Covered Call Position Established in Amazon.com Inc.

Early in this morning's trading session, my buy/write net debit limit order was executed at a price of $224.34 when 100 shares of Amazon.com Inc. (ticker symbol AMZN) stock was purchased at $231.81 and 1 January 16th, 2026 $227.50 Call option was sold at $7.47 per share.  The potential time value profit if the stock is in-the-money and therefore closed out by assignment on the options expiration date is $3.16 per share [$7.47 Call option premium - ($231.81 stock purchase price - $227.50 strike price)].  The probability that this Amazon Call option will be above the $227.50 strike price on the 1/16/2026 options expiration date when this Covered Call position was established was 64.2%.

The average target price of the analysts covering Amazon.com stock is $291.27 (+25.7% above today's stock purchase price).  Also, LSEG Stock Reports Plus has a Buy rating with an Average Score of 7 and an Optimized Score of 9 (on a scale of 1 to 10). Amazon.com also passed all criteria in my customized "Current and Future Earnings Growers" stock screener as detailed in the chart below:

Amazon.com Inc. (AMZN) -- New Covered Call Position

The net debit buy/write limit order was executed as follows:
12/31/2025 Bought 100 shares of Amazon.com stock @ $231.81 per share.  
12/31/2025 Sold 1 AMZN January 16th, 2026 $227.50 Call option @ $7.47 per share.
Note: this was a simultaneous Buy/Write transaction and the Implied Volatility of the Call was 24.6 when this position was established which, as preferred, is well above the current VIX of 14.7.  

A possible overall performance result (including commissions) if this position is assigned on its 1/16/2026 options expiration date is as follows:
Covered Call Net Investment: $22,434.67
= ($231.81 - $7.47) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$746.33
= ($7.47 * 100 shares) - $.67 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Amazon.com stock is above the $227.50 strike price at the January 16th, 2026 options expiration date): -$431.00
= ($227.50 strike price - $231.81 stock purchase price) * 100 shares

Total Net Profit Potential (If assigned at the $227.50 strike price on the Jan. 16th, 2026 options expiration date): +$315.33
= (+$746.33 options income + $0.00 dividend income - $431.00 capital appreciation)

Potential Absolute Return-on-Investment: +1.4%
= +$315.33/$22,434.67
Potential Equivalent Annualized-Return-on-Investment: +32.1%
= (+$315.33/$22,434.67) * (365/16 days)