Last Friday, the Covered Calls positions in Abercrombie & Fitch Co. (ticker ANF) and Dell Technologies Inc. (ticker DELL) 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 300 shares of Abercrombie at $115.20 and the 300 shares of DELL at $100.20. The transactions history for these positions and their associated return-on-investment results are detailed below.
1. Abercrombie & Fitch Co. (ANF) -- Closed Out the Covered Calls Position
The Buy/Write limit order was executed as follows:
1/16/2025 Bought 300 shares of Abercrombie & Fitch Co. stock @ $128.35 per share.
1/16/2025 Sold 3 A&F January 31st, 2025 $120.00 Call options @ $10.37 per share.
1/31/2025 Three Call options expired out-of-the-money with stock at $119.38 per share and the 300 ANF shares remain in the Covered Calls Advisor Portfolio.
2/3/2025 Closed out this ANF Covered Calls position by selling the 300 remaining shares at $115.20.
The overall performance result (including commissions) for this Abercrombie & Fitch Co. Covered Calls position is as follows:
Stock Purchase Cost: $35,396.01
= ($128.35 - $10.37) *300 shares + $2.01 commission
Net Profit:
(a) Options Income: +$3,108.99
= ($10.37 *300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation: -$3,945.00
+($115.20 - $128.35) * 300 shares
Total Net Loss: -$836.01
= (+$3,108.99 options income +$0.00 dividend income - $3,945.00) capital appreciation
Absolute Return-on-Investment: -2.4%
= -$836.01/$35,396.01
Annualized Return-on-Investment: -47.9%
= (-$836.01/$35,396.01) * (365/18 days)
2. Dell Technologies Inc. (DELL) -- Closed Out the Covered Calls Position
The simultaneous buy/write transaction was:
1/14/2025 Bought 300 Dell Technologies Inc. shares @ $110.04.
1/14/2025 Sold 3 DELL 1/31/2025 $105.00 Call options @ $6.86 per share.
Note: the Implied Volatility of the Call options was 37.6 when this position was established.
1/22/2025 Upcoming quarterly ex-dividend of $.445 per share.
1/31/2025 Three Call options expired out-of-the-money with stock at $103.60 per share and the 300 DELL shares remain in the Covered Calls Advisor Portfolio.
2/3/2025 Closed out this DELL Covered Calls position by selling the 300 remaining shares at $100.20.
The overall performance results (including commissions) for this Dell Technologies Inc. Covered Calls position are as follows:
Covered Calls Cost Basis: $30,956.01
= ($110.04 - $6.86) * 300 shares + $2.01 commission
Net Profit Components:
(a) Options Income: +$2,055.99
= ($6.86 * 300 shares) - $2.01 commission
(b) Dividend Income: +$133.50
= ($.445 dividend per share x 300 shares)
(c) Capital Appreciation: -$2,952.00
+($100.20 - $110.04) * 300 shares
Total Net Loss: -$762.51
= (+$2,055.99 options income + $133.50 dividend income - $2,952.00 capital appreciation)
Absolute Return-on-Investment: -2.5%
= -$762.51/$30,956.01
Annualized Return-on-Investment: -45.0%
= (-$762.51/$30,956.01) * (365/20 days)
