Covered Call Position Established in Humana Inc.

Today my net debit limit order was executed and a Covered Call position was established in Humana Inc. (ticker HUM) when the Covered Calls Advisor's buy/write limit order for the April 4th, 2025 $255.00 strike price was executed at a net debit price of $245.85. One hundred Humana shares were purchased at $266.35 and 1 April 4th, 2025 $255.00 Call was sold at $20.50 per share. So, the corresponding time value (aka extrinsic value) was $9.15 per share = [$20.50 Call options premium - ($266.35 stock purchase price - $255.00 strike price)].  The Implied Volatility of this Call option was very high at 69.7 when this position was established so, as shown below, the potential return-on-investment is also very high.    

Also, Humana goes ex-dividend on 3/28/2025) at $.885 (a 1.3% annualized dividend yield) at today's stock purchase price. This dividend is included in the potential return-on-investment result shown below. Also, as preferred, there is no earnings report prior to the options expiration date.

 
As detailed below a potential return-on-investment result if this Humana Covered Call position if the stock is assigned on its March 28th, 2025 options expiration date is +4.1% absolute return (equivalent to +99.3% annualized return-on-investment over the next 15 days).

Humana Inc. (HUM) -- New Covered Call Position
The simultaneous buy/write transactions was as follows:
3/20/2025 Bought 100 shares of Humana Inc. stock @ $266.35 per share 
3/20/2025 Sold 1 Humana March 28th, 2025 $255.00 Call option @ $20.50 per share
3/28/2025 Upcoming ex-dividend at $.885 per share

A potential overall performance result (including commissions) would be as follows:
Covered Calls Cost Basis: $24,585.67
= ($266.35 - $20.50) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$2,049.33
= ($20.50 * 100 shares) - $.67 commission
(b) Dividend Income (If Humana stock assigned on the March 28th options expiration date): +$88.50
= $.885 dividend per share x 100 shares
(c) Capital Appreciation (If Humana stock is above the $255.00 strike price and therefore assigned on the 4/4/2025 option expiration date): -$1,135.00
= ($255.00 strike price - $266.35 stock purchase price) * 100 shares

Potential Net Profit (If stock price is above its $255.00 strike price at the 4/4/2025 options expiration date): +$1,002.83
= (+$2,049.33 options income +$88.50 dividend income - $1,135.00 capital appreciation) 

Potential Absolute Return-on-Investment: +4.1%
= +$1,002.83/$24,585.67
Potential Equivalent Annualized Return-on-Investment: +99.3%
= (+$1,002.83/$24,585.67) * (365/15 days)