Covered Call Position Closed in Constellation Brands Inc.

Last Friday, the Covered Calls position in Constellation Brands Inc. (ticker STZ) closed out-of-the-money at $127.65 which was well below its $135.00 strike price.  Because Consumer Staples stocks generally (and Constellation Brands as well) are currently underperforming the overall market, I decided to close out this position by selling the 100 STZ shares.  So early in this morning's trading session, I closed out the position at a net loss of $394.67 when I sold the 100 Constellation Brands shares at $128.40.  The transactions history for this Constellation Brands Covered Calls position and its associated return-on-investment results are detailed below.

Constellation Brands Inc. (STZ) -- New Covered Call Position
The simultaneous buy/write transaction was:
10/20/2025 Bought 100 Constellation Brands shares @ $140.78
10/20/2025 Sold 1 Constellation Brands 11/7/2025 $135.00 Call option @ $7.42
Note: the Implied Volatility of this Call options was 32.1 when this transaction was executed.
10/30/2025 Quarterly ex-dividend of $1.02 per share.

11/7/2025 One STZ $135.00 Call option closed out-of-the-money, so the Call expired and 100 STZ shares remained in the Covered Calls Advisor Portfolio.

11/10/2025 Closed out this Covered Calls position by selling the 100 STZ shares at $128.40 per share. 

The overall performance results (including commissions) for this Constellation Brands Covered Call position are as follows:
Covered Call Cost Basis: $13,336.67
= ($140.78 - $7.42) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$741.33
= ($7.42 * 100 shares) - $.67
(b) Dividend Income: +$102.00
= ($1.02 dividend per share x 100 shares)

(c) Capital Appreciation (100 STZ shares sold at $128.40 per share): -$1,238.00
+($128.40 stock selling price - $140.78 stock purchase price) * 100 shares

Total Net Loss: -$394.67

= (+$741.33 + $102.00 dividend income - $1,238.00)

Absolute Return-on-Investment: -3.0%

= -$394.67/$13,336.67

Annualized Return-on-Investment: -83.1%

= (-$394.67/$13,336.67) * (365/13 days)