Understanding Brokerage Statements for Covered Call Writing: A Real-Life Example with Energy Select Sector SPDR ETF (NYSE: XLE)

Our covered call writing and put-selling broker statements can be confusing when starting our option-selling careers. This article will detail the first 3 steps of our covered call trades (stock purchase, option sale and buy-to-close limit order) using XLE as reflected in one of my broker accounts.


Purchase of shares to initiate a covered position


XLE: Buy 500 Shares


500 shares were bought at $43.74 per-share. This puts us in a “covered” or protected position… we know our cost-basis. The trade was entered as a market order, day only trade.


Sell the call options to complete the initial covered call trade and set the 20% BTC limit order


XLE: Sell Covered Call and Set BTC Limit Order

  • 5 call contracts were sold at $1.06 and the order was filled
  • Immediately, after entering the trade, a buy-to-close limit order was set at $0.20 (20% of $1.06)
  • The last trade was set at GTC (good until cancelled) and is currently “open”


Portfolio position after the covered call trade is executed


XLE: Portfolio Positions after Executing a Covered Call Trade


  • 500 shares were purchased at a cost-basis of $21,870.00
  • 5 call contracts were sold (negative, reflecting the short position)
  • Total cash generated is $526.00 (also negative reflecting an open short sale)
  • The $526.00 is cash in our brokerage account and available for trading



Covered call writing and put-selling are strategies that, once mastered, will allow us the opportunity to beat the market on a consistent basis. Understanding the accounting procedures of a broker statements is also critical to our overall success.


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