Established Covered Calls Position in The Walt Disney Company

A Covered Calls position was established in The Walt Disney Company (DIS) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $76.78 was executed. Two hundred shares were purchased at $79.83 and two September 22nd, 2023 Call options were sold at $3.05 at the $78.00 strike price.  The time value was $1.22 per share = [$78.00 strike price - ($79.83 stock purchase price - $3.05 Call options price)].   Given my current stock market outlook, a moderately in-the-money Covered Calls position was established with a Delta of 65.6 which approximates a 65.6% probability this position will be in-the-money and therefore assigned on the Sept 22nd, 2023 options expiration date.  As desired, there is no earnings report prior to the options expiration date.

Disney currently faces a variety of difficult challenges and their stock is in the doldrums.  But I think the current negative sentiment is reaching its nadir and is likely to improve (along with its stock price) from here.  I am confident that under the strong leadership of Bob Iger combined with Disney's exceptional brands, they will successfully navigate through their challenges in their turnaround efforts during the next couple of years.  

As detailed below, the potential return-on-investment results for this Disney Covered Calls position is +1.6% absolute return (equivalent to +38.4% annualized return-on-investment for the next 15 days) if the stock is assigned on the September 22nd options expiration date.

The Walt Disney Company (DIS) -- New Covered Calls Position

The buy/write transaction was:
9/7/2023 Bought 200 The Walt Disney Company shares @ $79.83
9/7/2023 Sold 2 DIS 9/22/2023 $78.00 Call options @ $3.05 per share.

A possible overall performance result (including commissions) for this Disney Covered Calls position if it is in-the-money on the options expiration date is as follows:
Covered Call Net Investment: $15,357.34
= ($79.83 - $3.05) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$608.66
= ($3.05 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
= ($0.00 dividends per share x 200 shares)
(c) Capital Appreciation (If DIS shares assigned at $78.00 strike price at expiration): -$366.00
+($78.00 - $79.83) * 200 shares

Total Net Profit (If options exercised on the 9/22/2023 options expiration date): +$242.66

= (+$608.66 options income +$0.00 dividend income -$366.00 capital appreciation)

Absolute Return-on-Investment (If Disney shares assigned at $78.00 at the Sept 22nd, 2023 expiration): +1.6%

= +$242.66/$15,357.34

Annualized Return-on-Investment: +38.4%

= (+$242.66/$15,357.34) * (365/15 days)