Covered Calls Position Closed in Target Corporation

Today I closed out my Covered Calls position in Target Corporation (TGT).  The position was unwound by selling-to-close the 200 shares and simultaneously buying-to-close the 2 November 29th, 2024 $145.00 Call options.  I am taking a substantial $3,137.34 net loss on this position since the stock declined sharply two days ago when they reported a trifecta miss on their quarterly earnings report -- missing analysts' estimates on revenue, earnings, and they also lowered estimates for their upcoming holiday quarter.  I decided to close out this position because Target's current performance is weaker than that of all their primary competitors, which includes Walmart, Costco, and Amazon.com, so Target's stock is likely to remain in the penalty box until they can demonstrate more positive results like that of their competitors.  This unsatisfactory result reinforces why I have long believed that stock positions should not be held on earnings reporting dates.  Unfortunately, I didn't follow my own rule in this instance and was burned as a result and therefore I'll be more diligent about not holding positions on their earnings reporting dates going forward.      

The transactions history for this Target Covered Calls position and its associated return-on-investment results are detailed below.

Target Corporation (TGT) -- Closed Covered Calls Position
The original buy/write transaction was:
11/14/2024 Bought 200 Target Corp. shares @ $154.41.
11/14/2024 Sold 2 Target 11/29/2024 $145.00 Call options @ $12.51 per share.
Note: The Implied Volatility of the Call options was 52.7 when this position was transacted.
11/20/2024 Quarterly ex-dividend of $1.12 per share.

The overall performance results (including commissions) for this Target Corporation Covered Calls position are as follows:
Covered Calls Cost Basis: $28,381.34
= ($154.41 - $12.51) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$2,490.66
= ($12.51 - $.05) * 200 shares - $1.34 commission
(b) Dividend Income: +$224.00
= ($1.12 dividend per share x 200 shares)

(c) Capital Appreciation (Target shares closed out by selling at $125.15): -$5,852.00
+($125.15 - $154.41) * 200 shares

Total Net Loss: -$3,137.34

= (+$2,490.66 +$224.00 -$5,852.00)

Absolute Return-on-Investment: -11.1%

= -$3,137.34/$28,381.34

Annualized Return-on-Investment: -504.3%

= (-$3,137.34/$28,381.34) * (365/8 days)