Early Assignment of Covered Call Position in Philip Morris International Inc.

I was notified by Schwab via email early this morning that the one Philip Morris International Inc.(ticker PM) January 9th, 2026 Call option was exercised yesterday, which was the last trading day prior to Philip Morris' 12/26/2025 ex-dividend date.  Despite the fact that the stock price has increased only slightly (from its $158.53 purchase price to $162.64 at yesterday's market close), the original Call option time value has decreased from the original $1.60 time value in the Call option when the position was established to about $.60 at yesterday's market close.  So, with sixteen days remaining until the January 9th options expiration date, the owner of this Call exercised their option to buy the 100 shares at the $155.00 strike price in order to receive tomorrow's $1.47 per share ex-dividend.  Although I will not receive the ex-dividend, I am pleased with the +47.4% annualized-return-on-investment (aroi) result achieved since it exceeds the maximum +33.1% aroi that might have been achieved if this position instead remained in-the-money and would therefore be assigned on its January 9th, 2026 options expiration date.   

The post when this Philip Morris Covered Call position was originally established is here.  As detailed below, the return-on-investment result for this Philip Morris Covered Call position was +1.0% absolute return in 8 days (equivalent to a +47.4% annualized return-on-investment).

Philip Morris International Inc. (PM) -- New Covered Call Position
The simultaneous net debit buy/write transaction was:
12/18/2025 Bought 100 Philip Morris shares @ $158.53.
12/18/2025 Sold 1 Philip Morris 1/9/2026 $155.00 Call option @ $5.13 per share.
Note: the Implied Volatility of this Call option was 19.2 when this position was established.
12/24/2025 One Philip Morris Call was exercised on the last business day prior to its December 26th, 2025 ex-dividend date, so the Call expired and the 100 PM shares were sold at the $155.00 strike price.

The overall performance results (including commissions) for this Philip Morris Covered Call position are as follows:
Covered Calls Cost Basis: $15,340.67

= ($158.53 - $5.13) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$512.33
= ($5.13 * 100 shares) - $.67 commission
(b) Dividend Income (Call option exercised early on Dec. 24th, 2025, the last trading day prior to the Dec. 26th ex-div date): +$0.00

(c) Capital Appreciation (Philip Morris Call option assigned early on Dec. 24th, 2025): -$353.00
+($155.00 strike price - $158.53 stock purchase price) * 100 shares

Total Net Profit: +$159.33

= (+$512.33 option income + $0.00 dividend income - $353.00 capital appreciation)

Absolute Return-on-Investment: +1.0%

= +$159.33/$15,340.67

Annualized Return-on-Investment: +47.4%

= (+$159.33/$15,340.67) * (365/8 days)