Covered Call Position Established in Microsoft Corporation

This afternoon at 2:38pm, my Covered Call buy/write net debit limit order was executed. After Microsoft's stellar quarterly earnings report after the market close yesterday, I was very surprised at the stock price decline this morning and I placed a buy/write order at a net debit limit price of $508.56 (at the $512.50 strike price and at the short-term November 7th expiration date). I was not expecting the order to execute, but the stock price continued to decline by over 3.5% from yesterday's closing price when the transaction was executed. One hundred Microsoft shares were purchased at $522.64 and 1 November 7th, 2025 $512.50 Call option was sold at $14.08 per share -- a net debit of $508.56 per share.  So, the potential time value profit if the stock is in-the-money and therefore closed out by assignment at expiration is $3.94 per share [$14.08 Call option premium - ($522.64 stock purchase price - $512.50 strike price)].  The probability of assignment on the options expiration date was 70.0% when this transaction occurred.

As detailed below, a potential outcome for this Microsoft Corporation investment is +0.8% absolute return-on-investment for the next 8 days (equivalent to +35.3% annualized-return-on-investment) if the stock closes above the $512.50 strike price on the November 7th, 2025 options expiration date.

Microsoft Corporation (MSFT) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
10/30/2025 Bought 100 shares of Microsoft stock @ $522.64 per share.  
10/30/2025 Sold 1 MSFT November 7th, 2025 $512.50 Call option @ $14.08 per share.  The Implied Volatility of the Call was 25.3 when this transaction was executed.

A possible overall performance result (including commissions) if this position is assigned on its 11/7/2025 option expiration date is as follows:
Microsoft Covered Call Net Investment: $50,856.67
= ($522.64 - $14.08) * 100 shares + $.67 commission

Net Profit Components:
(a) Call Option Income: +$1,407.33
= ($14.08 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Microsoft stock is above the $512.50 strike price at the November 7th option expiration date): -$1,014.00
= ($512.50 - $522.64) * 100 shares

Potential Total Net Profit (If assigned at expiration): +$393.33
= (+$1,407.33 option income + $0.00 dividend income - $1,014.00 capital appreciation)

Potential Absolute Return-on-Investment: +0.8%
= +$393.33/$50,856.67
Potential Equivalent Annualized-Return-on-Investment: +35.3%
= (+$393.33/$50,856.67) * (365/8 days)