Established Covered Calls Position in NetApp Inc.

A short-term Covered Calls position was established on Sept. 29th in NetApp Inc. (ticker NTAP) when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $114.12 was executed.  Two hundred shares were purchased at $118.37 and two October 10th, 2025 Call options were sold at $4.25 at the $115.00 strike price.  The potential time value profit was $.88 per share = [$115.00 strike price - ($118.37 stock purchase price - $4.25 Call options price)].   A moderately in-the-money Covered Calls position was established with the probability that the position would be assigned on the options expiration date was 73.6%.  As is my preference, there was no earnings report prior to the options expiration date.  NetApp went ex-dividend on October 3rd which was exactly one week prior to the options expiration date on October 10th at $.52 per share (a 1.8% annual dividend yield). 

Shortly before market closing yesterday on the October 10th options expiration date, I decided to close out this position at a small profit.  The stock price was at $113.84 which was out-of-the-money (i.e. below the $115.00 strike price).  So, I unwound the position by simultaneously buying-to-close the two NTAP Call options at $.05 per share and selling-to-close the 200 shares at $113.84. 

As detailed below, the result of this position was a +0.16% absolute return (equivalent to +5.3% annualized return-on-investment for the 11 days) for this NetApp Covered Calls. 

NetApp Inc. (NTAP) -- Covered Calls Position Closed by Decision

The buy/write transaction was:
9/29/2025 Bought 200 NetApp Inc. shares @ $118.37
9/29/2025 Sold 2 NTAP 10/10/2025 $115.00 Call options @ $4.25 per share.  The Implied Volatility of these NetApp Call options was 26.0 when this Covered Calls transaction was executed.
10/3/2025 Ex-dividend of $.52 per share.

10/10/2025 Unwound this NetApp position by buying-to-close the two NTAP Call options at $.05 per share and selling-to-close the 200 shares at $113.84.

The overall performance results (including commissions) for this NetApp Covered Calls position is as follows:
Covered Call Net Investment: $22,825.34
= ($118.37 - $4.25) * 200 shares + $1.34 commission

Net Profit:
(a) Options Income: +$838.66
= ($4.25 - $.05) * 200 shares - $1.34 commission
(b) Dividend Income: $104.00

= $.52 per share x 200 shares
(c) Capital Appreciation: -$906.00

= +($113.84 stock selling price - $118.37 stock purchase price) * 200 shares

Total Net Profit: +$36.66

= (+$838.66 options income +$104.00 dividend income - $906.00 capital appreciation)

Absolute Return-on-Investment: +0.16%

= +$36.66/$22,825.34

Annualized Return-on-Investment: +5.3%

= (+$36.66/$22,825.34) * (365/11 days)