Covered Calls Established in Uber Technologies Inc.

Today my buy/write net debit limit order was executed and 500 shares of Uber Technologies Inc.(ticker symbol UBER) stock were purchased at $46.43 and 5 August 18th, 2023 $44.00 Call options were sold at $3.13 per share -- a net debit of $43.30 per share -- so the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $.70 per share [$3.13 Call options premium - ($46.43 stock purchase price - $44.00 strike price)].  

This is a repeat of seven similar Covered Calls positions in Uber during the past four months and all were successfully assigned on their respective options expiration dates.  I remain bullish on Uber despite the negative reaction so far to today's quarterly earnings report.  Their earnings report was very good and I am hopeful that today's 6+% decline so far is just profit taking from some investors who have made substantial profits this year in Uber.  Like the prior Uber positions, today's new position was established at a moderately in-the-money strike price with an approximate probability when this position was established that the stock will be in-the-money and therefore assigned on the options expiration date of 73.0%.

As detailed below, a potential outcome for this Uber Technologies investment is +1.6% absolute return-on-investment for the next 18 days (equivalent to +32.5% annualized-return-on-investment) if the stock closes above the $44.00 strike price on the August 18th, 2023 options expiration date.

Uber Technologies Inc. (UBER) -- New Covered Calls Position

The net debit buy/write limit order was executed as follows:
8/1/2023 Bought 500 shares of Uber Technologies Inc. stock @ $46.43 per share 
8/1/2023 Sold 5 Uber August 18th, 2023 $44.00 Call options @ $3.13 per share
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 39.8 when this position was established.  

A possible overall performance result (including commissions) if this position is assigned on its 8/18/2023 options expiration date is follows:
Covered Calls Net Investment: $21,653.35
= ($46.43 - $3.13) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,561.65
= ($3.13 * 500 shares) - $3.35 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Uber stock is above the $44.00 strike price at the August 18th expiration): -$1,215.00
= ($44.00 - $46.43) * 500 shares

Potential Total Net Profit (If assigned at expiration): +$346.65
= (+$1,561.65 options income + $0.00 dividend income - $1,215.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.6%
= +$346.65/$21,653.35
Potential Equivalent Annualized-Return-on-Investment: +32.5%
= (+$346.65/$21,653.35) * (365/18 days)