Covered Call Position Established in T-Mobile US, Inc.

Today a short-term Covered Call position was established in T-Mobile US, Inc. (ticker symbol TMUS).  My buy/write limit order was executed when 100 shares were purchased at $188.74 and 1 June 5th, 2026 weekly Call option was sold at $5.59 per share at the $185.00 strike price.  The time value (aka extrinsic value) profit potential in the Call option was $1.85 per share [$5.59 Call option premium - ($188.74 stock price - $185.00 strike price)] when this transaction executed.  There is also an upcoming ex-dividend of $1.02 per share this Friday (May 29th, 2026).  When this position was established, the probability that the Call will be in-the-money on the options expiration date was 64.9%.  Since it is unlikely that the Call option will be exercised early (i.e. on the day prior this Friday's ex-dividend date), only the potential return-on-investment results are shown below if the stock is in-the-money on its June 5th options expiration date.  Important to the Covered Calls Advisor, T-Mobile's next quarterly earnings report on July 22nd is after the June 6th options expiration date. 

Analysts' average target price for T-Mobile is currently $257.90 which is +36.6% above today's stock purchase price.  Fundamentally speaking, T-Mobile is Buy rated by LSEG Stocks Plus Report (on a scale of 1 to 10) with an Average Score of 6 and an Optimized Score of 7.  It is rated 4* by Morningstar and 5* Strong Buy by CFRA. 

As detailed below, a potential return-on-investment result is: +1.6% absolute return (equivalent to +57.2% annualized return-on-investment over the next 10 days) if the stock is assigned on the June 5th options expiration date.

T-Mobile US, Inc. (TMUS) -- New Covered Call Position

The buy/write transaction was:
5/26/2026 Bought 100 T-Mobile shares @ $188.74.
5/26/2026 Sold 1 T-Mobile 6/5/2026 $185.00 Call option @ $5.59 per share. The Implied Volatility of the Call option was 29.3 when this transaction was executed.
5/29/2026 Upcoming quarterly ex-dividend of $1.02 per share.

A possible overall performance result (including commission) for this Covered Call position are as follows:
T-Mobile Covered Call Cost Basis: $18,315.67
= ($188.74 - $5.59) * 100 shares + $.67 commission

Net Profit Components:
(a) Options Income: +$559.00
= ($5.59 * 100 shares)
(b) Dividend Income (T-Mobile stock assigned at the June 5th, 2026 options expiration): +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Appreciation (If shares assigned at the $185.00 strike price on the 6/5/2026 options expiration date): -$374.00
+($185.00 - $188.74) * 100 shares

Potential Total Net Profit (If T-Mobile shares assigned at $185.00 strike price at the June 5th, 2026 options expiration date): +$287.00

= (+$559.00 option income + $102.00 dividend income - $374.00 capital appreciation)

Potential Absolute Return (If T-Mobile shares assigned at the $185.00 strike price at the June 5th, 2026 options expiration date): +1.6%

= +$287.00/$18,315.67

Potential Annualized Return-on-Investment (If T-Mobile shares assigned at the $185.00 strike price at the June 5th, 2026 options expiration date): +57.2%

= (+$287.00/$18,315.67) x (365/10 days)