Covered Calls Position Established in Comcast Corporation

Today, a Covered Calls position was established in Comcast Corporation (ticker CMCSA) with the purchase of 500 shares at $39.24 per share and five October 11th, 2024 weekly Call options were sold for $1.73 per share at the $38.00 strike price.  A moderately in-the-money Covered Calls positions was established with the probability that the Calls will expire in-the-money on the 10/11/2024 options expiration date of 70.6%.  

Comcast goes ex-dividend at $.31 per share (3.2% dividend yield at the current stock price) on October 2nd which is prior to the October 11th options expiration date -- so this dividend is included in the potential return-on-investment results shown below.  As I prefer, the next quarterly earnings report on October 24th is after the October 11th options expiration date. 

As shown in my "Stock Rover Overall" stock screener results below, Comcast meets all sixteen filters:

Two potential return-on-investment results are: (a) +1.3% absolute return-on-investment (equivalent to +31.3% annualized return-on-investment for the next 15 days) if the stock is assigned early on October 1st (the last trading day prior to the October 2nd, 2024 ex-dividend date); OR (b) +2.1% absolute return-on-investment (equivalent to +32.2% annualized return-on-investment over the next 24 days) if the stock is assigned on the October 11th options expiration date. 

Comcast Corporation (CMCSA) -- New Covered Calls Position

The buy/write transaction was as follows:
09/17/2024 Bought 500 shares of Comcast Corporation @ $39.24 per share 
09/17/2024 Sold 5 Comcast October 11th, 2024 $38.00 Call options @ $1.73 per share.  The Implied Volatility of these Call options was 22.8 when this transaction was executed.
10/02/2024 Upcoming ex-dividend of $.31 per share

Two possible overall performance results (including commissions) would be as follows:
Covered Calls Cost Basis: $18,758.35
= ($39.24 - $1.73) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$861.65
= ($1.73 * 500 shares) - $3.35 commission
(b) Dividend Income (If Comcast shares assigned on day prior to ex-dividend date): +$0.00; or
(b) Dividend Income (If Comcast shares assigned on the October 11th options expiration date): +$155.00
= $.31 per share x 500 shares
(c) Capital Appreciation (If early assignment occurs on Oct. 2nd, 2024): -$620.00
= ($38.00 - $39.24) * 500 shares; or
(c) Capital Appreciation (If Comcast is above $38.00 strike price at the Oct. 11th, 2024 options expiration date): -$620.00
= ($38.00 - $39.24) * 500 shares

1. Total Net Profit (If Comcast shares assigned on last business day prior to the 10/2/2024 ex-dividend date): +$241.65
= (+$861.65 options income +$0.00 dividend income -$620.00 capital appreciation); or
2. Total Net Profit (If Comcast shares assigned on the October 11th options expiration date): +$396.65
= (+$861.65 options income +$155.00 dividend income -$620.00 capital appreciation)

1. Absolute Return-on-Investment (If Comcast shares assigned on last business day prior to the ex-dividend date): +1.3%
= +$241.65/$18,758.35
Equivalent Annualized Return-on-Investment: +31.3%
= (+$241.65/$18,758.35) * (365/15 days); or

2. Absolute Return-on-Investment (If Comcast shares assigned on the October 11th options expiration date): +2.1%
= +$396.65/$18,758.35
Equivalent Annualized Return-on-Investment: +32.2%
= (+$396.65/$18,758.35) * (365/24 days)