Covered Calls Position Established in Comcast Corporation

Just prior to market close today, a Covered Calls position was established in Comcast Corporation (ticker CMCSA) by buying 300 shares at $54.14 and simultaneously selling 3 April 16th, 2021 Call options at the $52.50 strike price.  The Covered Calls Advisor's Dividend Capture Strategy was used since there is an intervening quarterly dividend of $.25 next Tuesday (April 6th, 2021).

A moderately in-the-money strike price was selected with a Delta of 74.9 when this buy/write transaction was executed.  The time value per share was $.30 = [$52.50 strike price - ($54.14 stock price - $1.94 Call options premium)]. 

Two potential return-on-investment results are: (1) +0.6% absolute return in 6 days (equivalent to a +35.0% annualized return-on-investment) if the position is assigned early on April 5th on the last business day prior to next Tuesday's ex-dividend date; or (2) +1.1% absolute return in 17 days (equivalent to a +22.6% annualized return-on-investment) if the position is assigned on the April 16th, 2021 options expiration date. 

Comcast Corporation (CMCSA) -- New Covered Calls Position

The buy/write transaction was as follows:
03/31/2021 Bought 300 shares of Comcast Corporation @ $54.14 per share 
03/31/2021 Sold 3 Comcast April 16th, 2021 $52.50 Call options @ $1.94 per share
04/06/2021 Ex-dividend of $.25 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Calls Cost Basis: $15,662.01
= ($54.14 - $1.94) * 300 shares + $2.01 commission

Net Profit Components:
(a) Options Income: +$582.00
= ($1.94 * 300 shares)
(b) Dividend Income (If Comcast shares assigned on day prior to ex-distribution date): +$0.00; or
(b) Dividend Income (If Comcast shares assigned on April 16th options expiration date): +$75.00
=  $.25 per share x 300 shares
(c) Capital Appreciation (If Comcast shares are above $52.50 strike price and early assignment occurs on April 5th, 2021): -$492.00
= ($52.50 - $54.14) * 300 shares; or
(c) Capital Appreciation (If Comcast is above $52.50 strike price at the April 16th, 2021 expiration): -$492.00
= ($52.50 - $54.14) * 300 shares

1. Total Net Profit (If Comcast shares assigned on last business day prior to April 6th ex-dividend date): +$90.00
= (+$582.00 options income +$0.00 dividend income -$492.00 capital appreciation); or
2. Total Net Profit (If Comcast shares assigned on April 16th options expiration date): +$165.00
= (+$582.00 options income +$75.00 dividend income -$492.00 capital appreciation)

1. Absolute Return (If Comcast shares assigned on last business day prior to ex-distribution date): +0.6%
= +$90.00/$15,662.01
Equivalent Annualized Return: +35.0%
= (+$90.00/$15,662.01)*(365/6 days); or
2. Absolute Return (If Comcast shares assigned on April 16th options expiration date): +1.1%
= +$165.00/$15,662.01
Equivalent Annualized Return: +22.6%
= (+$165.00/$15,662.01)*(365/17 days)