Established Covered Calls Position -- EMC Corp

Today, a new covered calls position was established in EMC Corp  (Ticker Symbol EMC).  This EMC position was established at the $28.00 strike price and with an Oct2014 options expiration.  As shown below, this investment will provide a +1.5% absolute return in 17 days (which is equivalent to a +32.5% annualized return) if EMC stock closes at or above $28.00 at options expiration on Oct 18th.

The details of the associated transactions and a potential return-on-investment result are as follows:

1. EMC Corp (EMC)
The transactions were as follows:
10/02/2014 Bought 400 EMC shares @ $28.27
10/02/2014 Sold 4 EMC Oct2014 $28.00 Call Options @ $.75
Note: the price of EMC was $28.27 today when these options were sold.

A possible overall performance result (including commissions) for these EMC covered calls is as follows:
Stock Purchase Cost: $11,316.95
= ($28.27*400+$8.95 commission)

Net Profit:
(a) Options Income: +$288.05
= 400*$.75 - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If EMC assigned at $28.00) = -$116.95
= ($28.00-$28.27)*400 - $8.95 commissions

Total Net Profit (If EMC assigned at $28.00): +$171.10
= (+$288.05 +$0.00 -$116.95)

Absolute Return if Assigned (at $28.00): +1.5%
= +$171.10/$11,316.95
Annualized Return If Assigned (ARIA): +32.5%
= (+$171.10/$11,316.95/$11,316.95)*(365/17 days)

The downside 'breakeven price' at expiration is at $27.52 ($28.27 - $.75), which is 2.7% below the current market price of $28.27.
The 'crossover price' at expiration is $29.02 ($28.27 + $.75). This is the price above which it would have been more profitable to simply buy-and-hold EMC stock until Oct 17th (the Oct2014 options expiration date) rather than establish this covered calls position.