Established a Second EMC Corp Covered Calls Position

Today, a new covered calls position was established in EMC Corp  (Ticker Symbol EMC).  This is the second EMC covered calls position established at the Covered Calls Advisor Portfolio at the current time.  The prior position was at the $28.00 strike price and with an Oct2014 options expiration, whereas this new position is at the $29.00 strike price and for the Nov2014 expiration.  As shown below, this investment will provide a +2.8% absolute return in 47 days (which is equivalent to a +21.6% annualized return) if EMC stock is unchanged at $28.33 (today's purchase price).  If the stock were to increase above the $29.00 strike price at the Nov2014 expiration, the absolute return would be +5.1% (equivalent to a +39.9% annualized return).

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

1. EMC Corp (EMC)
The transactions were as follows:
10/07/2014 Bought 400 EMC shares @ $28.33
10/07/2014 Sold 4 EMC Nov2014 $29.00 Call Options @ $.84
Note: the price of EMC was $28.48 today when these options were sold.

Two possible overall performance results (including commissions) for these EMC covered calls is as follows:
Stock Purchase Cost: $11,340.95
= ($28.33*400+$8.95 commission)

Net Profit:
(a) Options Income: +$324.05
= 400*$.84 - $11.95 commissions
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If EMC price unchanged at $28.33) = -$8.95
= ($28.33-$28.33)*400 - $8.95 commissions; or
(c) Capital Appreciation (If EMC closes above $29.00 strike price) = +$259.05
= ($29.00-$28.33)*400 - $8.95 commissions

1. Total Net Profit (If EMC price unchanged at $28.33): +$315.10
= (+$324.05 +$0.00 -$8.95); or
2. Total Net Profit (If EMC closes above $29.00 strike price at Nov2014 options expiration): +$583.10 = ($324.05+$0.00+$259.05)

1. Absolute Return if Price Unchanged at $28.33: +2.8%
= +$315.10/$11,340.95
Annualized Return If Assigned (ARIA): +21.6%
= (+$315.10/$11,340.95)*(365/47 days)

2. Absolute Return if Assigned (at $29.00 strike price): +5.1%
= +$583.10/$11,340.95
Annualized Return If Assigned (ARIA): +39.9%
= (+$583.10/$11,340.95/$11,316.95)*(365/47 days)

The downside 'breakeven price' at expiration is at $27.49 ($28.33 - $.84), which is 3.0% below the current market price of $28.33.
The 'crossover price' at expiration is $29.17 ($28.33 + $.84). This is the price above which it would have been more profitable to simply buy-and-hold EMC stock until Nov 22nd (the Nov2014 options expiration date) rather than establish this covered calls position.