Signet Jewelers Ltd. (SIG) -- Covered Calls Position Closed Out
The simultaneous buy/write transaction today was as follows:
10/20/2025 Bought 200 Signet Jewelers shares @ $104.43
10/20/2025 Sold 2 Signet 10/31/2025 $100.00 Call options @ $5.75 per share
Note: the Implied Volatility of the Calls was 45.1 when this transaction was executed, well above the S&P 500 Volatility Index (VIX) of 19.4.
10/24/2025 Ex-dividend of $64.00 ($.32 per share x 200 shares)
10/31/2025 Two Signet Call options expired out-of-the-money at $98.85 per share and the 200 Signet shares remained in the Covered Calls Advisor Portfolio.
11/3/2025 Sold the 200 Signet shares at $98.10 per share to close out this Covered Calls position.
The overall performance results (including commissions) are as follows:
Covered Calls Cost Basis: $19,737.34
= ($104.43 - $5.75) * 200 shares + $1.34 commissions
Net Profit Components:
(a) Options Income: +$1,148.66
= ($5.75 * 200 shares) - $1.34 commissions
(b) Dividend Income: +$64.00
= ($.32 dividend per share x 200 shares)
(c) Capital Appreciation (200 Signet shares sold at $98.10 to close out this Covered Calls position): -$1,266.00
+($98.10 - $104.43) * 200 shares
