Covered Calls Position Established in Freeport-McMoran Inc.

This morning a new Covered Calls net debit buy/write limit order was established in Freeport-McMoran Inc. (ticker FCX) for the April 4th, 2025 expiration and at the $38.00 strike price.  The order was placed soon after the market opened at a $37.26 net debit limit price, so the extrinsic value (which represents the maximum profit potential for this position) was $.74 per share [$2.11 Call options premium - ($39.37 stock purchase price - $38.00 strike price)].  This limit order was filled at 9:59am ET.  The probability that this position will be in-the-money and therefore assigned on its options expiration date was 64.7% when this order was transacted.  As preferred, there is no earnings report prior to the 4/4/2025 options expiration date.

As detailed below, the potential return-on-investment result is +2.0% absolute return-on-investment in 14 days (equivalent to a +51.3% annualized return-on-investment).  

Freeport-McMoran Inc. (FCX) -- New Covered Calls Position

The simultaneous buy/write transaction was as follows:
3/21/2025 Bought 500 shares of Freeport-McMoran stock @ $39.37 per share.  
3/21/2025 Sold 5 Freeport-McMoran April 4th 28th, 2025 $38.00 Call options @ $2.11 per share.
Note: The Implied Volatility of the Call options was 42.3 when this transaction was executed which, as I prefer, is well above the current S&P 500 Volatility Index (i.e. VIX). 

A possible overall performance result (including commissions) would be as follows:
Covered Calls Cost Basis: $18,633.35
= ($39.37 - $2.11) * 500 shares + $3.35 commission

Net Profit Components:
(a) Options Income: +$1,051.65
= ($2.11 * 500 shares) - $3.35
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (If Freeport-McMoran stock is above $38.00 strike price at the 4/3/2025 options expiration date): -$685.00
= ($38.00 strike price - $39.37 stock purchase price) * 500 shares

Total Net Profit Potential: +$366.65
= (+$1,051.65 options income + $0.00 dividend income - $685.00 capital appreciation)

Potential Absolute Return-on-Investment: +2.0%
= +$366.65/$18,633.35
Potential Equivalent Annualized Return-on-Investment: +51.3%
= (+$366.65/$18,633.35) * (365/14 days)