Assigned on EW Covered Call, Profit of $3,498 in 63 Days, ROI of 8.8% or 51% Annualized

On October 26 we established a covered call on EW. Over the next 63 days we rolled the calls on a weekly basis. We also tried buying buying “insurance puts” in late November. On Friday we were “rolling up” a lot of our covered call positions which requires incremental cash. To avoid increasing the margin in the account we decided to let the EW shares get called away. Not sure it is a good time to shut down the position as the graph shows the upward trend in net profitability over the past couple of weeks.

Table below shows the activity with the stock and the options over the past 63 days.

Happy with the return on the position…..I do believe EW is a medical device stock to hold for the long term……so might consider another position in the near future.

Update on EW Covered Call Position

We were hoping to see a rebound in EW stock price and have not sold any calls since the Jun $12 $74.2 Calls expired. Unfortunately the stock has not rebounded but continued down. Without writing calls to provide downside protection the drop in price impacts 100%. Overall the call options are generating a profit of $1,914 which partially offsets the $7,300 loss on the stock. Plans are to continue to not write calls and see a rebound in stock price…..but it is getting expensive.