Established Covered Calls in Las Vegas Sands Corp.

Today, a Covered Calls position was established in Las Vegas Sands Corp. (ticker symbol LVS) with a December 21st, 2018 expiration and at the $50.00 strike price.  This position has an expected upcoming quarterly ex-dividend on December 17th of $.75 per share, so the potential return for this position includes the ex-dividend since it goes ex-dividend prior to the December 21st options expiration date.  Quarterly earnings were reported recently, so the next earnings report will not be until January 23rd, 2019.  Given the Covered Calls Advisor's current Overall Market Meter indicator of Slightly Bearish, a slightly in-the-money Covered Calls position was established. 

As detailed below, a potential return-on-investment result is +4.6% absolute return (equivalent to +46.5% annualized return for the next 36 days) if the stock is assigned on the December 21st options expiration date.  These potential returns are high because of the recent decline in LVS stock and also the stock market in general.  The Implied Volatility of the options has increased to the high level of 45.5 when this Covered Calls transactions was executed.

Las Vegas Sands Corp. (LVS) -- New Covered Calls Position
The transactions were:
11/16/2018 Bought 300 Las Vegas Sands shares @ $52.90
11/16/2018 Sold 3 LVS 12/21/2018 $50.00 Call options @ $4.40
Note: a simultaneous buy/write transaction was executed, and the Open Interest in these Call options was 328 contracts.
12/17/2018 Upcoming quarterly ex-dividend of $.75 per share

A possible overall performance result (including commissions) for this Las Vegas Sands Covered Calls position is as follows:
Covered Calls Cost Basis: $14,554.95
= ($52.90 - $4.40) *300 + $4.95 commission

Net Profit Components:
(a) Options Income: +$1,317.99
= ($4.40*300 shares) - $2.01 commissions
(b) Dividend Income (If Las Vegas Sands shares assigned at Dec 21st, 2018 expiration): +$225.00
= ($.75 dividend per share x 300 shares)

(c) Capital Appreciation (If LVS assigned at $50.00 strike price at options expiration): -$874.95
+($50.00-$52.90)*300 shares - $4.95 commissions

Total Net Profit (If Las Vegas Sands shares assigned at $50.00 at Dec 21, 2018 options expiration): +$668.04

= (+$1,317.99 +$225.00 -$874.95)

Absolute Return (If Las Vegas Sands shares assigned at $50.00 at Dec 21, 2018 options expiration): +4.6%

= +$668.04/$14,554.95

Annualized Return (If LVS stock assigned at $50.00 at Dec 21, 2018 expiration): +46.5%

= (+$668.04/$14,554.95)*(365/36 days)

These returns will be achieved as long as the stock is above the $50.00 strike price at the Dec. 21st options expiration date.  If the stock declines below the strike price, the breakeven price of $47.75 ($52.90 -$4.40 -$.75) provides 9.7% downside protection below today's purchase price.