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Another month another Covered Call Trade Option Expiry!
It is looking almost certain two of my positions will definitely end in the June option expiry showing a loss. The positions are Rent-A-Center, Inc (RCII) and Chunghwa Telecom Co. Ltd. (CHT).

I just have no idea why the option of CHT is behaving like it is. For example I have a long June $20 call. With the CHT trading at $19.69 and over two months to expiry, you expect to get some money for it, wouldn’t you? No, $0.03 was on offer! You need to pay $0.50 buy the long put though. What can I do, give up!

RCII, since its recovery, is not looking back, trading over $24 at a time, retreating with the market at the moment though. My insurance June $20 put option is now worth hardly anything, squeeze a measly $0.25 per share, if I am lucky. I will hang in there and let it expiry in June. I am not giving “sorts law” the satisfaction to dump RCII back down to $18 just after I sold! There! A grain of comfort is the loss should be limited due to my covered call format.

AUY, Yamana Gold Inc. is still showing over $3 loss per share. With over $2 already pocketed as profit, I still have high hope for it. As long it can hang on above $10, there will be hope for an eventual successful outcome. Unfortunately it fell below $10 along with the retreating market today.

iShares MSCI Canada Index fund, my EWC ETF position was showing sign of running away from me. It was trading around $28.75 and I was sure it would be called away in May expiry. For this month, I managed to roll the April $27 call to the May $27 call for $0.15 per share.
I was expecting to close the position during April expiry for an overall annualised profit of 2.5%. The extra $0.15 income will help to improved it to 2.8%. You never know, if EWC hang around at the current price range, I might be lucky and improved the figure every month. The important factor is the risk profile will improve each month too.

I tried to repeat the same trick with iShares MSCI Hong Kong Index Fund, the EWC ETF position. EWH share price was very sluggish compared to that of EWC, I was not able to get $0.15 for the roll over. I notice a new worrying trend that there are no demands for either EWH put or call options. That is going to jeopardise the profitability of the position. After EWH retreated a bit, I eventually managed to roll to the May $16 call for $0.15. Since then the Market seemed to be gathering momentum for a full blown retreat. If only I knew I would have my EWH be called away to be bought back again next month at a lower price! Never mind, just a reminder why covered call is better deal. My conventional portfolio is causing much more concern seeing red everywhere.

So overall, the last few months were not a shining success in my investment profile. The retreating market today is causing further concern. What will tomorrow bring?