Established Covered Calls in Qualcomm Inc.

This afternoon with less than 30 minutes until market closing, a short-term dividend capture Covered Calls position was established in Qualcomm Inc. (ticker QCOM) when my buy/write limit order for the March 10th, 2023 $120.00s executed at a net debit price of $119.12.  Two hundred QCOM shares were purchased at $124.05 and 2 March 10th, 2023 $120.00 Calls were sold at $4.93 per share.  So, the corresponding time value (aka extrinsic value) was $.88 per share = [$4.93 Call options premium - ($124.05 stock purchase price - $120.00 strike price)].  Given the Covered Calls Advisor's current cautious Overall Market Meter outlook, a moderately in-the-money Covered Call position was established--the Delta was 75.1, which closely approximates the probability that the Call options will be in-the-money on the options expiration date.  In addition, the Implied Volatility of the Calls was 28.5 when the position was established which, as desired, was above the VIX which was 20.4. 

Qualcomm Inc. goes ex-dividend tomorrow at $.75 per share (2.4% annualized dividend yield at the current stock price), so this dividend is included in the potential return-on-investment results shown below.  There is no earnings report prior to the options expiration date.

Qualcomm appeared in my Large-Cap Value+Profitability+Growth stock screener and the average analysts' target price is currently $149.84 (+20.3% above today's purchase price).

Two potential return-on-investment results for this Qualcomm Covered Calls position are: (a) +1.1% absolute return (equivalent to +80.8% annualized return for the next 5 days) if the stock is assigned early [i.e. on Nov. 29th which is the last trading day prior to the November 30th ex-dividend date]; OR (b) +1.7% absolute return (equivalent to +42.3% annualized return over the next 15 days) if the stock is assigned on its December 9th, 2022 options expiration date. 

Qualcomm Inc.(QCOM) -- New Covered Calls Position
The simultaneous buy/write transactions was as follows:
11/25/2022 Bought 200 shares of Qualcomm stock @ $124.52 per share 
11/25/2022 Sold 2 Qualcomm Dec. 9th, 2022 $120.00 Call options @ $5.84 per share
11/30/2022 Upcoming ex-dividend at $.75 per share

The overall performance results (including commissions) would be as follows:
Covered Calls Net Investment: $23,737.34
= ($124.52 - $5.84) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,166.66
= ($5.84 * 200 shares) - $1.34 commission
(b) Dividend Income (If Qualcomm stock assigned on the November 30th ex-dividend date): $0.00
(b) Dividend Income (If Qualcomm stock assigned on the December 9th options expiration date): +$150.00
= $.75 dividend per share x 200 shares
(c) Capital Appreciation (If Qualcomm stock assigned on the Nov. 30th ex-dividend date): -$904.00
= ($120.00 - $124.52) * 200 shares
(c) Capital Appreciation (If Qualcomm stock is above $120.00 strike price and therefore assigned at the December 9th expiration): -$904.00
= ($120.00 - $124.52) * 200 shares

1. Potential Net Profit (If Qualcomm shares assigned early on 11/29/2022, the day prior to the November 30th ex-dividend date): +$262.66
= (+$1,166.66 options income +$0.00 dividend income - $904.00 capital appreciation)
2. Potential Net Profit (If QCOM price is above $120.00 strike price at the Dec. 9th options expiration): +$412.66
= (+$1,166.66 options income +$150.00 dividend income - $904.00 capital appreciation)

1. Absolute Return (If Qualcomm shares assigned on 11/29/2022, the day prior to the Nov. 30th, 2022 ex-dividend date): +1.1%
= +$262.66/$23,737.34
Equivalent Annualized Return (If assigned early on day prior to ex-div date): +80.8%
= (+$262.66/$23,737.34) * (365/5 days)
2. Absolute Return (If QCOM price is above $120.00 strike price at the December 9th options expiration): +1.7%
= +$412.66/$23,737.34
Equivalent Annualized Return (If assigned on the 12/9/2022 options expiration date): +42.3%
= (+$412.66/$23,737.34) * (365/15 days)

At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet (see below) must be 'YES' prior to establishing a new Covered Calls position using the Covered Calls Advisor's Dividend Capture strategy.  As shown below, all nine criteria are achieved for this Qualcomm Inc. Covered Calls position.