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)