Established Covered Calls in Freeport-McMoran Inc.

This morning, my net debit limit order was executed and a Covered Calls position was established in Freeport McMoran Inc. (ticker FCX) when the Covered Calls Advisor's buy/write limit order for the January 19th, 2023 $39.50s executed at a net debit price of $39.08.  Five hundred Freeport shares were purchased at $41.02 and 5 January 19th, 2024 $39.50 Calls were sold at $1.94 per share.  So, the corresponding time value (aka extrinsic value) was $.42 per share = [$1.94 Call options premium - ($41.02 stock purchase price - $39.50 strike price)].  Given the Covered Calls Advisor's current Neutral Overall Market Meter outlook, a slightly in-the-money Covered Calls position was established--the Delta was 72.6 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 30.1 when the position was established which, as desired, was above the VIX which is now only 13.9. 

Freeport-McMoran goes ex-dividend at $.15 per share ($.075 regular dividend plus $.075 special dividend) which is a 1.5% annualized dividend yield at today's stock purchase price.  This dividend is included in the potential return-on-investment results shown below.  As preferred, there is no earnings report prior to the options expiration date and analysts' current stock target price is $45.16 per share (+10.1% above today's purchase price).

As detailed below, two potential return-on-investment results for this Freeport Covered Calls position are: (a) +1.1% absolute return (equivalent to +55.1% annualized return for the next 7 days) if the stock is assigned early [i.e. on January 10th which is the last trading day prior to the January 11th ex-dividend date]; OR (b) +1.4% absolute return (equivalent to +35.1% annualized return over the next 15 days) if the stock is assigned on the December 19th, 2024 options expiration date. 

Freeport-McMoran Inc. (FCX) -- New Covered Calls Position
The simultaneous buy/write transactions was as follows:
1/4/2024 Bought 500 shares of FCX stock @ $41.02 per share.  
1/4/2024 Sold 5 FCX January 19th, 2024 $39.50 Call options @ $1.94 per share.
1/11/2024 Upcoming ex-dividend at $.15 per share

The overall performance results (including commissions) would be as follows:
Covered Calls Cost Basis: $19,543.35
= ($41.02 - $1.94) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$966.65
= ($1.94 * 500 shares) - $3.35 commission
(b) Dividend Income (If Freeport stock assigned on the Jan.11th ex-dividend date): $0.00
(b) Dividend Income (If Freeport stock assigned on the Jan.19th, 2024 options expiration date): +$75.00
= $.15 dividend per share x 500 shares
(c) Capital Appreciation (If FCX stock assigned on the Jan. 11th ex-dividend date): -$760.00
= ($39.50 - $41.02) * 500 shares
(c) Capital Appreciation (If Freeport stock is above $39.50 strike price and therefore assigned at the Dec. 19th options expiration date): -$760.00
= ($39.50 - $41.02) * 500 shares

1. Potential Net Profit (If Freeport shares assigned on 1/10/2024, the day prior to the Jan. 11th ex-dividend date): +$206.65
= (+$966.65 options income +$0.00 dividend income - $760.00 capital appreciation)
2. Potential Net Profit (If Freeport stock price is above $39.50 strike price at the Dec. 19th options expiration): +$281.65
= (+$966.65 options income +$75.00 dividend income - $760.00 capital appreciation)

1. Absolute Return-on-Investment (If FCX shares assigned on 1/10/2024, the day prior to the 1/11/2024 ex-dividend date): +1.1%
= +$206.65/$19,543.35
Equivalent Annualized Return-on-Investment (If assigned early on day prior to ex-div date): +55.1%
= (+$206.65/$19,543.35) * (365/7 days)

2. Absolute Return-on-Investment (If Freeport price is above $39.50 strike price and therefore assigned at the Dec. 19th options expiration): +1.4%
= +$281.65/$19,543.35
Equivalent Annualized Return-on-Investment (If assigned on the 1/19/2024 options expiration date): +35.1%
= (+$281.65/$19,543.35) * (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 Freeport-McMoran Inc. Covered Calls position.