Update on AMZN Covered Call Strategy after 277 Days, +$92,620, ROI 81% or 107% Annualized

AMZN CC strategy continues to perform well. Tables below show the continued progress. In late January I switched the tracking software so the graph starts with the historical profit on the stock, option and net as of Jan 25. In the tables below it shows our all time profits on AMZN as well as the Current Position Profit. On the right is the current position in our portfolio.

The table below shows the importance of the call premiums. On 1/25/21 we had a profit on the stock of $90,011 and a loss on the options of $5,700 for net gain of $84,311. In the next 25 days the net price of AMZN declined and our profit on the stock dropped from $90,011 to $85,601. The option premiums collected during the 25 days (we rolled the options 14 times….to mostly ATM strike prices) improved the profitability on the options from ($5,700) to $7,019. Despite the drop in stock profit our overall net profit on the position increased from $84,311 to $92,620. Historically we have been challenged to create profit on the short options as the stock price continually increased. In the past 25 days the covered call strategy is performing the way we would hope.

This is not investment advice. I am sharing a position that has worked out well for me. No guarantee that it will work out in the future. Individual investor….not a licensed professional.

AMZN Covered Call Position, Calendar Roll +$7,251 in 15 Days, 3% or 74% Annualized.

On May 22 we did a “diagonal roll” buying back the May 22 $2,395 call and selling May 29 $2,425. We had to invest $5.17 per share to do the roll but we increased our strike price by $30.

On May 29 we did a “calendar roll” buying back May 29 $2,425 and selling Jun 5 $2,425 for net credit of $31 per share.

The increase in stock price is driving the profitability of the trade. Option premiums are negative $465 but we did increase the strike price by $30.