Sea Ltd. is a large-cap ($72 billion enterprise value) company headquartered in Singapore. It is a consumer internet company with three core businesses -- e-commerce, digital gaming, and fintech services. The e-commerce business called Shopee is their largest business (by revenue) and is a mobile-centric, social-focused marketplace providing users a shopping environment with integrated payment, logistics, and seller services. The digital gaming business is called Galena which offers mobile and personal computer online games and develops mobile games for the worldwide market. The fintech services (called Monee) includes mobile wallet services, payment processing, credit, banking, and insurance tech. Their operations are primarily in Indonesia, Taiwan, Thailand, Singapore, Malaysia, the Philippines, and Brazil.
As detailed below, a potential outcome for this Sea Limited investment if the stock is in-the-money and therefore assigned on the options expiration date is +5.7% absolute return-on-investment over 53 days (equivalent to +39.4% annualized-return-on-investment) if the stock closes above the $130.00 strike price on the 1/23/2026 options expiration date. The details showing this potential return-on-investment result are as follows:
Sea Limited ADR (SE) -- Rolled Out the Covered Calls Position
The original simultaneous buy/write transaction was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed. As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.
12/19/2025 Two Sea Ltd. Calls expired out-of-the-money, so the 200 shares remained in the Covered Calls Advisor Portfolio.
12/26/2025 Continued Covered Calls position by selling-to-open two 1/9/2026 $130.00 Calls at $2.38 per share when the price of Sea Ltd. stock was at $126.96.
1/9/2026 Sea Ltd. Covered Calls rolled out by buying-to-close the two 1/9/2026 $130.00 Calls at $4.25 per share and simultaneously selling two 1/23/2026 $130.00 Calls at $6.70 per share, so a net credit of $2.45 per share.
A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if the stock price is in-the-money and therefore assigned at the $130.00 strike price on the options expiration date is as follows:
Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission
Net Profit Components:
(a) Options Income: +$2,890.64
= ($9.65 + $2.38 - $4.25 + $6.70) * 200 shares - $5.36 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $130.00 strike price at the 1/23/2026 options expiration date): -$1,430.00
+($130.00 strike price - $137.15 stock purchase price) * 200 shares
