Details of the transactions and the result for this Intel position are provided below. The per share price had increased from $34.65 when the position was originally established (on July 26th) to $36.64 at yesterday's market close. This stock price increase is largely a result of what I like to call its 'trifecta earnings'. Trifecta earnings is when the earnings report exceeds analysts' expectations on three key measures: (1) revenues, (2) earnings per share, and (3) forward guidance. This occurred for Intel's earnings recently reported.
The time value remaining in the Call options at the market close yesterday was only $.01; so as expected, the Call owners exercised their option to buy the shares in order to capture the dividend. I preferred this early assignment outcome instead of keeping the covered calls position and capturing the $.2725 per share ex-dividend today. This is because early assignment resulted in substantially higher annualized return-on-investment (+53.2% achieved) rather than if the position had instead been assigned on the August 18th options expiration date which (including the $.2725 per share dividend) would have resulted in a +29.3% annualized ROI.
Using my Dividend Capture Strategy spreadsheet has been working nicely. Last month, excellent early assignment results were achieved with a similar position in JPMorgan Chase & Co: http://coveredcallsadvisor.blogspot.com/2017/07/early-assignment-of-jpmorgan-chase-co.html
Intel Corp. -- Position Closed
07/26/2017 Bought 600 INTC shares @ $34.65
07/26/2017 Sold 6 INTC Aug 18, 2017 $34.00 Call options @ $1.05
Note: a simultaneous buy/write transaction was executed.
08/02/2017 Six Call options exercised early (day prior to ex-dividend date) and stock sold at $34.00 strike price.
The overall performance result (including commissions) for this Intel covered calls position was as follows:
Covered Calls Position Cost Basis: $20,168.85
= ($34.65 stock price -$1.05 options price) *600 shares +$8.85 commissions
(a) Options Income: +$630.00
= ($1.05*600 shares)
(b) Dividend Income (Call options exercised early on August 2nd, the business day prior to ex-div date): +$0.00