Established Covered Calls Position in The Walt Disney Company

A Covered Calls position was established in The Walt Disney Company (DIS) early in this morning's trading when the Covered Calls Advisor's buy/write limit order at a net debit limit price of $104.28 was executed. Three hundred shares were purchased at $107.57 and three December 26th, 2025 in-the-money Call options were sold at $3.29 at the $105.00 strike price. The potential time value profit from selling the Call options was $.72 per share [$3.29 Call options premium - ($107.57 stock purchase price - $105.00 strike price)].  This is the first position established in my Covered Calls Advisor Portfolio at the December 26th, 2025 options expiration date. 

In addition, there is an upcoming semi-annual ex-dividend of $.75 per share on December 15th, 2025 which is a +50.0% increase above last year's dividend amount in the same month.  So, this dividend is included in the potential annualized-return-on-investment results detailed below.  Also as desired, the next quarterly earnings report on February 4th, 2026 is after the December 26th, 2025 options expiration date.  

LSEG Stock Reports Plus has a 9 Average Rating and an 8 Optimized Rating (on a scale of 1 to 10) for Disney's stock.  The current average target price by the 26 analysts covering Disney is $135.02 which is +25.5% above today's stock purchase price.  Also, Disney passed all 17 criteria in my "Key Metrics for Comparing Companies" stock screener as shown in the table below:

Two potential return-on-investment results for this Disney Covered Calls position are: (1) +0.7% absolute return-on-investment (equivalent to +49.9% annualized return-on-investment for the next 5 days) if the stock price is assigned early on the last trading day prior to the Dec. 15th ex-dividend date; and (2) +1.4% absolute return-on-investment (equivalent to +32.0% annualized return-on-investment for the next 16 days) if the stock price increases and is in-the-money (i.e. above the $105.00 strike price) on the December 26th, 2025 options expiration date.

The Walt Disney Company (DIS) -- New Covered Calls Position

The buy/write transaction was:
12/10/2025 Bought 300 The Walt Disney Company shares @ $107.57
12/10/2025 Sold 3 DIS 12/26/2025 $105.00 Call options @ $3.29 per share.
12/15/2025 Ex-dividend of $.75 per share.

Two possible overall performance results (including commissions) for this Disney Covered Calls position are as follows:
Covered Calls Net Investment: $31,286.01
= ($107.57 - $3.29) * 300 shares + $2.01 commission

Net Profit:
(a) Options Income: +$984.99
= ($3.29 * 300 shares) - $2.01 commission
(b) Dividend Income:  +$225.00
= ($.75 dividends per share x 300 shares)
(c) Capital Appreciation (If DIS stock price assigned early on Dec. 12th which is the last trading day prior to next Monday's 12/15/2025 ex-dividend date): -$771.00

= ($105.00 stock selling price on expiration date - $107.57 stock purchase price) x 300 shares

(c) Capital Appreciation (If DIS stock price is above the $105.00 strike price on the 12/26/2025 options expiration date): -$771.00

= ($105.00 stock selling price on expiration date - $107.57 stock purchase price) x 300 shares

1. Total Net Profit (If stock price assigned early on Dec. 12th which is the last trading day prior to next Monday's 12/15/2025 ex-dividend date): +$213.99

= (+$984.99 options income + $0.00 dividend income - $771.00 capital appreciation); OR

2. Total Net Profit (If stock price increases to above the $105.00 strike price on the 12/26/2025 options expiration date): +$438.99

= (+$984.99 options income + $225.00 dividend income - $771.00 capital appreciation)

1. Potential Absolute Return-on-Investment (If stock price assigned early): +0.7%

= (+$213.99/$31,286.01)

Potential Equivalent Annualized Return-on-Investment: +49.9%

= (+$213.99/$31,286.01) * (365/5 days); OR

2. Potential Absolute Return-on-Investment (If stock price is above the $105.00 strike price on the 12/26/2025 options expiration date and therefore assigned): +1.4%

= (+$438.99/$31,286.01)

Potential Equivalent Annualized Return-on-Investment: +32.0%

= (+$438.99/$31,286.01) * (365/16 days)