Early Assignment of Covered Calls Position in U.S. Bancorp

Early this morning, the Covered Calls Advisor was notified by my broker (Schwab) that the four U.S. Bancorp (ticker USB) January 6th, 2023 $41.00 Call options were exercised yesterday--Note: it is commonplace with early assignments that they normally occur on the last business day prior to the ex-dividend date.  U.S. Bancorp stock has increased from its purchase price of $42.30 one week ago to $43.35 at the market close yesterday.  The original $.24 time value had declined on yesterday's market close to only $0.025 (at the midpoint of the Bid/Ask spread), so as I expected and with 9 days remaining until the options expiration date, the owner of the Calls exercised their option to buy the 400 shares at the $41.00 strike price in order to receive today's $.48 per share ex-dividend.  

The post showing the details of this position when it was originally established is here .  As detailed below, the return-on-investment results for this U.S. Bancorp was: +0.6% absolute return in 7 days (equivalent to a +30.8% annualized return-on-investment).    
 

U.S. Bancorp (USB) -- Covered Calls Position Closed by Early Assignment

The original simultaneous buy/write transaction was:
12/22/2022 Bought 400 U.S. Bancorp shares @ $42.30
12/22/2022 Sold 4 USB January 6th, 2023 $41.00 Call options @ $1.54 per share.  The Implied Volatility of these Call options was 21.4 when this position was established.
12/29/2022 U.S. Bancorp Call options owner exercised their options, so the Covered Calls position was closed out early. The 4 USB Call options expired worthless and the 400 BK shares were sold at the $41.00 strike price.
 

The overall performance results (including commissions) for this U.S. Bancorp Covered Calls position are as follows:
Stock Purchase Net Investment: $16,306.68
= ($42.30 - $1.54) * 400 shares + $2.68 commission

Net Profit:
(a) Options Income: +$616.32
= ($1.54 * 400 shares) - $2.68 commission
(b) Dividend Income (Four Call options exercised early on December 28th, the last business day prior to the December 29th ex-div date): +$0.00
(c) Capital Appreciation (USB's shares assigned early at $41.00 strike price): -$520.00
+($41.00-$42.30) * 400 shares

Total Net Profit (U.S. Bancorp's shares assigned early at $41.00 on December 28th): +$96.32

= (+$616.32 options income +$0.00 dividend income -$520.00 capital appreciation)

Absolute Return-on-Investment: +0.6%

= +$96.32/$16,306.68

Annualized Return-on-Investment: +30.8%

= (+$96.32/$16,306.68) * (365/7 days)