Closed Out Covered Call Position in AppLovin Inc.

Last Friday, the Covered Call position in AppLovin Inc. (ticker APP) closed out-of-the-money at $305.77 which was below its $310.00 strike price.  With AppLovin's stock price at $304.92 in this morning's trading session, I decided to close out the position by selling the 100 shares.

As detailed below, the return-on-investment results are: +1.3% absolute return (equivalent to +24.8% annualized return-on-investment) for the 19 days of this investment.

AppLovin Corporation (APP) -- Covered Call Position Closed Out

The simultaneous buy/write transaction was as follows:
8/6/2026 Bought 100 shares of AppLovin stock @ $335.02 per share.  
8/6/2026 Sold 1 AppLovin August 21st $310.00 Call option @ $34.00 per share.
Note: The Implied Volatility of the Call option was 70.2% when this transaction was executed which, as preferred, substantially exceeds the current 15.6 of the S&P 500 Volatility Index (i.e. VIX). 
8/21/2026 100 AppLovin shares closed below the $310.00 strike price so the Call option expired and 100 AppLovin shares remain in the Covered Calls Advisor Portfolio

8/25/2026 Closed out this Covered Call position by selling the 100 remaining APP shares at $304.92.

The overall performance result (including commissions) was as follows:
Covered Call Cost Basis: $30,102.67
= ($335.02 - $34.00) * 100 shares + $.67 commission

Net Profit Components:
(a) Option Income: +$3,399.33
= ($34.00 * 100 shares) - $.67
(b) Dividend Income: +$0.00 
(c) Capital Appreciation (100 shares of AppLovin stock sold at $304.92): -$3,010.00
= ($304.92 stock selling price - $335.02 stock purchase price) * 100 shares

Total Net Profit: +$389.33
= (+$3,399.33 option income + $0.00 dividend income - $3,010.00 capital appreciation)

Absolute Return-on-Investment: +1.3%
= +$389.33/$30,102.67
Equivalent Annualized Return-on-Investment: +24.8%
= (+$389.33/$30,102.67) * (365/19 days)