12/4/2025 Bought 100 shares of Amazon.com stock @ $229.91 per share.
12/4/2025 Sold 1 AMZN Dec. 19th, 2025 $222.50 Call option @ $10.61 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Calls was 32.1 when this position was established which, as preferred, is well above the current VIX of 16.1.
A possible overall performance result (including commissions) if this position is assigned on its 12/19/2025 options expiration date is as follows:
Covered Call Net Investment: $21,930.67
= ($229.91 - $10.61) * 100 shares + $.67 commission
Net Profit Components:
(a) Option Income: +$1,060.33
= ($10.61 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Amazon.com stock is above the $222.50 strike price at the December 19th, 2025 options expiration date): -$741.00
= ($222.50 strike price - $229.91 stock purchase price) * 100 shares
Total Net Profit Potential (If assigned at the $222.50 strike price on the Dec. 19th, 2025 options expiration date): +$319.33
= (+$1,060.33 options income + $0.00 dividend income - $741.00 capital appreciation)
Potential Absolute Return-on-Investment: +1.5%
= +$319.33/$21,930.67
Potential Equivalent Annualized-Return-on-Investment: +35.4%
= (+$319.33/$21,930.67) * (365/15 days)

