Here’s an update on the SJM Covered Calls Game since my last post on 3/9/25. On 4/16, I rolled into 5/16 calls. So on 4/16, I bought to cover my 4 contracts for 4/17, 120 calls at .11, each. Then I sold to open 4 contracts for 5/16, 115 calls at 4.25 each.
Recall that when I sold the April calls on 3/7, I sold them for 4.50 each. That earned me 400 x $4.50: $1,800. I bought to cover those calls at .11, so I paid 400 x .11: $44. Accordingly, my net from the April calls was reduced as to $1,756 (1,800 – 44). After closing out the April calls, I immediately sold the May calls: 400 x 4.25: $1,700.
Here’s the updated totals: $644 from 3/15 calls; $1,280 from 4/19 calls; $240 from 5/17 calls; $424 from 6/3 dividend; $560 from 8/16 calls; $432 from 9/3 dividend; $776 from 8/19 calls; $1,920 from 11.15 calls; $432 from dividend (ex-div 11.15; payable 12/2); $600 from 12/20 calls; $432 from dividend paid 3/3; $1,800 from 4/17 calls; -$44 from BTC 4/17 calls (on 4/16); and $1,700 from 5/16 calls. That’s $10,552 total since the game began on 3/6/2024 for an average of $812 per month.
Will my shares be called way on 5/16? You know the answer to that: don’t know, don’t care.
With Love ,
P. Gustav Mueller, author of The Present