Established Covered Calls in Nvidia Corporation

This morning a short-term Covered Calls position was established in Nvidia Corporation (ticker NVDA). Three hundred shares were purchased at $117.96 and three August 16th, 2024 Call options were sold at the $110.00 strike price at $11.12 per share--a buy/write net debit transaction of $106.84 per share which provides a $3.16 per share time value profit potential.  As I prefer, the next quarterly earnings report on August 28th is after the August 16th options expiration date.  The average target price of the Wall Street analysts following Nvidia is $135.53 which is +14.5% above today's stock purchase price.

As detailed below, a potential return-on-investment result is +3.0% absolute return-on-investment (equivalent to +46.8% annualized return-on-investment for the next 23 days) if the Nvidia share price is in-the-money (i.e. above the $110.00 strike price) and therefore assigned on its August 16th, 2024 options expiration date.

 
Nvidia Corporation (NVDA) -- New Covered Calls Position

The Buy/Write transaction was as follows:
7/24/2024 Bought 300 shares of Nvidia Corporation @ $117.96 per share.  
7/24/2024 Sold 3 NVDA  August 16th, 2024 $110.00 Call options @ $11.12 per share.  The Implied Volatility of these Call options was very high at 51.5 and the probability that the Calls will expire in-the-money on the options expiration date was 69.0% when this transaction was executed today. 

A possible overall performance result (including commissions) for this Nvidia Corporation Covered Calls position is as follows:
Covered Calls Net Investment: $32,054.01
= ($117.96 - $11.12) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$3,333.99
= ($11.12 * 300 shares) - $2.01 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 300 Nvidia shares assigned at the $110.00 strike price at expiration): -$2,388.00
+($110.00 - $117.96) * 300 shares

Total Net Profit Potential (If 300 Nvidia shares assigned at $110.00 strike price at expiration): +$945.99
= (+$3,333.99 options income + $0.00 dividend income - $2,388.00 capital appreciation)

Potential Absolute Return-on-Investment: +3.0%
= +$945.99/$32,054.01
Potential Annualized Return-on-Investment: +46.8%
= (+$945.99/$32,054.01) * (365/23 days)