Covered Call Position Established in Universal Health Services Inc.

In this morning's trading session, a Covered Call position in Universal Health Services Inc. (UHS) was established when one hundred shares were purchased at $225.63 and one January 16th, 2026 Call option was sold at $8.67 per share at the $220.00 strike price.  The buy/write net debit limit order at $216.96 was executed, so the time value was $3.04 per share [$8.67 Call option premium - ($225.63 stock purchase price - $220.00 strike price)].  As I prefer, Universal Health Services' next quarterly earnings report on February 25th, 2026 is after the January 16th, 2026 options expiration date.  Given the Covered Calls Advisor's current cautious market outlook, an in-the-money Covered Calls position was established with a 66.0% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Universal Health Services receives 56% of revenues from its traditional acute care and outpatient services and 44% from behavioral health, with approximately 360 inpatient facilities and 60 outpatient facilities primarily in the U.S. and U.K. In the U.S., UHS operates 28 inpatient acute care hospitals, 33 freestanding ERs, 10 outpatient facilities, and 1 surgical hospital.  In behavioral health, they operate 195 facilites in the U.S., 149 in the U.K., and 3 in Puerto Rico.    

Universal Health Services is rated as a "Strong Buy" by LSEG Stock Reports Plus with a perfect 10 for both their "Average Rating" and their "Optimized Rating".  UHS also appeared in six of my customized stock screener rankings by passing all of my criteria therein.  One of these screeners is my "StockRover Overall" screener, the details of which are shown in the table below.  Finally, the average target price of the 25 analysts currently covering the company is +11.9% above today's stock purchase price.

  

As detailed below, a potential return-on-investment result is +1.4% absolute return-on-investment (equivalent to +30.0% annualized return-on-investment over the next 17 days) if the stock is assigned on the January 16th, 2026 options expiration date.

Universal Health Services Inc. (UHS) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
12/30/2025 Bought 100 Universal Health Services shares @ $225.63
12/30/2025 Sold 1 UHS 1/16/2026 $220.00 Call option @ $8.67 per share
Note: the Implied Volatility of the Calls was 28.5 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 14.3.

A possible overall performance result (including commissions) for this Universal Health Services Inc. Covered Call position if assigned on the options expiration date is as follows:
Covered Call Cost Basis: $21,696.67
= ($225.63 - $8.67) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$866.33
= ($8.67 * 100 shares) - $.67 commission
(b) Dividend Income $0.00
(c) Capital Appreciation (If Universal Health shares assigned at their $220.00 strike price at options expiration): -$563.00
+($220.00 - $225.63) * 100 shares

Total Net Profit (If Universal Health Services shares assigned at the $220.00 strike price at the 1/16/2026 expiration): +$303.33

= (+$866.33 + $0.00 dividend income - $563.00)

Absolute Return-on-Investment (If UHS shares assigned at $220.00 strike price on Jan. 16th, 2026 options expiration date): +1.4%

= +$303.33/$21,696.67

Annualized Return-on-Investment (If Universal Health Services shares assigned at $220.00 at the 1/16/2026 options expiration date): +30.0%

= (+$303.33/$21,696.67) * (365/17 days)