Covered Calls Position Established in Sea Limited ADR

A Covered Calls position in Sea Limited ADR (ticker SE) was established yesterday when two hundred shares were purchased at $137.15 and two December 19th, 2025 Call options were sold at $9.65 per share at the $130.00 strike price.  The buy/write net debit limit order at $127.50 was executed, so the time value was $2.50 per share [$9.65 Call options premium - ($137.15 stock purchase price - $130.00 strike price)].  As I prefer, Sea's next quarterly earnings report is not until March 3rd, 2026 which is long after the December 19th, 2025 options expiration date.  An in-the-money Covered Calls position was established with a 70.2% probability of assignment on the options expiration date when this buy/write limit order was executed. 

Sea Ltd. is a large-cap ($82 billion market cap) company headquartered in Singapore.  It is a consumer internet company with three core businesses -- e-commerce, digital gaming, and fintech services.  The e-commerce business called Shopee is their largest business (by revenue) and is a mobile-centric, social-focused marketplace providing users a shopping environment with integrated payment, logistics, and seller services.  The digital gaming business is called Galena which offers mobile and personal computer online games and develops mobile games for the worldwide market. The fintech services (called SeaMoney) includes mobile wallet services, payment processing, credit, banking, and insurance tech.  Their operations are primarily in Indonesia, Taiwan, Thailand, Singapore, Malaysia, the Philippines, and Brazil.  

Sea appeared in my recently developed Free Cash Flow (FCF) Growers stock screener.  As shown below, it passed all 17 of my screener criteria including the fact that the average target price of the 22 analysts currently covering the company is +44.4% above today's stock purchase price.  Also, although Sea's quarterly earnings reports have been erratic compared with analysts' estimates, I like that (unlike most companies) there is a close correlation between their quarterly GAAP and non-GAAP EPS results.  

  

As detailed below, a potential return-on-investment result is +2.0% absolute return-on-investment (equivalent to +39.7% annualized return-on-investment over the next 18 days) if the stock is assigned on the November 19th, 2025 options expiration date.

Sea Limited ADR (SE) -- New Covered Calls Position
The simultaneous buy/write transaction today was as follows:
12/1/2025 Bought 200 Sea Ltd. shares @ $137.15
12/1/2025 Sold 2 SE 12/19/2025 $130.00 Call options @ $9.65 per share
Note: the Implied Volatility of the Calls was 43.0 when this transaction was executed.  As I prefer, this value exceeds that of the S&P 500 Volatility Index (VIX) which is currently at 17.2.

A possible overall performance result (including commissions) for this Sea Ltd. Covered Calls position if assigned on the options expiration date is as follows:
Covered Calls Cost Basis: $25,501.34
= ($137.15 - $9.65) * 200 shares + $1.34 commission

Net Profit Components:
(a) Options Income: +$1,928.66
= ($9.65 * 200 shares) - $1.34 commissions
(b) Dividend Income $0.00
(c) Capital Appreciation (If Sea Ltd. shares assigned at $130.00 strike price at options expiration): -$1,430.00
+($130.00 strike price - $137.15 stock purchase price) * 200 shares

Total Net Profit (If Sea's shares are assigned at the $130.00 strike price at the 12/19/2025 expiration): +$498.66

= (+$1,928.66 options income + $0.00 dividend income - $1,430.00 capital appreciation)

Absolute Return-on-Investment (If SE shares assigned at $130.00 strike price on Dec. 19th, 2025 options expiration date): +2.0%

= +$498.66/$25,501.34

Annualized Return-on-Investment (If Sea Ltd. stock assigned at $130.00 strike price at the 12/19/2025 options expiration date): +39.7%

= (+$498.66/$25,501.34) * (365/18 days)