Continuation of Covered Calls Positions in Bank of America Corporation and The Cigna Group

The Covered Calls Advisor Portfolio had two Covered Calls positions with March 27th, 2026 (last Friday) options expiration dates.  Both positions (Bank of America Corporation and The Cigna Group) closed out-of-the-money so their Calls expired and the shares remained in the Covered Calls Advisor Portfolio.

This morning I decided to extend both of these Covered Calls positions by two weeks by selling April 11th, 2026 Call options against the shares currently held in the Covered Calls Advisor Portfolio.  

As detailed below, the potential return-on-investment results if the stocks close in-the-money on their April 10th expiration date are:

1. Bank of America Corporation -- +1.9% absolute return-on-investment (equivalent to +13.9% annualized roi) for the 49 days of this investment.

2. The Cigna Group -- +3.4% absolute return-on-investment (equivalent to +24.8% annualized roi) for the 50 days of this investment.

The details for these positions are as follows:

1. Bank of America Corporation (BAC) -- Continuation of this Covered Calls Position

The buy/write transaction was as follows:
2/20/2026 Bought 500 shares of Bank of America Corp. stock @ $51.91 per share 
2/20/2026 Sold 5 BAC March 13th, 2026 $50.00 Call options @ $2.61 per share
Note: The Implied Volatility of these Calls was 30.2 when this position was established.
3/6/2026 Ex-dividend of $.28 per share
3/13/2026 Bank of America stock closed out-of-the-money at $46.72 (i.e. below the $50.00 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Calls position by selling 5 March 27th, 2026 $47.50 Call options at $1.08 per share when the stock price was trading at $47.39.  The Implied Volatility of these Calls was 34.4% when this transaction was made.

3/27/2026 Bank of America stock closed out-of-the-money at $46.97 (i.e. below the $47.50 strike price), so the Call options expired and the 500 shares remain in the Covered Calls Advisor Portfolio.
3/30/2026 Continued this Covered Calls position by selling 5 April 10th, 2026 $47.50 Call options at $1.38 per share when the stock price was trading at $47.81.  The Implied Volatility of these Calls was 37.4% when this transaction was made.

A possible overall performance result (including commissions) if the stock is assigned on the 4/10/2026 options expiration date would be as follows:
Covered Calls Cost Basis: $24,653.35
= ($51.91 - $2.61) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$2,524.95
= ($2.61 + $1.08 + $1.38) * 500 shares - $10.05 commissions
(b) Dividend Income: +$140.00
= $.28 per share x 500 shares
(c) Capital Appreciation (If shares above the $47.50 strike price at the April 10th options expiration): -$2,205.00
= ($47.50 - $51.91) * 500 shares

Potential Net Profit (If BAC price is above the $47.50 strike price at the April 10th options expiration): +$459.95
= (+$2,524.95 options income + $140.00 dividend income - $2,205.00 capital appreciation)

Absolute Return-on-Investment (If BAC price is above $47.50 strike price at the April 10th options expiration): +1.9% = +$459.95/$24,653.35
Equivalent Annualized Return-on-Investment (If assigned on the 4/10/2026 options expiration date): +13.9%
= (+$459.95/$24,653.35) * (365/49 days)

2. The Cigna Group (CI) -- Continuation of this Covered Call Positionon

The buy/write transaction today was as follows:
2/19/2026 Bought 100 Cigna Group shares @ $287.06
2/19/2026 Sold 1 Cigna 3/13/2026 $275.00 Call option @ $15.56 per share.  
3/5/2026 Upcoming quarterly ex-dividend of $1.56 per share

3/13/2026 The Cigna Group stock closed out-of-the-money at $267.19 (i.e. below the $275.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/16/2026 Continued this Covered Call position by selling 1 March 27th, 2026 $270.00 Call option at $6.70 per share when the stock price was trading at $269.45.  The Implied Volatility of this Call options was 38.4% when this transaction was made.

3/27/2026 The Cigna Group stock closed out-of-the-money at $261.96 (i.e. below the $270.00 strike price), so the Call option expired and the 100 Cigna shares remain in the Covered Calls Advisor Portfolio.
3/30/2026 Continued this Covered Call position by selling 1 April 10th, 2026 $265.00 Call option at $7.48 per share when the stock price was trading at $263.37.  The Implied Volatility of this Call options was 44.5% when this transaction was made.

A possible overall performance result (including commissions) if this Cigna Covered Call position is in-the-money on its 4/10/2026 expiration date is as follows:
Covered Call Net Investment: $35,135.34
= ($180.02 - $4.35) * 200 shares + $1.34 commissions

Net Profit Components:
(a) Option Income: +$2,971.99
= ($15.56 +6.70 + $7.48) * 100 shares - $2.01 commissions
(b) Dividend Income: +$156.00
= ($1.56 dividend per share x 100 shares)

(c) Capital Appreciation (If Cigna shares assigned at the $265.00 strike price at the 4/10/2026 options expiration date): -$2,206.00

+($265.00 - $287.06) * 100 shares

Total Net Profit (If Cigna shares assigned at the April 10th, 2026 options expiration date): +$921.99

= (+$2,971.99 option income + $156.00 dividend income - $2,206.00 capital appreciation)

Potential Absolute Return-on-Investment (If Cigna shares assigned at the April 10th, 2026 options expiration date): +3.4%

= +$921.99/$27,150.67

Potential Annualized Return-on-Investment: +24.8%

= (+$921.99/$27,150.67) *(365/50 days)