As detailed below, the return-on-investment results are: +2.0% absolute return (equivalent to +27.6% annualized return-on-investment) for the 26 days of this investment.
The simultaneous net debit buy/write transaction was:
12/17/2025 Bought 100 NetApp Inc. shares @ $110.74.
12/17/2025 Sold 1 NetApp 1/9/2026 $107.00 Call option @ $5.20 per share.
Note: the Implied Volatility of this Call option was 26.3 when this position was established.
1/2/2026 NetApp ex-dividend at $.52 per share.
1/9/2026 Call option closed out-of-the-money, so the Call option expired and 100 NetApp shares remained in the Covered Calls Advisor Portfolio.
1/9/2026 Call option closed out-of-the-money, so the Call option expired and 100 NetApp shares remained in the Covered Calls Advisor Portfolio.
1/12/2026 Sold 100 shares of NetApp at $107.10 per share.
The overall performance results (including commission) for this NetApp Inc. Covered Call position are as follows:
Covered Call Cost Basis: $10,554.67
The overall performance results (including commission) for this NetApp Inc. Covered Call position are as follows:
Covered Call Cost Basis: $10,554.67
= ($110.74 - $5.20) * 100 shares + $.67 commission
Net Profit Components:
(a) Option Income: +$519.33
= ($5.20 * 100 shares) - $.67 commission
(b) Dividend Income: +$52.00
= ($.52 dividend per share x 100 shares)
Net Profit Components:
(a) Option Income: +$519.33
= ($5.20 * 100 shares) - $.67 commission
(b) Dividend Income: +$52.00
= ($.52 dividend per share x 100 shares)
(c) Capital Appreciation (100 NetApp shares sold at $107.10): -$364.00
+($107.10 stock sales price - $110.74 stock purchase price) * 100 shares
+($107.10 stock sales price - $110.74 stock purchase price) * 100 shares
Total Net Profit: +$207.33
= (+$519.33 option income + $52.00 dividend income - $364.00 capital appreciation)
Absolute Return-on-Investment: +2.0%
= +$207.33/$10,554.67
Annualized Return-on-Investment: +27.6%
= (+$207.33/$10,554.67) * (365/23 days)
