Position Closed in Bristol-Myers Squibb Co.

Last Thursday, the April 18th, 2019 Covered Calls position in Bristol-Myers Squibb Co. (ticker symbol BMY) expired with the stock price below the $46.00 strike price -- so the Call options expired and the 1,000 shares were retained in the Covered Calls Advisor's Portfolio.  This morning, Bristol-Myers reported 1st quarter 2019 earnings and revenues that exceeded both last year's numbers and analysts' expectations for this quarter's results.  Bristol-Myers also confirmed their full-year 2019 outlook.  The stock moved higher today and the position was closed out by selling the 1,000 shares at $45.565.

As detailed below, this  Bristol-Myers position achieved a return-on-investment result of +1.6% absolute return in 41 days (equivalent to a +14.6% annualized return-on-investment).

1. Bristol-Myers Squibb Co. -- BMY Covered Calls Position Closed

The buy/write transaction was:
03/15/2019 Bought 1,000 Bristol-Myers shares @ $49.08
03/15/2019 Sold 10 BMY 4/18/2019 $46.00 Call options @ $3.85
Note: the Open Interest in these Call options was 1,450 contracts (sufficiently liquid for a tight bid/ask price spread) and the Implied Volatility was 36.4 when this transaction was executed.
04/04/2019 Quarterly ex-dividend of $410.00 = $.41 per share x 1,000 shares
04/18/2019 10 BMY 4/18/2019 $46.00 Call options expired
Note: the price of BMY was $45.52 at options expiration.
04/25/2019 Sold 1,000 BMY shares at $45.565 per share

The overall performance result (including commissions) for this Bristol-Myers Covered Calls position are as follows:
Covered Calls Cost Basis: $45,241.65
= ($49.08 - $3.85) * 1,000 shares + $11.65 commissions

Net Profit Components:
(a) Options Income: +$3,850.00
= ($3.85*1,000 shares)

(b) Dividend Income: +$410.00
= ($.41 dividend per share x 1,000 shares)

(c) Capital Appreciation (1,000 BMY share sold at $45.565 per share): -$3,519.95
+($45.565 - $49.08)*1,000 shares - $4.95 commissions

Total Net Profit: +$740.05

= (+$3,850.00 options income +$410.00 dividend income -$3,519.95 capital appreciation)

Absolute Return: +1.6%

= +$740.05/$45,241.65

Annualized Return (If BMY stock assigned at $46.00 at Apr 18, 2018 expiration): +14.6%

= (+$740.05/$45,241.65)*(365/41 days)