Established Covered Calls Position -- Chevron Corporation

Today, a new covered calls position was established in Chevron Corporation  (Ticker Symbol CVX).  This Chevron position was established at the $118.00 strike price and with a Nov2014 options expiration.  As shown below, this investment will provide a +1.3% absolute return in 18 days (which is equivalent to a +26.2% annualized return) if Chevron stock closes at or above $118.00 at options expiration on Oct 18th.

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

1. Chevron Corporation (CVX)
The transactions were as follows:
10/01/2014 Bought 300 CVX shares @ $118.54
10/01/2014 Sold 3 CVX Oct2014 $118.00 Call Options @ $2.14
Note: the price of CVX was $118.54 today when these options were sold.

A possible overall performance result (including commissions) for these Chevron covered calls is as follows:
Stock Purchase Cost: $35,570.95
= ($118.54*300+$8.95 commission)

Net Profit:
(a) Options Income: +$630.80
= 300*$2.14 - $11.20 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If CVX assigned at $118.00) = -$170.95
= ($118.00-$118.54)*300 - $8.95 commissions

Total Net Profit (If CVX assigned at $118.00): +$459.85
= (+$630.80 +$0.00 -$170.95)

Absolute Return if Assigned (at $118.00): +1.3%
= +$459.85/$35,570.95
Annualized Return If Assigned (ARIA): +26.2%
= (+$459.85/$35,570.95)*(365/18 days)

The downside 'breakeven price' at expiration is at $116.40 ($118.54 - $2.14), which is 4.7% below the current market price of $118.54.
The 'crossover price' at expiration is $24.089 ($118.54 + $2.14). This is the price above which it would have been more profitable to simply buy-and-hold Chevron stock until Nov 21st (the Nov2014 options expiration date) rather than establish this covered calls position.