The post when this Morgan Stanley Covered Calls position was originally established is here.
As detailed below, the return-on-investment result for this Morgan Stanley Covered Calls position was +1.0% absolute
return in 10 days (equivalent to a +34.8% annualized
return-on-investment).
Morgan Stanley (MS) -- Covered Calls Position Closed by Early Assignment
The buy/write transaction was:
7/21/2025 Sold 3 Morgan Stanley 8/8/2025 $137.00 Call options @ $4.76
Note: the Implied Volatility of the Call options was 21.9 when this buy/write transaction was executed.
7/31/2025 Three Morgan Stanley Calls were exercised on the last business day prior to today's July 31st, 2025 ex-dividend date, so the Call options expired and the 300 MS shares were sold at the $137.00 strike price.
The overall performance results (including commissions) for this Morgan Stanley Covered Calls position are as follows:
Covered Calls Cost Basis: $40,712.01
= ($140.46 - $4.76) * 300 shares + $2.01 commission
Net Profit Components:
(a) Options Income: +$1,425.99
= ($4.76 * 300 shares) - $2.01 commission
(b) Dividend Income (Three Call options exercised early on July 30th, the last business day prior to the July 31st ex-div date): +$0.00
(c) Capital Appreciation (Morgan Stanley Call options assigned early on July 31st): -$1,038.00
+($137.00 strike price - $140.46 stock purchase price) * 300 shares
+($137.00 strike price - $140.46 stock purchase price) * 300 shares
Total Net Profit: +$387.99
= (+$1,425.99 options income +$0.00 dividend income -$1,038.00 capital appreciation); or
Absolute Return-on-Investment: +1.0%
= +$387.99/$40,712.01
Annualized Return-on-Investment: +34.8%
= (+$387.99/$40,712.01) * (365/10 days)