As detailed below, a potential outcome for this investment is +1.8% absolute return-on-investment for the next 22 days (equivalent to +30.2% on an annualized return basis) if the stock closes above the $47.50 strike price on the June 15th options expiration date.
Metlife Inc. (MET) -- New Covered Calls Position
05/25/2018 Bought 500 MET shares @ $47.63
05/25/2018 Sold 5 MET June 15, 2018 $47.50 Call options @ $.99
Note: a simultaneous buy/write transaction was executed.
A possible overall performance result (including commissions) for this MET Covered Calls position is as follows:
Stock Purchase Cost Basis: $23,328.30
= ($47.63 -$.99) *500 shares +$8.30 commission
(a) Options Income: +$495.00
= ($.99*500 shares)
(b) Dividend Income: +$0.00
The downside 'breakeven price' at expiration is at $46.64 ($47.63 - $.99), which is 2.1% below the current market price of $47.63.
Using the Black-Scholes Options Pricing Model, the probability of making a profit (if held until the June 15th, 2018 options expiration) for this Metlife Covered Calls position is 52.3%, so the expected value annualized ROI of this investment (if held until expiration) is +15.8% (+30.2% * 52.3%), a satisfactory expected value profit for this in-the-money Covered Calls position.