Established Covered Call in Netflix Inc.

Today a Covered Call position of 16 days duration was established in Netflix Inc. (ticker NFLX).  My net buy/write limit order at $106.00 was executed by simultaneously purchasing one hundred shares at $111.35 and selling one December 5th, 2025 weekly Call option at the $108.00 strike price at $5.35 per share, which provides a $2.00 per share = [$5.35 Call option premium received - ($111.35 stock purchase price - $108.00 option strike price)] time value profit potential.  A moderately in-the-money Covered Call position was established with the probability that Netflix's stock will close in-the-money on the 12/5/2025 options expiration date was 65.6% when this transaction was executed.  As preferred, the next earnings report on January 20th, 2026 is after the December 5th, 2025 options expiration date. 

As detailed below, a potential return-on-investment result is +1.9% absolute return-on-investment (equivalent to +42.9% annualized return-on-investment for the next 16 days) if Netflix's share price is in-the-money (i.e. above the $108.00 strike price) and therefore assigned on its December 5th, 2025 options expiration date.  

Netflix Inc. (NFLX) -- New Covered Call Position

Today's buy/write net limit order transaction was as follows:
11/19/2025 Bought 100 Netflix Inc. shares at $111.35.

11/19/2025 Sold 1 Netflix 12/5/2025 $108.00 Call option @ $5.35 per share.  The Implied Volatility of these Calls was 35.7% when this position was established.  

A possible overall performance result (including commissions) for this Netflix Covered Call position is as follows:
Covered Call Net Investment: $10,600.67
= ($111.35 - $5.35) * 100 shares + $.67 commission

Net Profit:
(a) Option Income: +$534.33
= ($5.35 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If 100 Netflix shares assigned at the $108.00 strike price at expiration): -$335.00
+($108.00 strike price - $111.35 stock purchase price) * 100 shares

Total Net Profit Potential (If 100 Netflix shares in-the-money and therefore assigned at the $108.00 strike price at the options expiration date): +$199.33
= (+$534.33 option income + $0.00 dividend income - $335.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.9%
= +$199.33/$10,600.67
Potential Annualized Return-on-Investment: +42.9%
= (+$199.33/$10,600.67) * (365/16 days)