Covered Calls Position Established in Taiwan Semiconductor ADR

This afternoon near the market close, my net debit limit order was executed and a Covered Calls position was established in Taiwan Semiconductor ADR (ticker TSM) when the Covered Calls Advisor's buy/write limit order for the September 20th, 2024 $160.00s executed at a net debit price of $155.07. Two hundred Taiwan Semi shares were purchased at $166.72 and 2 Sept 20th, 2024 $160.00 Calls were sold at $11.65 per share. So, the corresponding time value (aka extrinsic value) was $4.93 per share = [$11.65 Call options premium - ($166.72 stock purchase price - $160.00 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 probability that the position will close in-the-money and therefore by assigned on the 9/20/2024 options expiration date was 62.8% when this position was established. In addition, the Implied Volatility of the Calls was 39.5 which, as desired, was above the VIX which is now 17.5. 

Taiwan Semi goes ex-dividend at $.6158 (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. Also, as preferred, there is no earnings report prior to the options expiration date and analysts' current stock target price is $204.66 per share (+22.8% above today's purchase price).

 
As shown in my Quality+Growth stock screener results below, TSM meets all twenty filters including scores in the 90s for both the Quality Score and the Growth Score.  

As detailed below, two potential return-on-investment results for this Taiwan Semi Covered Calls position are: (a) +3.2% absolute return-on-investment (equivalent to +55.2% annualized return-on-investment for the next 21 days) if the stock is assigned early [i.e. on September 11th which is the last trading day prior to the September 12th ex-dividend date]; OR (b) +3.6% absolute return (equivalent to +45.0% annualized return over the next 29 days) if the stock is assigned on the September 20th, 2024 options expiration date.

Taiwan Semiconductor ADR (TSM) -- New Covered Calls Position
The simultaneous buy/write transactions was as follows:
8/22/2024 Bought 200 shares of Taiwan Semiconductor stock @ $166.72 per share 
8/22/2024 Sold 2 Taiwan Semi September 20th, 2024 $160.00 Call options @ $11.65 per share
9/12/2024 Upcoming ex-dividend at $.6158 per share

Two potential overall performance results (including commissions) would be as follows:
Covered Calls Cost Basis: $31,015.34
= ($166.72 - $11.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,328.66
= ($11.65 * 200 shares) - $1.34 commission
(b) Dividend Income (If Taiwan Semi stock assigned on the day prior to the Sept. 12th ex-dividend date): $0.00
(b) Dividend Income (If TSM stock assigned on the Sept.20th options expiration date): +$123.16
= $.6158 dividend per share x 200 shares
(c) Capital Appreciation (If Taiwan Semi stock assigned on the Sept. 12th ex-dividend date): -$1,344.00
= ($160.00 strike price - $166.72 stock purchase price) * 200 shares
(c) Capital Appreciation (If TSM stock is above the $160.00 strike price and therefore assigned at the Sept. 20th expiration date): -$1,344.00
= ($160.00 - $166.72) * 200 shares

1. Potential Net Profit (If TSM shares assigned on 9/11/2024, the day prior to the Sept. 12th ex-dividend date): +$984.66
= (+$2,328.66 options income +$0.00 dividend income - $1,344.00 capital appreciation)
2. Potential Net Profit (If stock price is above $160.00 strike price at the 9/20/2024 options expiration): +$1,107.82
= (+$2,328.66 options income +$123.16 dividend income - $1,344.00 capital appreciation)

1. Absolute Return-on-Investment (If Taiwan Semi shares assigned early): +3.2%
= +$984.66/$31,015.34
Equivalent Annualized Return-on-Investment (If assigned early): +55.2%
= (+$984.66/$31,015.34) * (365/21 days)

2. Absolute Return-on-Investment (If Taiwan Semi price is above the $160.00 strike price and therefore assigned at the 9/20/2024 options expiration): +3.6%
= +$1,107.82/$31,015.34
Equivalent Annualized Return-on-Investment (If assigned on the 9/20/2024 options expiration date): +45.0%
= (+$1,107.82/$31,015.34) * (365/29 days)