1.9% absolute return (equivalent to +38.5% annualized return-on-investment over the next 18 days) if the stock is assigned on the August 9th, 2024 options expiration date.

Delta Air Lines Inc. (DAL) -- New Covered Calls Position
The buy/write transaction was:
7/22/2024 Bought 400 Delta Air Lines Inc. shares @ $44.15.
7/22/2024 Sold 4 Delta 8/9/2024 $43.00 Call options @ $1.81 per share.
7/30/2024 Upcoming quarterly ex-dividend of $.15 per share.

Two possible overall performance results (including commissions) for this Delta Air Lines Inc. Covered Calls position are as follows:
Covered Calls Net Investment: $16,938.68
= ($44.15 - $1.81) * 400 shares + $2.68 commission

Net Profit Components:
(a) Options Income: +$721.32
= ($1.81 * 400 shares) - $2.68 commission
(b) Dividend Income (If Delta Air Lines Call options exercised early on July 29th, 2024, the last business day prior to the July 30th ex-div date): +$0.00; or
(b) Dividend Income (If Delta stock assigned at the August 9th, 2024 options expiration date): +$60.00
= ($.15 dividend per share x 400 shares)

(c) Capital Appreciation (If Delta's Call options assigned early on July 30th): -$460.00

+($43.00 strike price - $44.15 stock purchase price) * 400 shares; or
(c) Capital Appreciation (If shares assigned at $43.00 strike price at the August 9th options expiration): -$460.00
+($43.00 - $44.15) * 400 shares

1. Total Net Profit [If option exercised early (business day prior to the July 30th, 2024 ex-dividend date)]: +$261.32

= (+$721.32 options income +$0.00 dividend income -$460.00 capital appreciation); or

2. Total Net Profit (If Delta's shares assigned at $43.00 at the August 9th, 2024 expiration): +$321.32

= (+$721.32 options income +$60.00 dividend income -$460.00 capital appreciation)

1. Potential Absolute Return-on-Investment [If option exercised on business day prior to ex-dividend date]: +1.5%

= +$261.32/$16,938.68

Potential Annualized Return-on-Investment (If option exercised early): +70.4%

= (+$261.32/$16,938.68) * (365/8 days); or

2. Potential Absolute Return-on-Investment (If Delta's shares assigned on August 9th options expiration date): +1.9%

= +$321.32/$16,938.68

Potential Annualized Return-on-Investment (If Delta's shares assigned at $43.00 at the August 9th, 2024 expiration): +38.5%

= (+$321.32/$16,938.68) * (365/18 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy. As shown below, all nine criteria are achieved for this Delta Air Lines Inc. Covered Calls position.

Continuation of Covered Calls Position in KraneShares CSI China Internet ETF

Last Friday, the Covered Calls positions in KraneShares CSI China Internet ETF (ticker KWEB) closed out-of-the-money. So, the Calls expired and shares remained in the Covered Calls Advisor Portfolio.  This morning, I decided to continue this Covered Calls position by selling Call options to roll out two weeks to the August 2nd, 2024 weekly options expiration date. The transactions-to-date as well as the potential return-on-investment results if this position is assigned on the options expiration date is as follows:

KraneShares CSI China Internet ETF (KWEB) -- Continuation of Covered Calls Position 

The Buy/Write transaction was as follows:
5/20/2024 Bought 1,000 shares of CSI China Internet ETF @ $31.90 per share.  
5/20/2024 Sold 10 KWEB June 21st, 2024 $30.00 Call options @ $2.44 per share.  The Implied Volatility of the Calls was 31.2 when this position was established.  

6/21/2024 Ten KWEB Calls expired out-of-the-money and the 1,000 KWEB shares remain in the Covered Calls Advisor Portfolio.

6/24/2024 Continued this Covered Calls position by selling-to-open 10 KWEB 7/19/2024 $30.00 Call options at $.33 when the KWEB price was $28.60 per share against the 1,000 KWEB shares owned.

7/19/2024 Ten KWEB Calls expired out-of-the-money and the 1,000 KWEB shares remain in the Covered Calls Advisor Portfolio.

7/22/2024 Continued this Covered Calls position by selling-to-open 10 KWEB 8/2/2024 $29.00 Call options at $.17 when the KWEB price was $27.70 per share against the 1,000 KWEB shares owned.

 

A possible overall performance result (including commissions) for this CSI China Internet ETF Covered Calls position if it is in-the-money on its 8/2/2024 options expiration date is as follows: 

KWEB Covered Calls Net Investment: $29,466.70

= ($31.90 - $2.44) * 1,000 shares + $6.70 commission

Net Profit:
(a) Options Income: +$2,756.60
= ($2.44 + $.33 + $.17) * 1,000 shares - $20.10 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 1,000 CSI China Internet ETF shares assigned at $29.00 strike price at the 8/2/2024 options expiration date): -$2,900.00
+($29.00 strike price - $31.90 shares purchase price) * 1,000 shares

Total Net Profit Potential (If 1,000 CSI China Internet ETF shares assigned at the $29.00 strike price at expiration): - $143.40
= (+$2,756.60 options income + $0.00 dividend income - $2,900.00 capital appreciation)

Potential Absolute Return-on-Investment: -0.5%
= -$143.40/$29,466.70
Potential Annualized Return-on-Investment: -2.4%
= (-$143.40/$29,466.70) * (365/74 days)

Covered Calls Position Closed in The Walt Disney Company

Last Friday, the Covered Calls position in The Walt Disney Company (ticker DIS) closed out-of-the-money at $95.74 which was below its $100.00 strike price.  Today I decided to close out this position by selling the 200 shares. The transactions history for this Disney Covered Calls position and its associated return-on-investment results are detailed below.

The Walt Disney Company (DIS) -- Covered Calls Position Closed by Decision

The buy/write transaction was:
7/2/2024 Bought 200 The Walt Disney Company shares @ $97.58
7/2/2024 Sold 2 DIS 7/19/2024 $100.00 Call options @ $1.03 per share.
7/8/2024 Ex-dividend of $.45 per share.

7/19/2024 Two Disney Call options expired out-of-the-money at $95.74 per share and the 200 Disney shares remain in the Covered Calls Advisor Portfolio.

7/22/2024 Closed out this Disney Covered Calls position by selling the 200 remaining shares at $94.42. 

The overall performance results (including commissions) for this Disney Covered Calls position are as follows:
Covered Calls Net Investment: $19,311.34
= ($97.58 - $1.03) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$204.66
= ($1.03 * 200 shares) - $1.34 commission
(b) Dividend Income:  +$90.00
= ($.45 dividends per share x 200 shares)
(c) Capital Appreciation (DIS stock sold at $94.42): -$632.00
+($94.42 selling price - $97.58 stock purchase price) * 200 shares

Total Net Profit: -$337.34

= (+$204.66 options income +$90.00 dividend income -$632.00 capital appreciation)

Absolute Return-on-Investment: -1.7%

= (-$337.34/$19,311.34)

Equivalent Annualized Return-on-Investment: -31.9%

= (-$337.34/$19,311.34) * (365/20 days)

Covered Calls Position Closed in Lear Corporation

Last Friday, the Covered Calls position in Lear Corporation (ticker LEA) closed out-of-the-money at $118.19 which was below its $120.00 strike price.  This morning, when Lear's stock price had increased to $119.20 and also because it has an upcoming quarterly earnings report this week on Thursday (and also since I prefer to avoid holding companies because of the stock price volatility on those days), I decided to close out this position by selling the 200 shares. The transactions history for this Lear Corp. Covered Calls position and its associated return-on-investment results are detailed below.

Lear Corporation (LEA) -- Covered Calls Position Closed Out by Decision
The buy/write transaction was:
5/23/2024 Bought 200 Lear Corporation shares @ $123.92.
5/23/2024 Sold 2 LEA 6/21/2024 $120.00 Call options @ $5.20 per share.
6/6/2024 Ex-dividend of $.77 per share.

6/19/2024 2 Lear Calls expired out-of-the-money and the 200 Lear Corp. shares remain in the Covered Calls Advisor Portfolio.

6/24/2024 Continued this Covered Calls position by selling-to-open 2 Lear 7/19/2024 $120.00 Call options at $2.45 when the stock price was $118.34 per share against the 200 Lear shares owned.

7/19/2024 Two Lear Call options expired out-of-the-money at $118.19 per share and the 200 Lear shares remain in the Covered Calls Advisor Portfolio.

7/22/2024 Closed out this Lear Corp. Covered Calls position by selling the 200 remaining shares at $119.20. 

The overall performance result (including commission) for this Covered Calls position is as follows:

Covered Calls Net Investment: $23,745.34
= ($123.92 - $5.20) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,527.32
= ($5.20 + $2.45) * 200 shares - $2.68 commissions
(b) Dividend Income: $154.00

= ($.77 per share x 200 shares)
(c) Capital Appreciation (Lear shares sold at $119.20): -$944.00
+($119.20 stock selling price - $123.92 stock purchase price) * 200 shares

Total Net Profit: +$737.32

= (+$1,527.32 options income +$154.00 dividend income -$944.00 capital appreciation)

Absolute Return-on-Investment: +3.1%

= +$737.32/$23,745.34

Annualized Return-on-Investment: +18.9%

= (+$737.32/$23,745.34) * (365/60 days)

Monthly Options Expiration Results through July 19th, 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 June 21st, 2024 options expiration through last Friday's July 19th, 2024 monthly options expiration date.  

During this past month, the Covered Calls Advisor Portfolio held a total of eight positions that were closed out.  Six positions were closed out at a profit and two positions were closed at a loss.   

The specific results for each position are summarized as follows: 

• One Covered Calls position expired in-the-money (stock price above the strike price) on last Friday's July 19th, 2024 monthly options expiration date as follows: 

1. CBOE Capital Markets Inc. -- +2.3% absolute return-on-investment in 65 days (equivalent to a +12.9% annualized return-on-investment).

• One Covered Calls position expired in-the-money on its weekly options expiration date during the past month as follows:

1. UnitedHealth Group Inc. -- +1.1% absolute return-on-investment in 16 days (equivalent to a +25.0% annualized return-on-investment).

• Two Covered Calls positions were closed out by early assignment on the last trading day prior to their ex-dividend dates as follows: 

1. Mondelez International -- +0.7% absolute return-on-investment in 10 days (equivalent to a +23.9% annualized return-on-investment).
2. U.S. Bancorp -- +1.2% absolute return-on-investment in 9 days (equivalent to a +46.8% annualized return-on-investment).

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

1. Las Vegas Sands Corporation -- +0.7% absolute return-on-investment in 20 days (equivalent to a +13.5% annualized return-on-investment).
2. Molson Coors Brewing -- -5.5% absolute return-on-investment in 35 days (equivalent to a -57.7% annualized return-on-investment).
3. Schlumberger Ltd.-- -2.0% absolute return-on-investment in 111 days (equivalent to a -6.6% annualized return-on-investment).
4. Target Corporation -- +3.4% absolute return-on-investment in 48 days (equivalent to a +26.0% annualized return-on-investment).

During the past year (last 12 months) 97 of 114 positions (85.1%) in the Covered Calls Advisor Portfolio (CCAP) were closed out at a profit.  The Covered Calls Advisor Portfolio weighted average annualized-return-on-investment was +7.1% during the past year and the average holding period for these 114 closed positions was 23.2 days.  

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

Established Covered Calls Position in Dell Technologies Inc.

A Covered Calls position was established in Dell Technologies Inc. (DELL) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $126.70 was executed. Two hundred shares were purchased at $134.00 and two August 2nd, 2024 in-the-money Call options were sold at $7.30 at the $130.00 strike price.  In addition, there is an upcoming ex-dividend of $.445 per share (1.3% annual dividend yield) on July 23rd which is included in the potential annualized-return-on-investment results detailed below.  The Implied Volatility of the Calls was 40.3 and the probability of the Calls expiring in-the-money on the August 2nd options expiration date was 62.1% when this position was established.  Also as desired, the next quarterly earnings report on August 29th is after the August 2nd options expiration date.  The current average target price by the 16 analysts covering Dell is $159.93 which is +19.4% above today's stock purchase price.

The potential return-on-investment result for this Dell Covered Calls position is: +3.0% absolute return-on-investment (equivalent to +63.3% annualized return-on-investment for the next 17 days) if the stock price is in-the-money (i.e. above the $130.00 strike price) on the August 2nd, 2024 options expiration date.

Dell Technologies Inc. (DELL) -- New Covered Calls Position

The buy/write transaction was:
7/16/2024 Bought 200 Dell Technologies Inc. shares @ $134.00
7/16/2024 Sold 2 DELL 8/2/2024 $130.00 Call options @ $7.30 per share.
7/23/2024 Ex-dividend of $.445 per share.

A possible overall performance result (including commissions) for this DELL Covered Calls position is as follows:
Covered Calls Net Investment: $25,341.34
= ($134.00 - $7.30) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$1,458.66
= ($7.30 * 200 shares) - $1.34 commission
(b) Dividend Income:  +$89.00
= ($.445 dividends per share x 200 shares)
(c) Capital Appreciation (If Dell stock price is above the $130.00 strike price on the 8/2/2024 options expiration date): -$800.00

= ($130.00 stock selling price on expiration date - $134.00 stock purchase price) x 200 shares

Total Net Profit (If stock price is above the $130.00 strike price on the 8/2 options expiration date): +$747.66

= (+$1,458.66 options income +$89.00 dividend income -$800.00 capital appreciation)

Potential Absolute Return-on-Investment (If stock price increases to above the $130.00 strike price on the 8/2 options expiration date): +3.0%

= (+$747.66/$25,341.34)

Potential Equivalent Annualized Return-on-Investment: +63.3%

= (+$747.66/$25,341.34) * (365/17 days)

Closed Covered Calls Positions in Las Vegas Sands Corporation and Schlumberger Ltd.

Last Friday, the Covered Calls positions in Las Vegas Sands Corporation (ticker LVS) and Schlumberger Ltd. (now named SLB and also with ticker SLB) closed out-of-the-money, so their Call options expired and their shares remained in the Covered Calls Advisor Portfolio.  Today I decided to close out both positions by selling the 400 shares of LVS at $42.76 and the 300 shares of SLB at $48.12. The transactions history for these positions and their associated return-on-investment results are detailed below.

1. Las Vegas Sands Corporation (LVS) -- Covered Calls Position Closed Out 

The Buy/Write transaction was as follows:
6/25/2024 Bought 400 shares of Las Vegas Sands Corporation @ $44.49 per share.  
6/25/2024 Sold 4 LVS July 12th, 2024 $43.00 Call options @ $2.05 per share.  The Implied Volatility of these Call options was 27.5 and the probability that the Calls will expire in-the-money on the options expiration date was 70.7% when this transaction was executed today.

7/12/2024 Four Call options expired out-of-the-money at $42.85 per share and the 400 LVS shares remain in the Covered Calls Advisor Portfolio.

7/15/2024 Closed out this LVS Covered Calls position by selling the 400 remaining shares at $42.76. 

The overall performance result (including commissions) for this Las Vegas Sands Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $16,978.68
= ($44.49 - $2.05) * 400 shares + $2.68 commission

Net Profit:
(a) Options Income: +$817.32
= ($2.05 * 400 shares) - $2.68 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (400 Las Vegas Sands Corporation shares sold at $42.76 per share): -$692.00
+($42.76 - $44.49) * 400 shares

Total Net Profit: +$125.32
= (+$817.32 options income +$0.00 dividend income -$692.00 capital appreciation)

Absolute Return-on-Investment: +0.7%
= +$125.32/$16,978.68
Annualized Return-on-Investment: +13.5%
= (+$125.32/$16,978.68) * (365/20 days)

2. Schlumberger Ltd. (SLB) -- Covered Calls Position Closed Out
The buy/write transaction was:

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.

5/3/2024 Three SLB Calls closed out-of-the-money at $47.77 on their options expiration date, so the Call expired and 300 SLB shares remain in the Covered Calls Advisor Portfolio.

5/6/2024 This SLB Covered Calls position was continued by selling 3 May 17th, 2024 $50.00 Calls at $.27 per share when the stock was trading at $48.25. 

5/17/2024 Rolled out the 3 SLB 5/17/2024 $50.00 Calls to 3 6/21/2024 $50.00 Calls at a net credit of $.67 per share.
6/5/2024 Upcoming ex-dividend of $.275 per share. 

6/19/2024 Three SLB Calls expired out-of-the-money and the 300 SLB shares remain in the Covered Calls Advisor Portfolio.

6/24/2024 Continued this Covered Calls position by selling-to-open 3 SLB 7/12/2024 $48.00 Call options at $.48 when the stock price was $46.76 per share against the 300 SLB shares owned.

7/12/2024 Three Call options expired out-of-the-money at $46.38 per share and the 300 SLB shares remain in the Covered Calls Advisor Portfolio.

7/15/2024 Closed out this SLB Covered Calls position by selling the 300 remaining shares at $48.12. 

The overall performance result (including commissions) for this position 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: +$1,393.95
= ($2.48 + $.76 + $.27 -$.01 + $.70 + $.48) * 300 shares - $10.05 commissions
(b) Dividend Income: +$82.50
= $.275 per share x 300 shares
(c) Capital Appreciation (300 SLB shares sold at $48.12 per share): -$1,788.00
= ($48.12 strike price - $54.08 stock purchase price) * 300 shares

Total Net Profit: -$311.55
= (+$1,393.95 options income + $82.50 dividend income - $1,788.00 capital appreciation)

Absolute Return-on-Investment: -2.0% = -$311.55/$15,482.01

Equivalent Annualized-Return-on-Investment: -6.6%
= (-$311.55/$15,482.01 * (365/111 days)

Jeff Partlow (The Covered Calls Advisor)
partlow@cox.net

 

Established Covered Calls Position in The Walt Disney Company

A Covered Calls position was established in The Walt Disney Company (DIS) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $96.55 was executed. Two hundred shares were purchased at $97.58 and two July 19th, 2024 out-of-the-money Call options were sold at $1.03 at the $100.00 strike price.  In addition, there is an upcoming semi-annual ex-dividend of $.45 per share on July 8th which is included in the potential annualized-return-on-investment results detailed below.  Also as desired, the next quarterly earnings report on August 7th is after the July 19th options expiration date.  The current average target price by the 27 analysts covering Disney is $127.63 which is +30.8% above today's stock purchase price.

Two potential return-on-investment results for this Disney Covered Calls position are: (1) +1.5% absolute return-on-investment (equivalent to +32.8% annualized return-on-investment for the next 17 days) if the stock price is unchanged at $97.58 on the options expiration date; and (2) +4.0% absolute return-on-investment (equivalent to +86.6% annualized return-on-investment for the next 17 days) if the stock price increases and is in-the-money (i.e. above the $100.00 strike price) on the July 19th, 2024 options expiration date.

The Walt Disney Company (DIS) -- New Covered Calls Position

The buy/write transaction was:
7/2/2024 Bought 200 The Walt Disney Company shares @ $97.58
7/2/2024 Sold 2 DIS 7/19/2024 $100.00 Call options @ $1.03 per share.
7/8/2024 Ex-dividend of $.45 per share.

Two possible overall performance results (including commissions) for this Disney Covered Calls position are as follows:
Covered Calls Net Investment: $19,311.34
= ($97.58 - $1.03) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$204.66
= ($1.03 * 200 shares) - $1.34 commission
(b) Dividend Income:  +$90.00
= ($.45 dividends per share x 200 shares)
(c) Capital Appreciation (If DIS stock price unchanged at $97.58 on the 7/19/2024 options expiration date): +$0.00
+($97.58 price unchanged on options expiration date - $97.58 stock purchase price) * 200 shares; OR

(c) Capital Appreciation (If DIS stock price is above the $100.00 strike price on the 7/19/2024 options expiration date): $484.00

= ($100.00 stock selling price on expiration date - $97.58 stock purchase price) x 200 shares

1. Total Net Profit (If stock price unchanged on the 7/19/2024 options expiration date): +$294.66

= (+$204.66 options income +$90.00 dividend income +$0.00 capital appreciation); OR

2. Total Net Profit (If stock price increases to above the $100.00 strike price on the 7/19 options expiration date): +$778.66

= (+$204.66 options income +$90.00 dividend income +$484.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If stock price unchanged at $97.58 on the 7/19/2024 options expiration date): +1.5%

= (+$294.66/$19,311.34)

Potential Equivalent Annualized Return-on-Investment: +32.8%

= (+$294.66/$19,311.34) * (365/17 days); OR

2. Potential Absolute Return-on-Investment (If stock price increases to above the $100.00 strike price on the 7/19 options expiration date): +4.0%

= (+$778.66/$19,311.34)

Potential Equivalent Annualized Return-on-Investment: +86.6%

= (+$778.66/$19,311.34) * (365/17 days)

Continuation of Covered Call Position in CBOE Global Markets Inc.

The Covered Calls Advisor Portfolio has a Covered Call position in CBOE Global Markets Inc. (ticker CBOE) at the $175.00 strike price which expired out-of-the-money on its Friday, 6/21/2024 options expiration date.  Today this position was continued by rolling out to the July 19th, 2024 monthly options expiration at the $172.50 strike price by selling-to-open one Call at $2.70 per share when the price of CBOE was $171.47.  

As detailed below, a potential outcome for this CBOE Global Markets Inc. investment if the stock is in-the-money and therefore assigned on the options expiration date is +2.3% absolute return-on-investment over 65 days (equivalent to +12.9% annualized-return-on-investment) if the stock closes above the $34.00 strike price on the May 10th, 2024 options expiration date.  The transactions history of this APA Covered Calls position to-date along with a potential return-on-investment result if the stock is assigned on the May 10th, 2024 options expiration date is as follows:

CBOE Global Markets Inc. (CBOE) -- New Covered Call Position
The buy/write transaction was:
5/15/2024 Bought 100 CBOE shares @ $178.50
5/15/2024 Sold 1 CBOE 6/21/2024 $175.00 Call option @ $6.70.  The Implied Volatility of the Call option was 18.4 when this transaction occurred.
5/30/2024 Quarterly ex-dividend of $.55 per share
6/21/2024 CBOE stock price was below the $175.00 strike price, so the Call expired and the 100 CBOE shares remained in the Covered Calls Advisor Portfolio.
7/1/2024 Continued this CBOE Covered Call position by selling one July 19th, 2024 $172.50 Call option @ $2.70 per share when the stock was trading today at $171.47. 

A possible overall performance result (including commissions) for this CBOE Covered Call position is as follows:
Covered Call Net Investment: $17,180.67
= ($178.50 - $6.70) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$938.66
= ($6.70 + $2.70) * 100 shares - $1.34 commissions
(b) Dividend Income ($.55 ex-dividend on 5/30/2024): +55.00
(c) Capital Appreciation (If shares assigned at $172.50 strike price at options expiration): -$600.00 = +($172.50 - $178.50) * 100 shares

Total Net Profit (If CBOE shares assigned at $172.50 at the July 19th expiration): +$393.66

= (+$938.66 option income +$55.00 dividend income -$600.00 capital appreciation)

Absolute Return-on-Investment (If CBOE shares assigned at $172.50 at the July 19th, 2024 options expiration date): +2.3%

= +$393.66/$17,180.67

Equivalent Annualized Return-on-Investment: +12.9%

= (+$393.66/$17,180.67) * (365/65 days)